Ethical Climate and its Relationship with Perceived Organizational Justice: A Field Study in the Banking Sector of the City of Tokat

Abstract

The aim of this study is to investigate the relationship between ethical climate and the sub-dimensions of perceived organizational justice (procedural justice, distributional justice, interactional justice) as well as determine whether ethical climate is the predictor of employees' perception of justice. First, the concepts of ethics, work ethics, ethical climate, the results of the ethical climate, and the ethical climate model are presented. Later, perceived organizational justice is discussed, along with its results and effects. The research section is presented after providing the theoretical and empirical findings about ethical climate and its relationship with perceived organizational justice. A field study on the banking sector of the city of Tokat is conducted to determine whether ethical climate is a meaningful predictor of employees' perception of justice. A questionnaire is administered to collect data from 210 bank employees working in 22 banks across the Tokat city center. Descriptive statistics and regression analysis are then used to analyze the data obtained. Results show that there exists a positive relationship between ethical climate and the three dimensions of the perceived organizational justice; furthermore, ethical climate is a positive predictor influencing employees' perception of justice in all three dimensions. Finally, some suggestions are made about the applications of the study' s findings.

Assessing the Mediating Effect of Organizational Climate in the Context of Malaysian Banking Industry

“…Katsaros and Nicolaidis (2012) reported that workers' commitment is tested mainly on the workers' understanding of the organization's commitment (increase in score for high commitment but not for low commitment in organizations). A better working climate presence was detected based on the supervisory behavior (Mumcu et al, 2016). This contributed to the employees' favorable desire to obtain a positive outcome of the organization involved.…”

“…Employees are encouraged to contribute more equally towards the work climate. Their shared perceptions involve the methods and practices applied in organizations to establish higher quality exchanges with other followers in gaining a better working climate (Mumcu et al, 2016). This greatly affects the employees' citizenship behavior, which can ultimately benefit organizations.…”