Ethical climate, corporate social responsibility and organizational performance: evidence from the UAE public sector

Abstract

PurposeResearch about ethical governance and corporate social responsibility (CSR) in the United Arab Emirates is still in its infancy. This study aims to explore the public sector employee’s perception toward ethical climate, codes of ethics and CSR and its impact on organizational performance. This research sheds light on the link between formalized ethical procedures and employee responses including CSR, organizational engagement and organizational performance.Design/methodology/approachData were collected from 426 middle-level public sector employees in Abu Dhabi, the capital of the United Arab Emirates, using structural equation modeling to test the proposed hypotheses.FindingsThe findings of this study suggest that an ethical climate is an important organizational component, and that the incorporation of effective codes of ethics and CSR initiatives is desired. Perceptions of public sector employees are positively influenced by the organization’s ethical climate and CSR activities, which in turn affect organizational performance.Research limitations/implicationsThe study provides managerial insights for improving the ethical climate and CSR within the public sector context in the United Arab Emirates.Practical implicationsThe study offers implications for public sector employers and points out that public sector employers should formulate policies to boost the ethics and CSR environment at workplace to attain competitive advantage.Originality/valueThe paper contributes to the literature by being one of the first to study organizational ethical climate and CSR within a Middle Eastern public sector context and offers implications for theory and practice.