Nonprofit Employees' Perceptions of Ethical Workplace Climate

ABSTRACT The study investigates the constituents of ethical workplace climate in the nonprofit organization context. Literature suggests that nonprofit organizations' operating principles and propositions are distinct and share unique characteristics in terms of their motives, beliefs, and values. It adopts a qualitative research methodology, employing an inductive‐deductive approach to data analysis. Data were collected through semi‐structured interviews with 74 managers from 30 nonprofit organizations, using the critical incident technique, resulting in 121 incidents and 409 reflective statements. Analysis revealed 12 prominent themes and four reference points, identifying four dimensions of ethical workplace climate: enlightened self‐interest, collegiality, stewardship, and internal legitimacy. The study contributes to the current ethical climate literature by identifying key factors in nonprofits, as perceived by employees. By shedding light on these factors, it enhances the understanding of ethical climate dynamics within nonprofit organizations. Practical implications emphasize the importance of cultivating enlightened self‐interest, promoting collegiality, ethical stewardship, and reinforcing internal legitimacy to enhance the ethical workplace climate.