Leadership's Emotional Intelligence Crisis: Causes and Consequences

Leadership without emotional intelligence (EQ) is not just a modern phenomenon—it is a significant challenge for organizations in the face of systemic changes and cultural shifts prioritizing short-term profits over long-term human well-being.
In recent decades, public companies have embraced a culture of shareholder primacy, where success is measured by financial performance and quarterly results, often at the expense of employee happiness, customer satisfaction, and community welfare. This focus on financial metrics has led to a dehumanization of organizational culture and a shift away from human-centric values.

The Shift to Shareholder Primacy

The adoption of shareholder primacy has fundamentally changed the way organizations operate. Over the past few decades, companies have shifted their focus to shareholder interests, believing that maximizing profits will ultimately benefit everyone. This mindset has created a culture where success is defined by financial benchmarks, rather than by the well-being of employees, customers, or communities. This shift has led to a perceived conflict between short-term financial gains and long-term human well-being.

The Removal of Emotionally Intelligent Leaders

In this new culture, leaders who prioritize empathy and human connection have often been seen as outdated or ineffective. Many organizations have marginalized or discarded leaders who exhibit high levels of emotional intelligence, believing that traditional task-oriented skills are more valuable. This has led to a significant lack of emotionally intelligent leaders in many top positions, as organizational structures prioritize efficiency and profit over human connection.

The Consequences: A Culture of Distrust

This profit-first mentality has had profound consequences, leading to widespread ethical lapses and scandals such as the Wells Fargo, Enron, and Boeing 737 Max incidents. These scandals have eroded trust within organizations, causing employees to distrust their leaders, coworkers, and even subordinates. This lack of trust has seeped into the broader culture, creating environments where abuse perpetuates abuse, even in social media interactions.

A Crisis of Mental Health and Reflection

Today, unhappiness and mental health challenges are pervasive, particularly among younger generations. As individuals grapple with the fallout of these issues, society is beginning to question the choices that have been made. One glaring answer is the undervaluation of emotional intelligence, which could have fostered trust, stability, and mental calm in these challenging times.

Why Emotionally Unintelligent Work Is Replaceable by AI

The relentless pursuit of efficiency and profits has led to workplace cultures that prioritize mechanical, task-oriented work over creativity and emotional connection. This shift has created a situation where routine and task-oriented roles can be highly automated by AI. Leaders and workers who lack emotional intelligence—those who do not inspire, innovate, or create environments where people feel valued—are increasingly replaceable by AI systems.

AI Cannot Replace Emotional Intelligence

While AI excels at processing data, executing tasks, and optimizing systems, it falls short in fostering creativity, innovation, and genuine human connection. AI lacks the historical knowledge and empathetic nature that human leaders with high EQ can provide. In the corporate world, emotionally intelligent people were often marginalized or removed from leadership and contributor roles, leading to a significant gap. This gap is now becoming starkly apparent, as people-centered leadership, which emphasizes empathy and emotional intelligence, is more important than ever in both workplaces and governments.

The Future Belongs to Emotionally Intelligent Leaders

The future of leadership will likely belong to those who can inspire, build trust, and innovate by understanding and meeting the needs of people. Organizations and governments that prioritize emotional intelligence and create supportive environments will attract the best talent, foster loyalty, and deliver superior results. Long-term success will belong to those who recognize the irreplaceable value of human connection and creativity. As artificial intelligence takes over routine and task-oriented roles, leaders who can empathize, connect, and inspire will be crucial in shaping our future.

In conclusion, the lack of emotional intelligence in leadership has led to a crisis of trust, mental health challenges, and the increasing replaceability of routine tasks by AI. However, as we move forward, the recognition of the value of emotional intelligence will become increasingly important, transforming organizational cultures and fostering a more humane and effective approach to leadership.