There is an augmented interest in the business ethics for the past ten years. This escalating interest and desire to understand better ethical performance and decision making led to the development of many models research hard work especially about the ethical environment and ethical cultural concepts. Many models concerning these concepts refers that ethical environment in effected by the individual characteristics and appropriate factors like values, codes, rules, organizational form etc. One of the most important factors in the organization explicit factors regarding ethics is leader behavior because leaders are seen accountable for motivating moral values and ethical standards in their subordinates (Dickson et al., 2001; Trevino et al., 1998). Leaders serve as a model for the subordinates in the organization for what type of behavior should be conducted in the organization and how ethical problems and questions should be answered (Nielsen, 1989). There is a strong relationship between ethical environment and leader conduct but there is no effort to analyze the relationship between paternalistic leadership and ethical climate. Paternalism is a socio-cultural characteristic of Middle Eastern and Latin American culture and it is argued that paternalistic conduct is very common in the organizational framework and it support to develop the humanize and renormalize the work place (Aycan, 2001). Paternalism is a ubiquitous cultural attribute of conventional eastern societies like China, Japan, India, and Korea (Aycan, 2001).
Some of the cultural assumptions that are compatible with paternalism which are collectivism, high power distance, high uncertainty avoidance, masculinity, (Hofstede, 1980) assertiveness and diffuse culture. In accordance with the research conducted by the Aycan among 10 countries paternalistic characteristics are observed in India, Pakistan, China and Turkey. Power distance and collectivism are prevalent culture assumptions that are
Found in these countries (Aycan and Kanungo, 2000).
It is not proved that ethical environment also persuade employee performance and attitudes such as job contentment, performance, organizational dedication and dedication to equality there is very little research on the ethical environment and organizational dedication (Cullen et al, 2003; Victor and Cullen, 1987). Schneider (1975) defined ethical climate as the stable, psychologically meaningful perceptions which the members of an organization hold concerning ethical procedures and policies existing in their organization and departments.
Globalization fetch cultural differences, long-term relations necessitate comprehensive information of shared communal values.(Etzioni, 1988; Olson, 1965, 1982), in malevolence of huge quantity of literature on set of connections of management(Burt, 1992), and different issues like group ownership, exchange of knowledge etc have not sufficiently carefully considered in management. These...