This research delved into the ethical decision-making practices among administrators in Catholic diocesan schools and their profound impact on the school’s ethical climate and the morale of employees in the province of Zamboanga del Norte, encompassing the cities of Dipolog and Dapitan. Employing a descriptive method and correlational research design, this study systematically portrayed the characteristics and pertinent details of leaders and employees across five Catholic schools within the Diocese of Dipolog with factual precision. The findings revealed that the prevailing ethical decision-making practices among administrators predominantly revolved around benevolence and principled actions, fostering a caring ethical environment conducive to nurturing a confident and enthusiastic workforce. These ethical practices exerted a moderate influence on the school’s ethical climate, providing substantial support for career development and other opportunities for employees. Conclusions drawn from this study underscored the pivotal role of administrators’ ethical decision-making in shaping a positive ethical climate within schools. Consequently, recommendations were proposed for administrators to embrace optimal ethical decision-making practices. These recommendations aimed to cultivate a moral atmosphere within the work environment, enhancing the ethical standards practiced within schools, and ultimately fostering a more productive and contented workforce.