The theme of this study revolves around the ethical approach of the top management and ethical climate of the organizations which directly or indirectly influence the job-related attitudinal behaviour of employees. In this article, an attempt is made to explore whether ethical leadership in Indian context impacts the ethical climate and perceived satisfaction of employees. The study also analyzes the meditating effect of ethical climate upon the relationship of ethical leadership and managerial satisfaction. This research study employed a quantitative method using a cross-sectional survey design to assess the effect of ethical leadership on the organizational ethical climate and managerial satisfaction. A non-probability, convenience sample was obtained from this population group and was based on accessibility. This study used internal consistency reliability, Pearson correlation and hierarchical regression as statistical techniques. The following research study examined the potential of ethical leadership to foster the levels of ethical climate and found that ethical leadership acts as an antecedent of ethical climate. Further, the employees led by highly ethical leaders reported highly satisfied, and moderating effect of ethical climate also found positive. Generalization of this study's results to circumstances in other countries may not be possible because the target population was employees in Indian corporations. The study is helpful in addressing the gap of empirical analysis in relation with ethical leadership, ethical climate and in managerial context in the Indian service sector corporations.
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