Procedural justice, ethical climate and service outcomes in restaurants

The literature suggests that ethical climate may actually contribute to organizational success by enhancing employee performance. Ethical climate is considered to be highly relevant to the hospitality industry, since it enhances service-providers’ contact with customers. This study reinforces previous researches by exploring the relationships between ethical climate, service, and customer satisfaction in restaurants. We have also examined the relationship between ethical climate and the fair treatment of employees by an organization. The study was conducted in 20 restaurants, with 171 employees and 103 customers. Data were obtained from employees, customers, and “mystery shoppers”. As expected, ethical climate was found to be related to service performance which, in turn, was found to fully mediate the relationship of ethical climate with customer satisfaction. Ethical climate was also found to correlate positively with procedural justice. Our results indicate the benefits of the ethical message conveyed through consistent managerial practices in service organizations.