Abstract
This study examines how ethical climates become lived moral experiences within faith-based organisations (FBOs). Integrating ethical climate theory with cultural value orientations, we theorise that individual values shape perceptions of ethical climate mechanisms, which in turn influence moral commitment through perceived organisational impact. Survey data were collected from 224 members of a large FBO and analysed using partial least squares structural equation modelling (PLS-SEM) with 5,000 bootstrap resamples. Results show that communitarian and universalistic values are positively associated with perceptions of participatory ethical climate and governance legitimacy, while ascription values undermine perceptions of growth-oriented ethical climate. Among the climate mechanisms examined, participatory ethical climate emerges as the strongest predictor of perceived organisational impact. Perceived impact, in turn, strongly predicts engagement and psychological ownership. The study advances ethical climate theory by conceptualising ethical climate as culturally embedded and relational, and by identifying perceived impact as a key mechanism linking ethical environments to deeper commitment outcomes. Practically, the findings suggest that leaders in value-driven organisations must prioritise participation, legitimacy, and meaningful member voice if ethical claims are to translate into sustained moral commitment.