Abstract：Unethical behavior in organizations has attracted increasing attention among researchers, yet we know little about when and why unethical behavior conducted by leader that is intended to benefit organization (UPB) would translate into employee unethical behavior. Drawing upon moral disengagement and social learning theoretical perspectives, we proposed that leader UPB reflects leader moral disengagement practices which are modeled by employees, especially among those with high power distance orientations; employee moral disengagement, in turn, frees employee to engage in unethical behavior. We found support for our theoretical model in a scenario experiment and a two-wave field survey study.  We discussed theoretical and practical implications of our findings.