Why empathy in business is vital

Illustration: TBS

Empathy plays a crucial role in the realm of business for several reasons. 

On a daily basis, individuals share their various experiences with various organisations, both public and private, profit and non-profit, governmental and non-governmental, in receiving services as customers, consumers, clients, audiences or as stakeholders and target group members. 

All these people living in different cultures in different countries are part of the service recipients of various organisations in the service sectors. This encompasses a wide range of interactions, from individual to individual to organisation-to-organisation.

To be successful, many of these organisations are now committed to rendering services to the people and giving more attention to building an empathy culture in their organisations. Corporate culture and corporate social responsibility are, in fact, the results of such commitments. 

Besides multinational companies, international agencies, development organisations and many government organisations have also started incorporating empathy training for their employees of different ranks to change their mindset and develop strategies towards giving better services to their target groups. 

Empathy has been a part of business for more than 100 years. It started to resolve various conflicts in different industries followed by worker revolts in Chicago's Haymarket on May 1, 1886.

The origin of 'empathy in business' 

Following a workers' revolt in Chicago in 1886, a strike for improved wages, better working conditions and union recognition erupted into violence on 20 April 1914 at the Rockefeller-controlled Colorado Fuel and Iron Company (C&FI) in southern Colorado took place when state militia and company police opened fire on the miners' tent camp. 

This incident sometimes referred to as the "Ludlow Massacre," took place during a highly compressed time of rapid industrialisation in the United States (1880–1920). 

Several people were killed in the clash, including two women and 11 children who suffocated in a pit dug under their tent during a firestorm. John D Rockefeller Jr was publicly blamed for the deaths, a situation that appears to have haunted him for many years afterwards.

The prosperity of the 1920s encouraged more progressive business leaders to advocate for a regime of industrial welfare as a means to ameliorate workplace strife and achieve peace that would facilitate higher productivity and profits. This was the early form of "welfare capitalism," which engaged corporations in providing for the well-being of each company's employees and their families.

John D Rockefeller, Jr. was one of the leading proponents of industrial welfare policy. A memorial fund of $21 million was created by the Rockefeller Foundation to do research on several industries with the engagement of some famous anthropologists. Half of the funds went to five highly ranked institutions: the University of Chicago, Columbia, Harvard, the London School of Economics (LSE) and the Brookings Institution.

John D Rockefeller Jr. asked industry leaders to treat workers as human beings. He said in The Personal Relation in Industry in 1923:

"The relations of men engaged in industry are human relations. Men do not live merely to toil; they also live to play, to mingle with their fellows, to love, and to worship. The test of success of our social organisation is the extent to which every man is free to realise his highest and best self. 

If in the conduct of industry, therefore, the manager ever keeps in mind that in dealing with employees he is dealing with human beings, with flesh and blood, with hearts and souls, and if likewise the workmen realise that managers and investors are themselves also human beings, how much bitterness will be avoided."  

Empathy 'training' and empathy culture 

Empathy is not given. Someone has to work very hard to be empathetic. For an ethnographer, it is learning to surpass cultural shock by obtaining a certain degree of "understanding" about others' norms, values and desires. Empathy has become a sought-after skill, particularly in fields reliant on public perception, such as design, public policy and marketing. 

Companies are now increasingly showing interest in hiring anthropologists or providing empathy training to enhance their ability to understand customer behaviour and improve service delivery. Anthropology, as a discipline, instils a sense of empathy through the daily experiences of researchers in the field, making it a core aspect of their work.

The value of cultural empathy, or empathy culture, has become increasingly important in the last few decades, mostly due to the increase in migration, globalisation and international business. Cultural empathy helps to foster pleasant interactions and working relationships in any organisation. 

For example, if an American and Christian financial consultant decides to work in the United Arab Emirates for a one-year project, he can be successful in establishing personal and business relationships if he is empathetic and considerate of Islamic norms and customs.

IDEO and its idea of empathy

IDEO, a prominent global design and innovation company based in the United States and other six countries, places significant emphasis on empathy as a vital component for organisations seeking growth, influence and agility. They assert that organisations aiming to design the next generation of products, services and experiences should learn about empathy and implement human-centred systems for problem-solving, starting with a focus on people. 

IDEO offers empathy training under their 'Foundation in Design Thinking' course to help individuals gain a deeper understanding of others' perspectives, moving beyond mere intellectual comprehension.

For IDEO, empathy is not only a mental habit but also a fundamental cultural value. By understanding their clients' and customers' experiences, they gain valuable insights that inspire their innovative and responsive designs. However, they acknowledge that some qualities and behaviours that contribute to success in business can hinder the development of empathy.

Empathy in design thinking and business

Empathy is especially critical in design thinking (refers to the set of cognitive, strategic and practical procedures used by designers in the process of designing) and business anthropology. It helps businesses provide customer service and comprehend the internal culture of their organisations. 

As globalisation and population migration continue to increase, cultural empathy becomes essential for working within diverse societies and business environments. Design empathy helps to foresee how a product will most likely perform in a particular market, how a campaign can be more effective considering a specific demographic, or even how a brand should communicate its promise.

For marketing professionals, empathy aids in understanding customers better and predicting product performance in specific markets. Ethnography and qualitative methodologies are utilised to achieve this understanding, highlighting the relevance of business anthropology in acquiring such skills.

Companies that prioritise empathy benefit from better problem-solving, customer relations and innovation. Anthropologists are instrumental in encouraging businesses to adopt a human-centred approach and foster empathy in all stakeholders. This focus on empathy allows organisations to navigate complexity, adapt to diverse user needs and achieve long-term positive impact.

In conclusion, empathy is an indispensable aspect of successful business operations. Companies that cultivate empathy within their workforce experience improved communication, better product development and increased customer satisfaction. Anthropologists, with their expertise in understanding human behaviour and cultural dynamics, play a pivotal role in promoting empathy-driven practises, creating a positive impact on businesses and broader society.

Dr Saifur Rashid is a Professor of Anthropology at Dhaka University. He also teaches Business Anthropology at the Faculty of Business Studies of Dhaka University.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.