From Help to Harm: Increases in Status, Perceived Under-Reciprocation, and the Consequences for Access to Strategic Help and Social Undermining Among Female, Racial Minority, and White Male Top Managers

Abstract

This paper explores how social psychological biases impede the social exchange relations of executives who ascend to high-status corporate leadership positions. We theorize that a combination of self-serving attribution biases among executives who gain status and egocentric biases of their prior benefactors cause a systematic difference in perceptions about the relative importance of that help to the beneficiary’s success. This leads to the perception among prior benefactors that the high-status executives have not adequately reciprocated their help. We then extend this argument to explain why perceptions of under-reciprocation are heightened when the high-status executive is a racial minority or a woman but reduced when the prior benefactor is a racial minority or a woman. The final element of our theoretical framework examines the social consequences of perceived under-reciprocation for corporate leaders. We suggest that the high-status leaders’ access to strategic help is reduced, and they may become the target of social undermining that can damage their broader reputation. The findings support our social psychological perspective on social exchange in corporate leadership, revealing how and why executives who have ascended to high-status positions not only may encounter difficulty obtaining assistance from fellow leaders but also may experience adverse reversals in their social exchange ties such that managers who previously aided them engage in socially harmful behavior toward them.