As part of comprehensive research on the ethical climate in the Serbian tourism industry, this study examines the effects of selected predictors (job department, individual values and employees’ perspective) on the perception of ethical climate types as well as the relationship between the type of ethical climate, and job satisfaction. Additionally, this study tests these goals for both managers and their subordinates. Research was conducted in 2013, on a sample of 258 employees in different small and medium tourism organizations in Serbia. The findings revealed new information on both ethical climate and job satisfaction-related factors in small and medium tourism enterprises in a non-Western, transitional economy, where ethical behavior is influenced by constant social and economic changes. Several theoretical and managerial implications and future research opportunities were derived from the findings.