The ethical climate plays a crucial role in protecting organizations from the negative impacts of unethical employee behaviour. Among the various typologies of ethical climate, the self-interest ethical climate (SIEC) is considered the most detrimental in fostering ethical behaviour, as it contributes to high turnover intention (TI). In contrast, the caring ethical climate (CEC) promotes a supportive culture that enhances employee retention. The entry of Generation Z (Gen Z) into the workforce presents new challenges for companies, as this generation exhibits higher TI than previous generations. This study examines the role of servant leadership (SL) in influencing SIEC and CEC, as well as the mediating role of SIEC and CEC in the relationship between SL and TI. A cross-sectional quantitative method was employed, surveying 314 Gen Z employees in Indonesia. The analysis was conducted using PROCESS Hayes Model 4. The findings indicate that SL significantly predicts SIEC, CEC and TI. Additionally, SIEC predicts TI and mediates the relationship between SL and TI, whereas CEC does not. This study highlights the importance of minimizing SIEC in organizations to improve Gen Z employee retention. However, rather than a high CEC, Gen Z employees are more likely to stay in companies that provide competitive financial rewards.
AliA. N., ShahidS., KanwalM., RasheedQ.-U.-A., & UsmanM. (2022). Impact of ethical leadership and caring work climate on turnover intention of health care professionals mediating role of emotional exhaustion. Pakistan Journal of Medical and Health Sciences, 16(3), 804–806. https://doi.org/10.53350/pjmhs22163804
2.
AruorenE. E., & ErhuenE. P. (2023). Servant leadership and job satisfaction: Mediatory role of perceived organizational support. European Journal of Business and Management, 15(8), 2222–2839. https://doi.org/10.7176/EJBM/15-8-05
3.
BanduraA. (1977). Social learning theory. Prentice-Hall.
4.
BarattucciM., TeresiM., PietroniD., IacobucciS., Lo PrestiA., & PagliaroS. (2021). Ethical climate(s), distributed leadership, and work outcomes: The mediating role of organizational identification. Frontiers in Psychology, 11, 564112. https://doi.org/10.3389/fpsyg.2020.564112
5.
BeatonD. E., BombardierC., GuilleminF., & FerrazM. B. (2000). Guidelines for the process of cross-cultural adaptation of self-report measures,Spine, 25(24), 3186–3191. https://doi.org/10.1097/00007632-200012150-00014
6.
BrohiN. A., JantanA. H., Sobia, AkhtarM. S., & PathanT. G. (2018). Does servant leadership style induce positive organisational behaviors? A conceptual study of servant leadership, psychological capital, and intention to quit relationship. Journal of International Business and Management, 1(1), 1–11.
7.
ChenZ., & TangZ. (2024). The effect of caring ethical climate on employees’ knowledge-hiding behavior: Evidence from Chinese construction firms. Humanities and Social Sciences Communications, 11(1), 318. https://doi.org/10.1s057/s41599-024-02796-x
8.
CozbyP. C., & BatesS. C. (2015). Methods in behavioral research (20th ed.). McGraw-Hill Education.
9.
CullenJ. B., VictorB., & BronsonJ. W. (1993). The ethical climate questionnaire: An assessment of its development and validity. Psychological Reports, 73(2), 667–674. https://doi.org/10.2466/pr0.1993.73.2.667
10.
DengD., YeC., WuF., GuoY., LiH., & WangC. (2023). Effect of organizational ethical self-interest climate on unethical accounting behaviour with two different motivations in China: The moderating effect of Confucian ShiZhong Thinking. Humanities and Social Sciences Communications, 10(1), 525. https://doi.org/10.1057/s41599-023-01995-2
11.
DePassD. (2023, March18). Gen Z job market turnover expected to exceed 2022 levels. The Minnesota Star Tribune. https://www.startribune.com/gen-z-turnover-expected-to-exceed-2022-levels/600259842
12.
DeRueD. S., & AshfordS. J. (2010). Who will lead and who will follow? A social process of leadership identity construction in organizations. Academy of Management Review, 35(4), 627–647.
13.
EvaN., RobinM., SendjayaS., Van DierendonckD., & LidenR. C. (2019). Servant leadership: A systematic review and call for future research. The Leadership Quarterly, 30(1), 111–132. https://doi.org/10.1016/j.leaqua.2018.07.004
14.
GreenleafR. K. (1977). Servant leadership: A journey into the nature of legitimate power and greatness. Paulist Press.
15.
HanseJ. J., HarlinU., JarebrantC., UlinK., & WinkelJ. (2016). The impact of servant leadership dimensions on leader-member exchange among health care professionals. Journal of Nursing Management, 24(2), 228–234. https://doi.org/10.1111/jonm.12304
16.
HaqueA. (2021). Strategic HRM and organisational performance: Does turnover intention matter?International Journal of Organizational Analysis, 29(3), 656–681. https://doi.org/10.1108/IJOA-09-2019-1877
17.
JacobsE., & RoodtG. (2008). Organisational culture of hospitals to predict turnover intentions of professional nurses. Health SA Gesondheid, 13(1), 63–78. https://doi.org/10.4102/hsag.v13i1.258
18.
JagerJ., PutnickD. L., & BornsteinM. H. (2017). More than just convenient: The scientific merits of homogeneous convenience samples. Monographs of the Society for Research in Child Development, 82(2), 13–30. https://doi.org/10.1111/mono.12296
19.
