Navigating ethical decision-making in digital transformation: ethical climate, digital competence, and person-organization fit in China’s banking sector

In the context of rapid digital transformation, Chinese commercial banks face growing pressure to uphold ethical standards while adopting advanced technologies. This study explores the factors shaping employees’ ethical decision-making intentions in this setting. Grounded in Person–Environment Fit Theory and Ethical Decision-Making Theory, it examines how ethical climate and digital competence influence ethical intentions, and how person–organization (P–O) fit mediates these relationships. Drawing on a two-wave survey of 678 bank employees, the study finds that P–O fit plays a pivotal mediating role in linking ethical climate and digital competence to three types of ethical decision-making intentions: procedural, relational, and innovative. A supportive ethical climate enhances P–O fit by aligning organizational and individual values, while higher digital competence enables employees to manage the complexities of digital work environments. Moreover, P–O fit significantly amplifies the effects of ethical climate and digital competence across all dimensions of ethical intent. Moderating analyses show that organizational digital ethical culture and employees’ educational levels further shape these dynamics. This research contributes new insights by positioning digital competence as an ethical capacity, not just a technical skill, and by proposing an integrated framework connecting digital ethics and person–organization alignment. The findings provide theoretical and practical implications for promoting ethical conduct in digitally evolving organizations.