Desirable ethical climates impacts on organizational effectiveness: Moderations by firm characteristics

Abstract

This empirical study examines the relationships between ethical climates and organizational effectiveness moderated possibly by job satisfaction (JS), organizational commitment (OC), and organizational citizenship behavior (OCB). The sample consisted of 383 employees in four companies operating in South Korea. The study focused on desirable ethical climates, rather than all the nine types of Victor and Cullen, along with the firm characteristics. The results found that the impacts of desirable ethical climates are effective and positive, except on OC. Contrary to the antecedent research consequences, the impact of social responsibility climate on OC is negative. In addition, the results indicate that the firm’s characteristics (size and nationality) differentiate their impacts on organizational effectiveness especially, on the factors of OC. Key words: Desirable ethical climate, firm characteristics, organizational effectiveness, organizational commitment.