Abstract:
Small Medium Enterprises are effective tool to eradicate poverty in a developing country like
Pakistan where unemployment is a major issue. The role of small corporations has increased
due to globalization and knowledge base economy. A gap exist that is to be investigated
regarding the impact of ethical climate on firm level on collective OCB although numerous
research have been done at individual level in big firms. The undertaken study tries to explore
the impact of ethical climate on OCB. Our study is an exploratory study to implement this idea
in SMEs. Although previous studies suggest concerning ethical climate having an optimistic
relationship with OCBI and OCBO. On the other hand, insufficient information has explored
the impact of CEO ethical Leadership to promote ethical climate due to ethical culture. Our
undertaken study also tries to explore the role of Climate strength to strengthen the role of
OCBI and OCBO. Some researchers suggest that some types of Climates like caring, rules, law
and code have positive impact on OCBI and OCBO. Moreover, Independence and instrumental
have negative impact on OCB. Some studies suggest that caring type of climate carry positive
relation with organizational citizenship behaviour. While on the other side, of the Facets of
OCB also has a negative and no important relationship with ethical climate. The undertaking
study will theoretically contribute in business ethics literature by exploring the impression of
CEO ethical Leadership on promotion of ethical culture consequently, ethical climate will
promote the OCB at firm level which will enhance the performance of firms. The Climate
Strength is a novel concept in Business ethics literature. Which plays a vital part in
strengthening the ethical climate and prompting confident bond among ethical climate and
OCB.
