Organizational Ethical Climates And Business Satisfaction (A Study Of Umkm In South Sulawesi)

Abstract

Organizational ethics play an important role in shaping a good climate for all members of the organization. These ethical points in question include social issues, protection of employee rights, the society (social responsibility) and consumers. The implementation of ethics in an organization improves employee satisfaction (see the organizational justice theory and cognitive dissonance theory). By taking the research objects on 350 Small and Medium Enterprises businesses in three districts namely Luwu Timur, Bone and Toraja in South Sulawesi, this research was analyzed by using Multiple regression method. This research focused on three dimensions of ethical climate egoism, benevolence, and principle. The research showed that organizational climates such as egoism and benevolence did not show positive results on employee satisfaction. However, the coefficient of egoistic ethical climate influence was negative for job satisfaction, whereas the principled ethical climate showed positive and significant influence on employee satisfaction.