ABSTRACT
This chapter focuses on describing internal organizational drivers of ethical climate, the consequences of ethical climate, means for improving the organization's ethical climate and subsequently improving individual well-being, and directions for future research. The ethical philosophy and sociological theory of reference groups, Victor and Cullen developed a typology of ethical work climates. The typology consists of five empirically distilled dimensions of ethical climate: "caring", "rules", "law and code", "independence", and "instrumental". Ethical climate is related to various job outcomes that can affect an individual's subjective, psychological, physical, and social well-being. Subjective well-being conceptualizes well-being in terms of overall life satisfaction and happiness. An organizational climate perceived as unethical can have serious consequences for both its members and the organization as a whole. Employees in an ethical climate tend to behave more ethically, exhibit less deviant work behavior, experience less role stress, encounter fewer injuries on the job, and be more satisfied with their job.
