Financially insecure and less ethical: Understanding why and when financial insecurity inhibits ethical leadership

With the recent COVID-19 pandemic, among other crises (e.g., Russia–Ukraine conflicts and recession projections) threatening organizations’ financial conditions across globe, supervisors may not only encounter challenges such as job cuts that test their ethical leadership, but also experience insecurity themselves. However, our knowledge of why when supervisors’ leadership behaviors be affected in a situation remains quite limited. In this research, we draw on uncertainty management theory (UMT) to examine potential influence leadership. Specifically, suggest triggers anxiety supervisors, which inhibits demonstration We propose organizational pay fairness boundary condition for process, who perceive fair are less susceptible resulting from than those unfair. Results two multi-source, multi-wave studies supported hypothesized model. conclude by discussing theoretical practical implications findings.