Cross-level effects of ethical climate on the relationship between psychological contract breach and ethical decision-making intention

Abstract

This study explored the relationship between psychological contract breach and ethical decision-making intention. Previous studies analyzed the relation mainly from the Western cultural perspective, thus leaving the Eastern context. In this regard, the present study examined the cross-level moderating effect of ethical climate on variables at the individual level. Forty state-owned and private companies participated in the study. The findings suggest that organizational ethical climate is not a significant moderator of the relation between individual psychological contract breach and ethical decision-making intention. On the contrary, the findings indicated that individual psychological contract breach and organizational ethical climate significantly influence the ethical decision-making intention of employees.