Abstract
Objectives: This study aims to explore disparities in leadership behaviour in a multicultural workplace and its impact on employee morale and organisational performance. Theoretical Framework: The study is underpinned on Social Identity Theory and Cultural Intelligence. This theories provides a ground to explaining group-based biases and favoritism, as well as the competencies required for effective leadership in diverse environments. Method: The study employs a case study approach, analyzing the professional relationship between two individuals in a multicultural organization. It examines real-life instances of selective empathy and favoritism to provide insights into cross-cultural leadership dynamics. Results and Discussion: The findings revealed significant disparities in leadership practices, with selective empathy and favoritism negatively affect employee morale and organizational trust. The study discusses the implications of these practices on employee turnover and organizational productivity, emphasizing the need for inclusive and culturally intelligent leadership. Research Implications: The study underscores the importance of fostering inclusive leadership and enhancing cultural intelligence to mitigate biases and foster equity in multicultural workplaces. These findings are also critical for organizations aiming to achieve diversity-driven growth. It also aligns with SDG 8 on decent work and economic growth. Originality/Value: This study contributes to literature on cross-cultural workplace. It brings a unique perspective on the darker facets of leadership within multicultural settings while providing actionable insights for leaders and organizations to navigate cultural disparities effectively.