The Rise of the Emotionally Intelligent Enterprise

The last 18 months have transformed how companies conduct business. As movements like the global walkouts at Google have pushed corporations to adopt new policies, businesses that once prioritized sales and revenue are beginning to realize the importance of taking a stance on issues such as harassment and bigotry. In an age where authenticity and accountability are key, empathy has emerged as a driving force for business success.

However, with sexual harassment lawsuits and global anger at record highs, companies must actively demonstrate to consumers and employees that they care. Today, employees and customers expect businesses to articulate their positions on major social issues. Many companies have responded with well-intentioned PR statements about their corporate culture and policies, but the bar has been raised significantly. Customers and employees often feel that companies fail to gauge their emotions and are frustrated by statements that lack follow-through. To address consumer anger and mitigate reputational risks, companies need to showcase emotional intelligence, not just a political stance.

What is an Emotionally Intelligent Enterprise?

Typically, the concept of "emotional intelligence" in an organization is associated with human resources, marketing, and customer experience departments, which contribute to the emotional fabric of a company both internally and externally. While initiatives such as trainings, workshops, PR statements, and CSR efforts reflect emotionally invested organizations, they often lack a crucial component of enterprise risk management today: data-driven emotional intelligence.

Businesses today operate in a world of "tribes," where the lines between acceptable and unacceptable behavior constantly shift, and toxic behavior can quickly move online. These shifting social conditions increase unforeseen vulnerabilities for businesses. As consumer activists demand change and become more discerning in their decisions, any distasteful action or tweet from within an organization can be weaponized against a company with unprecedented speed. Therefore, emotional intelligence is no longer a "luxury" for organizations with strong cultures; it's a necessity for any business looking to defend against new threats.

By gauging the internal sentiments and attitudes of their workforce, emotional intelligence not only helps maintain a healthy culture but also aids in fulfilling brand promises in an increasingly complex and risky environment. This approach transcends even the best training programs, policy changes, and post-crisis PR statements. Given that people in your company lead complex lives and interact within intricate networks, the only way to mitigate risks and keep your company out of the headlines is through a thoughtful data-driven approach.

For this reason, diversity and inclusion initiatives and other socially-oriented stances remain important but are no longer sufficient to keep businesses safe. As the world fragments into tribes and every employee becomes a potential PR tool and target, companies must listen closely to their customers while orchestrating data to eliminate toxic behaviors and ensure satisfaction and brand value. Emotional intelligence empowers companies to be insightful and empathetic rather than self-justifying, striking the tone that consumers have been seeking.

What steps are you taking to enhance your organization’s emotional intelligence? Remember, the only way to reliably safeguard against consumer backlash today is to understand how the people in your organization interact with the world around them.