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Graduate student and faculty perceptions of the ethical climate and its importance in the retention of students were investigated at a midwestern metropolitan university. The subjects included 159 graduate students and 52 faculty members from five major areas within the College of Education. The subjects' perceptions of the ethical climate were measured by the Ethical Climate Index (ECI). There were differences between student and faculty perceptions of the ethical climate for four of the five academic areas. Results of the study indicated that a positive ethical climate is perceived by faculty and students to be important in the retention of students within graduate academic programs. Administrators and faculty members should consider the ethical climate as an important factor in retaining graduate students within academic programs.
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