Healthy, stress-free workplaces encourage employee innovation and creativity, which benefits the company. However, this creates difficulty as the dispositions and behaviors of employees are influenced by factors such as stretch goals. Employees tend to be under pressure, which causes them to act unethically and eventually affects the companys overall performance. This study investigates the effects of stretch goals on unethical behavior while considering the mediating effect of ambivalent identification and the moderating effect of competitive psychological climate, based on the conceptual framework proposed by Chen and Zhang (2021). The hypotheses of the study were tested using regression analysis and hierarchical multiple linear regression. Lastly, the study utilized PROCESS macro developed by Hayes in 2013. The study used a quantitative and descriptive causal design. Using purposive random sampling, the researcher surveyed 140 employees from real estate companies in Lipa City, Batangas. The researcher found that stretch goals have a significant effect on ambivalent identification. On the other hand, the effect of stretch goals on competitive psychological climate was not significant, suggesting that the effect of stretch goals on ambivalent identification does not depend on competitive psychological climate. Thereupon, the researcher recommends a program to help the real estate industry avoid such conflicts that arise due to the unethical behavior of its employees. The implementation of such measures would not only enhance intra-organizational collaboration and coordination but also foster a healthy working environment, thereby conferring a competitive edge on the company.