While much is understood about the role of the family context and educational experiences for moral development, less attention has been devoted to the occupational context. In this research, we used Kohlberg's approach of moral education as a framework and investigated the relationship between structurally anchored organizational democracy and employees' moral development. Employees (N = 285) of five conventional (i.e., traditionally owned and hierarchically managed) and five democratic (i.e., collectively owned and democratically managed) enterprises participated in our study. Consistently with our theoretically derived hypotheses, the results provide initial support for the theoretical model in that employees from democratic firms scored higher on moral development than employees from conventional firms. In turn, contrary to our expectations, the socio-moral climate within organizations failed to explain variance in moral development. Theoretical implications of our findings as well as suggestions for future research are discussed.