Following community norms or an internal compass? The role of prospective leaders' social category membership in the differential effects of authentic and ethical leadership on stereotype threat.

Increasing racial diversity in organizations remains a challenge, as stereotype threat undermines the performance and career aspirations of minority group members during job recruitment. The present study examines how prospective leaders can leverage their influence on their followers' identities to mitigate the stereotype threat Black individuals face in this context. We explore the effects of two moral leadership styles (ethical vs. authentic) on stereotype threat in the context of recruitment. Specifically, we investigate whether prospective leaders' ingroup status moderates the relationship between ethical versus authentic leadership styles and candidates' stereotype threat during the selection process and candidates' willingness to join the organization. To this end, we conducted four experiments with Black residents of Brazilian favelas (impoverished neighborhoods), two of which included real-world job recruitment processes and physiological measures of stress (i.e., salivary cortisol and blood pressure). The results indicate that when the prospective leaders are from the outgroup, displaying ethical leadership by relying on community norms is more helpful in reducing Black candidates' threat and, in turn, promotes willingness to apply for the job. In contrast, when the leader is from the ingroup, displaying authentic leadership by emphasizing the importance of an internal moral compass is more helpful in reducing threat, and this effect is mediated by the identity process of inclusion of the leader in the self. Overall, the present study suggests that prospective direct supervisors have the critical ability to reduce stereotype threat, which can negatively affect Black applicants and their desire to join organizations. (PsycInfo Database Record (c) 2024 APA, all rights reserved).