Ethical Climate as a Determinant of Organizational Commitment

Abstract

Ethical climate is a vital phenomenon in organizational ethics. It consists of two major components: benevolent climate and principled climate. Recent studies in this field highlight that the ability of employees to appropriately implement such ethical climates may have a significant impact on organizational commitment. Although many studies have been done, the role of ethical climate as an important determinant is little discussed in the organization ethic research literature. Therefore, this study is undertaken to examine the relationship between ethical climate and organizational commitment. A survey method was used to gather data from employees at public agencies in Peninsular Malaysia. The outcomes of the SmartPLS path model analysis showed two important findings: firstly, the benevolent climate was positively and significantly related to organizational commitment. Secondly, the principled climate was positively and significantly related to organizational commitment. This study offers discussions, implications, and suggestions for further research.