Management researchers have recently shifted their focus to examine the effects of psychological diversity climate (PDC). Whereas the majority of this research has focused on front-line employees, we shift our attention to personnel in leadership positions to extend this literature. On the basis that PDC encourages the demonstration of fairness and discourages the demonstration of mistreatment, we rely on social information processing theory to explain why supervisor perceptions of PDC impact supervisory leadership style. Across three studies (one experiment and two multi-source field studies), we find that supervisor perceptions of PDC are positively related to employees’ evaluations of ethical leadership and negatively related to employees’ evaluations of abusive supervision. We also find that the impact of supervisor perceptions of PDC on ethical leadership and abusive supervisor is accentuated when supervisor negative affectivity is relatively high compared to relatively low. However, the impact of supervisor perceptions of PDC on ethical leadership and abusive supervision is attenuated when supervisor conscientiousness is relatively high compared to relatively low. In summary, our studies clarify why and when supervisor perceptions of PDC interact with supervisor characteristics to impact supervisory leadership style. Theoretical and practical implications are discussed.

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