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"Factors Affecting Ethical Leadership” shows that the ethical behavior of leaders is the most important factor in shaping an organization’s ethical climate. Representatives from ten countries, Canada, Australia, Czech Republic, Finland, Greece, Netherlands, Slovenia, Sweden, United Kingdom and United States of America participated in the research, with six (Canada, Australia, Finland, Netherlands, Sweden and the USA) able to collect data. The goals of RTG HFM-304 included identifying the individual, situational, and organizational variables predictive of ethical leadership, developing a model of ethical leadership, and collating best practice in military ethics education amongst NATO and Partner for Peace (PfP) countries. Findings evidence that ethical leadership is strongly associated with values, in particular with value achievement (e.g., setting high standards and striving for excellence) and person-environment fit. Leaders who have the ability to address an ethical dilemma tend also to be those with high standards, a firm foundation in values (such as helping others and generosity) and belief that their institution shares these values. To engender ethical cultures and attract, train and sustain principled leaders, there is a need for military institutions to emphasize values, reinforce ethical decision-making and promote and value-informed ethical leadership from the beginning.