Introduction(Objectives): To institutionalize an ethics-based culture in universities, methods must be used to internalize ethical values among faculty members. The aim of this study is to develop a model for institutionalizing ethical and behavioral codes among faculty members of Iranian universities.

Method: This fundamental research was conducted in 2021. The target population was university faculty members, and using the snowball sampling method along with semi-structured interviews, 16 online interviews were conducted with faculty members from Iranian universities. Each interview was analyzed using MAXQDA software (version 2020), and initial coding was carried out based on the Grounded Theory method with the Glaser and Strauss approach. Codes were categorized, and then the final model was extracted.

Findings: The categories of the developed model include: ethics-based selection and recruitment of faculty members in universities (Central Phenomenon), effective social context and necessary resources for fostering ethical individuals (Causal Conditions), ethical-based rules and regulations in higher education culture (Intervening Conditions), cultural, social, and economic infrastructures (Contextual Conditions), implementation of educational and developmental programs in universities (Strategies), and implementation of systematic, ethics-oriented systems in the field of faculty promotion and performance management in higher education (Outcomes).

Conclusion: The proposed model indicates that the institutionalization of ethics in academic settings is not solely the responsibility of higher education institutions. Rather, moral education begins within families and society. Furthermore, necessary economic and social infrastructures—such as job security and academic freedom—play a significant role in embedding ethics within the culture of higher education.