Abstract This study investigates the effects of workers' perceived participation in democratic decision‐making on their prosocial behavioral orientations, democratic values, commitment to the firm, and perceptions of socio‐moral climate. The sample consists of 325 German‐speaking employees from 22 companies in Austria, North Italy, and Southern Germany that vary in their level of organizational democracy (social partnership enterprises, workers' co‐operatives, democratic reform enterprises, and employee‐owned self‐governed firms). The findings suggest that the extent employees participate in democratic forms of organizational decision‐making is positively related to the firm's socio‐moral climate as well as to their own organizational commitment and prosocial and community‐related behavioral orientations. The results also indicate that socio‐moral climate is positively related to employees' organizational commitment. The effect of participation in decision‐making on organizational commitment is partially mediated by socio‐moral climate. Implications for promoting societal and organizational civic virtues among individuals are described. Copyright © 2009 John Wiley & Sons, Ltd.
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