This study investigates how market competition trickles down into the organizational climate causing employees to engage in unethical pro-organizational behavior (UPB). Drawing on conservation of resources theory, this paper demonstrates that market competition, which is reflected in the organization’s climate, constitutes a potential threat to an individual’s resources. In order to prevent a loss of resources individuals engage in UPB as a coping mechanism hoping to boost their own and the organization’s performance. It is further examined whether code of conduct is an effective governance mechanism in a competition driven context to prevent unethical behavior. Using data from 465 working adults, the results of the study support the hypothesis. The results show that market competition trickles down into organizational climate causing individuals to engage in UPB. Only when fully established, code of conduct works as a suppressor of unethical decision-making in a competition driven context.