Impact of Ethical Climate on Organizational Citizenship Behavior in Small and Medium Enterprises in Pakistan

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.