This article elucidates the relationship between HR systems and ethical climate at workplace with primary focus on the procedure adopted for development of ethical climate, using case study of an Indian power distribution company (Tata Power Delhi Distribution Limited [TPDDL]). The study categorizes TPDDL’s endeavours undertaken into two categories, explicit and implicit initiatives. Explicit ways of promoting ethics include ethics trainings, seminars on ethics, rewards and punishment policy, and mechanism of reporting ethical concerns/issues (ethics portal, whistle blower policy, IVRS, etc.). Implicit ways of creating ethical climate include HR practices, namely selective selection, training for developing interpersonal and technical skills, fair performance appraisal system and various engagement initiatives. The support and guidance of the senior management and line managers ensured successful execution of both initiatives. Results from the study suggest, over the period of time, the untiring efforts of various actors that saw the development of an ethical climate.
