Matching Ethical Work Climate to In-role and Extra-role Behaviors in a Collectivist Work Setting

This paper studies the relationship between organizational ethical climate and the forms of organizational citizenship behavior (OCB), including in-role and extra-role behaviors, and examines the mediating effect of employee loyalty. A sample of employees from a traditional Hong Kong-based company was used as a study group. The purpose of this study was to examine the causes and implications of how various ethical work climates affect employee performance. Based on a model proposed by Victor and Cullen, ethical climate is arranged from lower levels to higher levels. The results suggest that lower levels of ethical climate (instrumentality and independence), characterizing a weak relational contract between employee and employer, are associated with negative extra-role behavior. In contrast, higher levels of ethical climate (caring and law-and-code), symbolic of a strong relational contract at work, are associated with positive extra-role behavior. Moreover, normative commitment mediated a positive relationship between caring and identification with the company, whereas attitudinal loyalty mediated the negative relationship between independence and altruism. Implications for future research and practice are discussed. Dr. Alicia Leung is an Associate Professor of Management at the Hong Kong Baptist University. She received her Ph.D. degree in Management Learning from the University of Lancaster, U.K. She is active in researching and writing materials about Asian organizations and management issues. Her research interests include gender issues and feminist methodology, business ethics, corporate governance, and strategic management in the Asian context.