The impact of ethical climate on job satisfaction, and commitment in Nigeria: Implications for management development

The purpose of this paper is to examine the impact of ethical climate on job satisfaction and organizational commitment in Nigeria, and to discover the extent to which unethical practices among managers have impacted upon managerial practices in Nigeria.

The study followed a descriptive research design using survey methods with statistical treatment. Using the business directory of companies in Nigeria, a sample of 409 managers was drawn using a systematic random sampling technique. Multiple regression analysis and Pearson's product moment correlation were used to assess the influence of ethical climate types on job satisfaction and organizational commitment.

The findings revealed that there was a relationship between organizational ethical climate and facets of job satisfaction. It was also found that ethical climate types explained 58 percent of the variation in overall job satisfaction. Also, the correlation between ethical climate types and organizational commitment was positive and significant. This implies that favorable organizational ethical climate would encourage commitment and job satisfaction.

This research is limited to four business enterprises – banks, manufacturing, transportation, and construction companies. Thus, the results cannot be generalized to other industrial sectors that were not part of this study. In addition, the assessment of job performance and productivity are beyond the scope of this study.

The paper offers practical suggestions of how management can improve job satisfaction and organizational commitment by improving the ethical climate of the organization.

The paper examines the impact of ethical climate on job satisfaction and organizational commitment in Nigeria, a sub‐Saharan African country in a sub‐continent that has been neglected and under‐researched. The study draws management practitioners' attention to the fact that they should adopt behavior that can help to improve employees' ethical behavior. From an academic perspective this study provides insight into the relationship between ethics, job satisfaction, and commitment, which should contribute to the future development of this line of research, particularly in developing countries like Nigeria. Furthermore, this topic has not been tested empirically in Nigeria. Therefore, the present study is of significant value to practitioners and scholars alike.