However in some cases employees sometimes bend rules when being pressurized by the top management to make more profits and sometimes to earn higher bonuses.
He said unethical business practices are extremely expensive, Leeson single handedly brought down Barings which was a highly respected institution.
"The best solution for this is to get the right people," Shah said.
"Recruit for attitude and train for skills."
"You can't expect the board or the chief executive officer (CEO) to be unethical and be the rest of the organization to be ethical," Suresh Shah, chief executive at Lanka Breweries, said.
"Either they (the employees) will follow the example set by the top management or they will leave.
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Shah was panelist at a power business forum on organized by the Chartered Institute of Management Accounts (CIMA) on 'ethics in human resources management' to over 100 senior corporate executives at the Cinnamon Grand Hotel, Colombo.
Shah, who heads Lanka Breweries, the larges