The issue of unethical behavior in business is a serious concern with practitioners and researchers. The restaurant industry in particular, is vulnerable to unethical actions due to a variety of variables including the availability of large sums of cash, the presence of alcohol, and the late hours of operation. There is a paucity of ethical research in the restaurant industry and this study contributes to that body of knowledge; In this study, the effect of ethical climate in the restaurant industry on ethical optimism and organizational commitment was examined in ten restaurants. The results show that management actions have significant direct effects on ethical climate and organizational commitment and significant indirect effects on ethical optimism
