A total of 223 participants belonging to the banking domain in Iraq participated in this study to verify the hypothesis. This study explored the effect of ethical leadership and how it affected the turnover intention through arbitrating effect on ethical climate. It was proposed that leaders function as role models at the workplace. Particularly, the behaviour of leaders critically affected the ethical climate perception. In turn, it positively affected the turnover intention of the members of the organisation. Furthermore, the turnover intention and ethical climate relationship can be improved as per the degrees of self-efficiency. The study discovered that ethical leadership affected the turnover intention, and also it affected the ethical climate perception which reduced the turnover intention, and this effect could be of greater extent for those with higher self-efficiency. Theoretic and practical inferences have been presented in the paper.
