Unethical behavior in organizations has attracted much attention among researchers, yet we know little about when and why unethical behavior conducted by leaders that is intended to benefit individuals—leader unethical pro-subordinate behavior (UPSB)—might translate into complex subordinate outcomes. While such behaviors may foster relational gains, they introduce complex psychological dynamics that significantly impact subordinate attitudes and behaviors. Drawing on social exchange theory and attribution framework, this study develops and tests a dual-pathway model to examine how leader UPSB influences subordinate outcomes through two mediators: perceived reciprocal obligation and ethical pressure. The findings reveal that leader UPSB drives employee leader-directed helping behaviors via perceived reciprocal obligation, reflecting subordinates’ sense of indebtedness to their leaders. Simultaneously, leader UPSB generates ethical pressure, leading to employee work withdrawal behaviors as subordinates navigate moral conflicts. Furthermore, the study highlights the moderating role of employee’s self-serving attribution toward leaders, demonstrating that subordinates’ perceptions of leader motives weaken the negative pathway (ethical pressure to work withdraw). These findings contribute to the literature by positioning UPSB as a distinct construct, identifying critical mediators, and emphasizing the role of subordinate attributions in shaping responses to leader unethical benaviors. Practical implications underscore the need for ethical leadership and organizational accountability in mitigating the relational and ethical tensions caused by leader UPSB.