JoeS.-W., HungW.-T., ChiuC.-K., LinC.-P., & HsuY.-C. (2018). To quit or not to quit: Understanding turnover intention from the perspective of ethical climate. Personnel Review, 47(5), 1062–1076. https://doi.org/10.1108/PRs-04-2017-0124
20.
KelleyS. W., & DorschM. J. (1991). Ethical Climate, organizational commitment, and indebtedness among purchasing executives. Journal of Personal Selling & Sales Management, 11(4), 55–66. https://doi.org/10.1080/08853134.1991.10753890
21.
LasslebenH., & HofmannL. (2023). Attracting Gen Z talents: Do expectations towards employers vary by gender?Gender in Management: An International Journal, 38(4), 545–560. https://doi.org/10.1108/GM-08-2021-0247
22.
LidenR. C., WayneS. J., ZhaoH., & HendersonD. (2008). Servant leadership: Development of a multidimensional measure and multi-level assessment. The Leadership Quarterly, 19(2), 161–177. https://doi.org/10.1016/j.leaqua.2008.01.006
23.
MulkiJ. P., JaramilloF., & LocanderW. B. (2006). Effects of ethical climate and supervisory trust on salesperson’s job attitudes and intentions to quit. Journal of Personal Selling & Sales Management, 26(1), 19–26. https://doi.org/10.2753/PSS0885-3134260102
24.
MustamilN., & NajamU. (2020). The impact of servant leadership on follower turnover intentions: Mediating role of resilience. Asian Journal of Business and Accounting, 13(2), 125–146. https://doi.org/10.22452/ajba.vol13no2.5
25.
NaminB. H., MarnburgE., & BakkevigDagsland, Å. H. (2022). The effect of a caring climate on frontline employees’ turnover intention in the service industry: A serial multiple mediation model. Scandinavian Journal of Hospitality and Tourism, 22(3), 235–254. https://doi.org/10.1080/15022250.2022.2047778
26.
OmanwarS. P., & AgrawalR. K. (2022). Servant leadership, organizational identification and turnover intention: An empirical study in hospitals. International Journal of Organizational Analysis, 30(2), 239–258. https://doi.org/10.s1108/IJOA-08-2020-2374
27.
PagliaroS., Lo PrestiA., BarattucciM., GiannellaV. A., & BarretoM. (2018). On the effects of ethical climate(s) on employees’ behavior: A social identity approach. Frontiers in Psychology, 9, 960. https://doi.org/10.3389/fpsyg.2018.00960
28.
PreacherK. J., & HayesA. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40(3), 879–891. https://doi.org/doi:10.3758/BRM.40.3.879
29.
PutriS. D. T., SalenduA., & PahlawanA. W. (2025). Understanding turnover intention in Gen Z: Servant leadership and ethical climate in organization. Asian Management and Business Review, 216–230. https://doi.org/10.20885/AMBR.vol5.iss1.art14
30.
PwC. (2022). Asia Pacific hopes and fears survey 2022. PwC. www.pwc.com/asiapacific
31.
QiL., LiuB., & MaoK. (2020). Spare the rod and spoil the child? A study on employee workplace deviant behavior. Nankai Business Review International, 11(1), 1–22. https://doi.org/10.1108/NBRI-03-2018-0019
32.
RutledgeR. W., & KarimK. E. (1999). The influence of self-interest and ethical considerations on managers’ evaluation judgments. Accounting, Organizations and Society, 24, 173–184. https://doi.org/10.1016/S0361-3682(98)00027-0
33.
SendjayaS. (2015). Personal and organizational excellence through servant leadership. Springer International Publishing.
34.
SendjayaS., EvaN., Butar ButarI., RobinM., & CastlesS. (2019). SLBS-6: Validation of a short form of the servant leadership behavior scale. Journal of Business Ethics, 156(4), 941–956. https://doi.org/10.1007/s10551-017-3594-3
35.
SendjayaS., EvaN., RobinM., SugiantoL., ButarButarI., & HartelC. (2019). Leading others to go beyond the call of duty: A dyadic study of servant leadership and psychological ethical climate. Personnel Review, 49(2), 620–635. https://doi.org/10.1108/PR-08-2018-0285
36.
SheedyE., GarciaP., & JepsenD. (2021). The role of risk climate and ethical self-interest climate in predicting unethical pro-organisational behaviour. Journal of Business Ethics, 173(2), 281–300. https://doi.org/10.1007/s10551-020-04542-0
SyahputraM. J., & HendarmanA. F. (2024). The relationship between key factors and Gen Z employee retention in Indonesian FMCG start-ups. International Journal of Current Science Research and Review, 07(07). https://doi.org/10.47191/ijcsrr/V7-i7-85
39.
VictorB., & CullenJ. B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 33(1), 101. https://doi.org/10.2307/2392857
40.
WestbrookK. W., NicolD., NicolJ. K., & OrrD. T. (2022). Effects of servant leadership style on hindrance stressors, burnout, job satisfaction, turnover intentions, and individual performance in a nursing unit. Journal of Health Management, 24(4), 670–684. https://doi.org/10.1177/09720634221128100
41.
ZhuY., OuyangC., & ChenW. (2022). Spiritual leadership, autonomous motivation and employee craftsmanship spirit: The cross-level moderating effect of caring ethical climate. Psychology Research and Behavior Management, 15, 1971–1988. https://doi.org/10.2147/PRBM.S358107
