In a world where corporate success is often quantified by stock prices and profit margins, a transformative shift is occurring within business education. Institutions are increasingly recognising Emotional Intelligence (EQ) and empathy are not mere "soft skills," but fundamental components of sustainable, socially responsible, and ultimately, successful business models. This evolution is evident in curricula ranging from undergraduate courses to Executive MBA programs, where people-centred leadership is now prioritised alongside traditional subjects like finance and marketing.
A stark illustration of low EQ in leadership emerged when a prominent global figure abruptly froze critical aid to foreign nation. This decision, seemingly driven by ego or unilateral action, disregarded the profound human consequences. This event reverberated through diplomatic and humanitarian circles, underscored a crucial truth: wealth and power do not automatically equate to wise, empathetic decision-making. Instead, it serves as a stark reminder of the potential damage when leaders lack emotional intelligence to consider the broader impact of their actions.
Business schools are re-evaluating their role in shaping future leaders. They understand that EQ is integral to leadership, influencing everything from team dynamics to strategic decisions that affect entire communities. Emotional intelligence, encompassing self-awareness, empathy, effective communication, equips leaders to navigate complex interpersonal and societal challenges. When cultivated, these traits foster humane decision-making that considers the well-being of employees, consumers, and wider community.
Recently, I had the privilege of introducing Design Thinking, particularly its "Empathise" phase, to enthusiastic business students. Sharing real-life insights from my work, illustrated how aligning theory with genuine compassion can spark innovative, people-centred solutions. Witnessing these future leaders embrace empathy as a core business principle was profoundly inspiring.
My experiences resonate the teachings of Psychotherapists Carl Rogers, person-centred therapy emphasises unconditional positive regard and empathy. Rogers believed that genuine understanding and acceptance are essential for meaningful transformation, whether in a therapeutic setting or within an organisation. Integrating these principles into business education fosters a culture where companies view employees, customers, and stakeholders as individuals with unique challenges and aspirations, rather than mere data points.
My hands on experience working with survivors of sex trafficking underscored the profound power of empathy. Engaging with individuals who have faced unimaginable trauma revealed that business frameworks and analytical tools, while valuable, have limitations. To enable someone, rebuild their life, or to create products and services that meet genuine needs, understanding their experiences, motivations, and fears is paramount.
My involvement in an Executive MBA program, particularly through Design Thinking, reinforced these ideas. Design Thinking begins with empathising, immersing oneself in the user’s experience to truly grasp their needs. This approach mirrors Rogers’ emphasis on empathy as a cornerstone of personal growth and aligns with my experiences counselling survivors. The synergy between academic theory and practical, on-the-ground experiences profoundly shapes how we approach business challenges.
This shift signifies a move from profit maximisation to a holistic view that includes social impact. Companies are increasingly recognising the value of ESG (Environmental, Social, and Governance) principles. Leaders with high EQ are more attuned to the needs of marginalised communities, the environment, and the broader social fabric. This is crucial as business decisions, from resource allocation to product design, significantly impact lives.
Initiatives set up by Arz of WISH (Women Initiative for Self Help), a collective of sex trafficking survivors empowering others, exemplify empathy and social responsibility. WISH provides counseling and support, enabling survivors to rebuild their lives. These initiatives require the support of businesses and leaders who understand the importance of giving back.
Supporting such initiatives is not merely charity; it’s an opportunity for businesses to lead by example, demonstrating empathy and emotional intelligence. Partnering with organisations that uplift marginalised communities demonstrates that success extends beyond financial gains to include positive societal impact.
Imagine a world where businesses actively contribute to initiatives like WISH, leveraging their resources to create meaningful change. Such collaborations bridge the gap between profit maximisation and social impact, proving that businesses can be both successful and socially responsible.
When young minds cultivate EQ, it offers hope for a future defined by sensitivity and responsibility. This does not mean discarding financial accountability, but broadening the scope of success. This vision is not utopian. The growing emphasis on ESG reporting, consumer demand for ethical products, and investor interest in social impact funds indicate a future where empathy and EQ are recognised as strategic assets. By championing these values, we create business landscape where the question is not just “How much profit?” but “How many lives improved?”
The transformation has begun. My experiences, both in the classroom and with survivors, confirm that empathy and EQ are key to inclusive, sustainable business. The enthusiastic response from students, growing research on EQ, and global conversations around social responsibility reinforce this: EQ is a necessity for modern leadership. Initiatives like WISH demonstrate that businesses can transform lives, a collective responsibility.
Let us inspire the next generation to lead with empathy, support stigmatised communities, and redefine success. Together, we can create a world where business is a force for good, with empathy at its core.
The authoris a professional social worker at Arz NGO combating sex trafficking. She is a co-founder of WISH and a Ford Global Fellow.
