Ethics was identified by the Ethiopian government as one of the areas requiring attention and was made an integral part of the ongoing Civil Service Reform Program since 1996. Despite the reform efforts that have been going on for about two decades, no rigorous academic and empirical research has been conducted to understand the nature and depth of the problems. Moreover, the theoretical discourses in the general literature and the national efforts made by the government and its development partners also emphasize on the structural and procedural issues of ethics, giving little focus to the behavioural components or dimensions of ethics of civil servants. The purpose of this study was to investigate and critically analyse the nature and dynamics of work ethics in the Ethiopian civil service; and to assess the ethical environment within which the public sector operates in the country. Mixed research method was applied. Questionnaires were used to collect primary quantitative data from two groups of research participants – civil servants and the service users; whereas primary qualitative data were collected employing in-depth interviews from managers and key experts in the field. Data from secondary sources were also used. The quantitative data were analysed using descriptive analysis. The qualitative ones were analysed using the qualitative data analysis technique with the emphasis on the phenomenological approach. The study showed that there is clearly growing awareness of ethical challenges within the civil service, though a fundamental change in the ethical conduct of the employees is not yet realized. It is also found out that there is no problem of legislation and policy frameworks; rather the problem lies in the weak implementation and enforcement of them. Leadership behaviour, absence of strong institutions, poor accountability system, poor remuneration and politicization of the civil service were identified as the biggest challenges to foster ethical conduct. Accordingly, it is suggested that the government play a key role in addressing the problems that hamper the effective implementation of the reform efforts. Other stakeholders such as the civic society organizations, religious institutions, the private sector, schools and the general public should also work closely with the government. Ensuring ethical conduct requires synergy of all actors, ranging from ordinary citizens to high-level decision-making bodies. / Business Management / D.B.L.