Abstract:
In the rapidly evolving landscape of the banking sector, organizational ethical climate
has emerged as a critical determinant of employee performance and workplace
integrity. This study investigates the impact of organizational ethical climate on
employee performance, with a specific focus on the mediating role of organizational
citizenship behaviour in selected banks of Batticaloa Region.
In addition to this, the researcher identified the level of these variables, their impact,
and the relationship between them. While there has been a lack of research conducted
in this area.lJtilizing a sample of 250 banking employees, data were collected through
structured questionnaires and analyzed using SPSS 26.0 Version.
The findings of the study reveal that, the organizational ethical climate, organizational
citizenship behaviour, and employee performance have very high level of contribution.
The findings reveal a significant and strong positive relationship between
organizational ethical climate and employee performance. Moreover, the study finds
that organizational citizenship behaviour partially mediates this relationship,
highlighting employees' voluntary and altruistic behaviours as a key mechanism
through which ethical climate influences performance. The results from the regression
analysis, employing PROCESS 4.0 version, demonstrate that OCB partially mediates
the relationship between organizational ethical climate and employee performance,
explaining 37o/o of the effect.
These findings underscore the importance of cultivating an ethical organizational
climate that encourages citizenship behaviours, thereby enhancing employee
performance. The study provides valuable insights for banking sector
This research contributes to the understanding of how ethical climate and citizenship
behaviour collectively influence employee performance within the banking sector. It
underscores the strategic significance of integrating ethical leadership practices that
encourage OCB, thereby promoting a better employee performance
Keywords: Organizational Ethical Climate, Organizational Citizenship Behaviour,
Employee Performance.
