Building blocks of good governance: Fostering an ethical work climate in public sector organizations

Abstract Promoting an ethical work environment in public‐sector organizations is crucial for good governance, particularly in developing countries that face internal and external pressures to modernize their public service and combat corruption. This study examined the mechanisms by which an ethical environment in public‐sector organizations is enhanced by investigating the role that employee public service motivation (PSM) as well as ethical leadership plays in the workplace. Utilizing first‐hand data collected in 2022 through a survey of public employees working at the Jordanian ministries and public sector agencies, the study showed that public employees in Jordan enjoy a high level of PSM, which was positively correlated with an ethical work environment. This relationship was, however, improved when mediated by ethical leadership, indicating the importance of ethical leadership as an organizational intervention to promote a more ethical workplace. The implications, contributions, and limitations of the study were further discussed.