Introduction Background to the StudyNowadays, organizations, especially in the hospitality industry face an environment where the demand for customers is changing and ever-increasing. Contemporary business settings require higher performance standards for employees due to globalization and technological developments (Belleflamme, Omrani and Peitz, 2015). Interactive communication amid individual employees and their leaders, whose conducts are perceived as ethically right, will endorse sustainable relationships with them and their leaders. The ethical conducts on the part of leaders can lead to sustainable management at the macro level (Han, Wang and Yan, 2019). Therefore, the efforts and competencies of employees need to be directed by fair and exemplary leaders. Leaders have to be necessarily dynamic in leading. Good leaders express duality by acting differently, but positively, in different situations to express their competencies and maintain the success of organizations.Longman Business Dictionary (2017) defines ethics as moral rules or principles of behaviour that should guide members of a profession or organization and make them deal honestly and fairly with each other and with their customers. Likewise, it has been noted that a company should apply ethics also when dealing with its stakeholders, in addition to its customers or employees (Cleveland, 2002). Moreover, some authors, Ferrel et al (2011) and Pauna et al (2014) have shown in their papers that fairness and honesty represent the heart of a moral business and there should be no discrimination when it comes about applying the rules within an organization. A code of ethics may help companies to improve their business activities, reducing ambiguities and communicating the ethical vision of the company to all interested parties.Establishing high ethical standards within the organization can attract and retain the best employees and professionals who will work to improve the fortunes of the organization. The professionals and their quality services will subsequently build customers' confidence in the organization and keep them coming in and returning back. Such practices can ultimately contribute significantly to better financial performance in the organizations (Carroll and Buchholtz, 2006). The subject of business ethics is a set of moral rules of conduct in all business activities directed towards a successful and