Toward a Better Understanding of the Link Between Ethical Climate and Job Satisfaction: A Multilevel Analysis

Research concerning the relationship between psychological ethical climate and job satisfaction is popular in the literature. However, to date, no study in the literature has simultaneously investigated both the effects of individual-level and organization-level ethical climates on employees' job satisfaction. On the basis of a multilevel analysis, the present study used a sample of 472 full-time employees from 31 organizations in Taiwan to examine the above two effects. Results from the analyses showed that within the organizations, individual employees' instrumental climate perceptions were negatively related to job satisfaction, whereas their caring climate perceptions and rules climate perceptions were positively related to job satisfaction. Also, the results indicated that between organizations, organizational instrumental climate was negatively related to job satisfaction, whereas organizational caring, independence, and rules climates were positively related to job satisfaction. Implications for research and managerial practices were derived from these findings.