THE IMPACT OF ETHICAL CLIMATE ON CORPORATE SOCIAL RESPONSIBILITY AND ORGANIZATIONAL COMMITMENT AMONG CHRISTIAN HEALTHCARE PROVIDERS

Grace C. Chi

Jerry L. Chi

Andrews University

ABSTRACT

The purpose of this Structural Equation Model (SEM) analysis is to examine how the

Christian hospitals’ internal organizational ethical climates impact employees’ shareholder and

stakeholder views of corporate social responsibility, which can then enhance their Organizational

Commitments. The results showed that full-time employees of the Metroplex Adventist Hospital

and Central Texas Medical Center perceived high level of Christian hospitals’ ethical climates in

three dimensions: Benevolent, Principled, and Egoistic (mission driven), which are positively and

highly conducive to the broader Stakeholder view of Corporate Social Responsibility and

contradictory to the narrower self-centered Shareholder (CSR) view. The support of broader

Stakeholder view and opposition of shareholder view resulted in a strong organizational ethical

climate, which are significantly correlated with direct and indirect effects on the high level of

organizational commitment among these two Christian hospitals. Some of the most significant

demographic variables to affect the perceived ethical climate, social responsibility views and

organizational commitment levels include years of service, income, race, gender and age. In

terms of organizational commitment, the findings showed that there are no racial differences in

making strong commitment toward the Christian hospitals.

Keywords: Perceived ethics climate, corporate social responsibility, organizational commitment