Index suggests companies with high empathy also outperform financially

Index suggests companies with high empathy also outperform financially

In a recent article in the Harvard Business Review, the founder of The Empathy Business, Belinda Parmar, discusses the 2016 Empathy Global Index, and how it is relevant to business performance.

The index is a measure of an organization's ethics, leadership, internal culture, brand perception and public messaging via social media, filtered through an empathetic lens. Metrics also include CEO approval ratings from staff, ratio of women on boards, accounting infractions and scandals and carbon footprint.

The results indicate that the top 10 companies on the 2015 index increased in value more than twice as much as the bottom 10, generating 50% more earnings. Furthermore, Parmar reports a correlation as high as 80% between departments with higher empathy and those with high performers. On the other hand, companies that faced ethical failures performed more poorly on the index.

-- Ian Burton

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