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The main objective of this study is to examine the direct impact of
business ethics i.e. ethical leadership and ethical climate on employees’
affective commitment and employees’ performance and also examine
the indirect impact of trust in organization between business ethics i.e.
ethical leadership and ethical climate on employees’ affective
commitment and employees’ performance. To fulfill the objective, this
study hypothesized a positive relationship between business ethics i.e.
ethical leadership and ethical climate and employees’ affective
commitment and employees’ performance. Data was collected through
distributing 600 questionnaires among the employees working in
regional and head offices of cellular operators i.e. Mobilink, Ufone,
Telenor, Zong and Warid located in four big cities of Punjab Pakistani.e. Multan, Faisalabad, Lahore and capital city Islamabad. Out of 600,
518 questionnaires were used for analysis using SPSS 20 software. The
results showed that two dimensions of business ethics i.e. ethical
leadership and ethical climate has a significant positive relationship
with employees’ affective commitment and employees’ performance.
Moreover, this results supported the partial mediation of trust in
organization between the business ethics namely ethical leadership and
ethical climate and employees’ out comes i.e. employees’ affective
commitment and employees’ performance . Finally, the study also
presents some theoretical and managerial implications, limitations and
suggestions for future research.
Muhammad Arif Nawaz, Dr. Masood Ul Hassan, Dr. Khawar Naheed. (2017) Impact of Ethical Leadership and Ethical Climate on Employees’ Outcomes: The Mediating Effect of Trust in Organization, Orient Research Journal of Social Sciences, Volume 2, Issue 2.
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