Exploring the impact of corporate ethical values on organizational commitment: do trust in managers and employee well-being play a role?

Purpose This study aims to explore the mediating and moderating roles of trust in managers and well-being at work in the relationship between corporate ethical values and organizational commitment. Design/methodology/approach This study surveyed 218 employees from a regional bank in Semarang, Indonesia, using covariance-based structural equation modeling using SPSS AMOS 21 to examine the relationships between corporate ethical values, trust in managers and organizational commitment, as well as the effects of trust in managers and employee well-being. Findings This study found that corporate ethical values are positively correlated with both organizational commitment and trust in managers. However, trust in managers did not significantly influence organizational commitment, and employee well-being did not moderate the relationship between corporate ethical values and organizational commitment. Research limitations/implications This study is limited by its focus on the banking sector, the complexity of the reciprocal relationship between ethics and organizational commitment and the need for additional control variables like age and job position to improve the understanding of exogenous factors affecting employee commitment, suggesting that future research should incorporate diverse sectors and a broader set of variables for more comprehensive insights. Practical implications Organizations can enhance organizational commitment by emphasizing the implementation of ethical values. Clear distinctions between ethical and unethical behaviors can help prevent fraudulent activities and promote a positive workplace atmosphere. Originality/value This research provides new insights into how corporate ethical values directly impact organizational commitment, showing that trust in managers and employee well-being do not significantly influence this relationship, emphasizing the direct importance of ethical practices.