Impact of ethics, trust, and optimism on performance

Purpose The purpose of this paper is to empirically assess the combined impact of the ethical environment, organizational trust and workplace optimism on individual performance. Design/methodology/approach A structural model is theorized and data from 250 individuals working for private organizations were analyzed using partial-least-squares structural equation modeling. Findings Both the ethical environment and organizational trust positively impact workplace optimism. Of the ethical environment, organizational trust and workplace optimism, only workplace optimism directly impacts individual performance. The impact of the ethical environment and organizational trust on individual performance is indirect through workplace optimism. Research limitations/implications To the authors’ knowledge, this is the first empirical study to assess the combined impact of the ethical environment, organizational trust and workplace optimism on individual performance. It is important to conduct similar studies to verify these findings. Practical implications An ethical environment and organizational trust foster high levels of workplace optimism that in turn lead to improved employee performance. Originality/value The important role that workplace optimism plays within the ethical climate of organizations is theorized and assessed. This is the first empirical assessment of the mediational role of workplace optimism on the established relationships between ethical environment and individual performance, and organizational trust and individual performance.