Dive Brief:
- Corporate empathy is becoming more of a focal point for businesses in the development of leadership and products, and it offers food and beverage manufacturers opportunities to better connect with employees and consumers.
- About one in five U.S. employers provides empathy training as a function of management development, a substantial increase from a decade ago, according to a study released this year by human-resources consultancy Development Dimensions International. That percentage could double another 10 years from now, DDI senior vice president Richard S. Wellins told The Wall Street Journal.
- In addition to boosting employee morale and emotionally engaging consumers, corporate empathy could also improve corporate financial results. Of the 160 companies on the 2015 Global Empathy Index, the top 10 businesses reported 50% more net income per employee than the bottom 10.
Dive Insight:
Corporate empathy can boost the bottom line in several ways. More empathetic management can reduce turnover among employees, which saves time and money on searching for and training new candidates. They can improve employee morale and foster a better sense of work-life balance, which can increase employees' productivity and efficiency. Empathetic management can also encourage innovation and creativity by being more open-minded to new ideas and the perceptions and experiences of others.
But corporate empathy can't diminish accountability; executives must balance the two. When food safety issues are involved, all employees are accountable for their hygiene, alertness, and effectiveness on the line or plant floor.
If products are contaminated, internal and external accountability is necessary to deal with the issue and prevent it from happening again in the future. But corporate empathy can humanize internal and external communications regarding a food safety matter, which improves the reputation of the company and its management in a time of crisis.
Corporate empathy is also an effective tool for food and beverage marketing and branding decisions. Companies and brands that display a sense of corporate empathy may appear more transparent and authentic in sharing consumers' concerns about animal welfare, sustainability, social issues (such as LGBT rights, supported by Chobani and Bud Light), and the health and safety of food and beverage products.