Do ethical climates impact trust in management? A study in Indian context

Abstract

Purpose The purpose of this paper is to explore the effects of ethical climate types on trust in management using Victor and Cullen’s framework, which is based on Kohlberg’s theory of moral development and Gouldner’s sociocultural theory of organizations. Design/methodology/approach A sample of 270 employees from 10 organizations in India was used to investigate the specific relationships between ethical climate types and trust in management. Data were collected through self-report questionnaires. Exploratory factor analysis was used to identify the different types of ethical climates existing in the organizations. Hierarchical regression analysis was used to explore the relationship between ethical climates and trust in management. Findings It was found that ethical climates characterized by caring, laws and codes, and rules and procedures are significant predictors of trust in management. However, no support was obtained for any impact of ethical climates emphasizing company profit, self-interest or independence on trust in management. Research/limitations implications Future research should examine trust in management as a mediating or moderating variable in the relationship between ethical climates and other organizational variables such as commitment, citizenship behaviour or productivity. Additionally, research could also examine different cultural and organizational contexts in testing out these relationships. The role of other constructs such as personality of supervisors and ethical sensitivity in developing trust in management may also been investigated. Practical implications Organizations should try to develop climates based on caring and also emphasize adherence to laws and codes as well as rules and procedures to enhance trust in the management. Originality/value The findings of the study are unique and original because literature examining ethical climates and trust is scarce, and this is the first study to explore how ethical climates can impact trust in management in the Indian context. In particular, the results are unique for. Contrary to expectations, no negative impact of climates of self-interest, company interest and independence on trust in management could be seen in this study. The results throw open new directions to theory building on ethical climates and trust in the Indian context.