Investigating the Impact of Ethical Organizational Culture on Employee Retention

Abstract

Employee retention remains a critical challenge in the hospitality sector, where high turnover can undermine service quality and organizational performance. This study investigates the influence of ethical culture on employee retention by examining four key dimensions: ethical leadership, perceived fairness and justice, ethical policies and enforcement, and corporate social responsibility (CSR) toward employees. A structured questionnaire was administered to 118 employees across hotels and travel agencies, and data were analyzed using multiple regression techniques. The findings confirm all four hypotheses, demonstrating that ethical leadership, fairness and justice, ethical policies, and CSR significantly and positively affect employees' intentions to remain in their organization. These results highlight the strategic role of ethical culture in fostering workforce stability and enhancing organizational performance. The study provides practical guidance for hospitality managers to strengthen ethical practices, implement fair policies, and engage in CSR initiatives that increase employee commitment.

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