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Indian banking sector is facing a number of challenges, and increasing number of corporate frauds and employee turnover are among the top list. Literature reveals that gaining insights about ethical climate may provide a possible solution and relief from the challenges being faced. This paper aims to contribute to the understanding of the prevalent various ethical climate types in the Indian banking industry. Furthermore, it presents interesting results by investigating the effect of five theorized ethical climate types on organizational commitment along with its three components in the banking sector.

This empirical research encompasses a descriptive research design. Sample uses 266 respondents from four prime banks of the Indian banking industry.

Statistical analyses unveiled that all five conceptualized ethical climate types are prevalent in the Indian banking industry. However, the perception of employees for caring climate was the highest among all others. In contrast to the results reported by Western studies, this research reveals a strong negative impact of instrumental climate on affective commitment. Furthermore, it has been seen that instrumental climate is a significant predictor for the three components of commitment (affective, continuance and normative). However, it fails to predict the overall organizational commitment construct. Likewise, opposed to findings of Western countries, law and code, rules and independent climate types have shown significant relationship and impact on organizational commitment for Indian banking sector employees. It has been found that different commitment components are predicted by a diverse mix of climate types in India.

Findings highlight varying strength of relationship and predictive ability of different ethical climate types with commitment. This helps in elucidating that managers and top executives should focus on building an ethical work environment to warrant high-level commitment among employees. Congruence between employee, manager and organizations’ perception of ethics is a pre-requisite for maintaining a long-term relationship among the parties. This study will enable understanding the role of ethical climate in reducing corporate frauds and employee turnover.

This research addresses a significant gap in literature by exploring the relationship between ethical climate and organizational commitment. The study uses data from the Indian banking industry which contributes to expanding knowledge of the relationship in the Indian context.

The purpose of this paper is to investigate the relationship of corporate ethical values (CEV) on the work attitudes linked to the organizational behavior of employees. It primarily focusses on examining the relationship of CEV with organizational commitment (OC) and the turnover intention (TI) of employees.

Study undertakes an explanatory analysis on a sample of 150 employees from large and medium scale Indian Information Technology Business Process Outsourcing firms.

Results of the study revealed significant relationships among the variables. Strong positive association has been found between CEV and commitment, whereas, contrasting result has been found with TI of employees. CEV explained 22 percent and 23 percent of variance in commitment and TI, respectively. Moreover, the relationship of ethical values and TIs has been found to be mediated through OC.

Study enables the managers to understand wider impact of ethics in an organization and its positive impact on employees in increasing their commitment levels. Managers should focus on the ethical aspects of conducting business to ensure that the employees are well engaged with their employer and have the least tendency to shift when given an opportunity.

This research attempts to bridge the gap in the existing literature by explaining relationship among variables (CEV, OC and TI) in context to the South-Asian nations, and especially India.