Abstract
Although exploring the dark side of leadership through destructive forms is becoming more popular, more work must be conducted to understand exploitative leadership's theoretical underpinnings and explore its outcomes. Drawing on the conservation of resources (COR) theory and equity theory, the paper investigated whether exploitative leadership affects employees' psychological distress through perceived distributive injustice and how victim sensitivity may act as a moderating factor. Data were collected through survey questionnaires with structured items. This study used a PLS-SEM partial least square structural equation modeling technique to test the hypotheses. The sample consisted of 292 full-time employees from the United States of America from various sectors, including services, manufacturing, and education. The findings affirm that exploitative leadership predicted psychological distress. Results also confirm that perceived distributive injustice significantly mediates the relationship between exploitative leadership and psychological distress, and victim sensitivity moderates the indirect relationship. Organizations should take steps to prevent employee exploitation, prioritize leaders with low, selfish intentions, create a supportive work environment, ensure equitable treatment, and address the adverse effects of exploitative leadership through recruitment strategies and support for workers sensitive to victimization. Discussions on theoretical and practical implications, limitations, and future directions are provided.