Organizational ethical climate: influence on employee meaning and well-being

Abstract

Purpose

The organizational environment can influence how employees experience meaningfulness. This study examines the mediating role of meaningful work between organizational ethical climates and the affective well-being of employees. We also test for the moderating role of self-regulatory traits in this relationship.

Design/methodology/approach

Partial least squares – structural equation modelling (PLS-SEM) was employed to test the hypothesized model using responses from 430 working professionals. Recommended robustness checks were conducted before model assessment and hypotheses testing.

Findings

The findings suggest that a caring ethical climate is positively related to affective well-being. Meaningful work dimensions, i.e. unity with others, inspiration and balancing tensions partially mediate the relationship between the caring climate and affective well-being. Integrity with self and balancing tensions fully mediate the negative effect of an instrumental climate on affective well-being. Positive mediation of unity with others and negative mediation of reality were observed between a law and code climate and affective well-being. Moderating effects of self- and other-orientation and self-monitoring were also observed.

Research limitations/implications

The study presents significant insights, however, a few limitations must be discussed. The study has relied on cross-sectional data which may be addressed in future studies.

Practical implications

In times when organizations are spending in large amounts in ensuring meaningful work and employee well-being, this study suggests internal mechanisms that can bring positive impact in employees' work life. Leaders should assess how employees perceive the ethical climate of the organization in order to provide better meaningful work opportunities to the workforce.

Social implications

Having meaningful work and experiencing affective well-being are significant for a collective betterment of society. Meaningful work encourages individuals in identifying how their work if affecting the society. A affectively happy workforce is essential in building a mentally healthy society.

Originality/value

This study contributes to the investigation of organizational factors that help employees find meaning in their work. Based on ethical climate theory, this study highlights how organizations can redesign and modify their ethical climates to provide opportunities for employees to experience meaningful work and improve their affective well-being.

Citation

Pandey, J., Kumar, M. and Singh, S. (2024), "Organizational ethical climate: influence on employee meaning and well-being", Management Decision, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MD-10-2023-1823