The relationship between perceived organisational ethical climate and employee commitment in the Australian hospitality industry

Abstract

The purpose of this study was to determine the relationship between perceived organisational ethical climate and employee commitment within an Australian hospitality organisation, with the objective of determining whether employees' perceptions of the organisational ethical climate influenced their commitment towards their organisation, as well as the associated implications. The Ethical Climate Questionnaire and the Employee Commitment Survey were utilised as measuring instruments. The overall finding revealed a statistically significant relationship between the two variables with the results indicating that organisations possess numerous ethical climates which are perceived by employees in a manner which in turn affects their commitment towards their organisation. It is concluded that employees who are more committed to their organisations have improved attendance records and show lower absenteeism and turnover rates. The findings of this study confirmed existing research and generated new knowledge applicable to the hospitality sector.