An increasing number of studies explore the relationship between ethical leadership and subordinates’ work behavior. However, it remains unclear whether ethical leadership affects subordinates’ perceptions of the person-job fit and perceived person-organization fit. We examine the effects of ethical leadership on subordinates’ sense of person-environment fit in terms of its effect on displays of positive and negative behaviors. We collected data from 414 employees from various industries over three time periods. Hypotheses were tested using structural equation modeling (SEM). The SEM (...) results show that person-job fit and person-organization fit mediate the effects of ethical leadership on proactive, and unethical behavior. Person-organization fit mediates the effects of ethical leadership on proactive behavior by the organization and unethical behavior by the organization. These results have implications for management. (shrink)