The Role of Ethical Climate in Service Sector: Organizational Justice, Employee Job Satisfaction and Turnover Intentions

This study was carried out within the hospitality sector in North Cyprus and had two objectives: To investigate the impact of ethical climate on organizational justice, job satisfaction and turnover intention; to test the mediating role of organizational justice and job satisfaction in the relationship of ethical climate and turnover intention. Drawing a sample of 18 businesses from the hospitality sector which included hotels, restaurants and cafés and also based on relevant literature, we developed and empirically examined a model to test the relationship between two (2) major classes of ethical climate and organizational Justice, Job satisfaction and Turnover intention. A total of 145 participants filled out the questionnaires. Hypotheses were tested using Partial Least Squares (PLS). The findings show that general-benevolent and generalprincipled parts of ethical climate have a negative correlation with turnover intention and positive one with organizational justice and job satisfaction. The results also suggest that organizational justice mediates the relationship between ethical climate and job satisfaction; and job satisfaction plays a mediation role between organizational justice and turnover intention. Job satisfaction also mediates the relationship between general-Principled climate and turnover intention and also serves as a partial mediator for the relationship between general benevolent climate and turnover intention. Keywords: Ethical climate, Benevolent-climate, Principled climate, Organizational Justice, Job Satisfaction, Turnover Intention, Hospitality sector, North Cyprus.