How To Use Cognitive Empathy To Be A Better Business Leader |
Given the marked changes from the Trump Administration, it’s clear that societal issues dealing with identity—race, gender, ethnicity, sexual orientation and disability—are no longer a policy priority in the U.S. That flows to business as well. Gravity Research has quantified just how much the social issues businesses care about have declined, and 2025 shows some stark differences.
The research, compiled by analyzing 12,894 corporate actions and initiatives at 771 companies reported on company websites, LinkedIn pages and local media coverage from January 1, 2024, to October 31, 2025, shows the largest drop in DEI engagement—dealing with all kinds of diversity in the workplace and community. Engagement with these issues dropped 81% over the past year. Climate and sustainability activism also fell 51%, the study found—though company statements still identify that as a top corporate priority.
There’s no clear reason for these major pullbacks identified in the study, but Gravity Research notes that nearly half of corporate communicators said “U.S. political fractures” were the primary influence on comms strategy this year. The Trump Administration’s priorities—and its nontraditional habit of calling out and threatening companies with which it disagrees—likely played an outsized role in the change. It may also explain why companies moved to more low-key areas of engagement, dramatically reducing the percentage of corporate policy statements and event sponsorships—both down more than 60%—and donations and grants—down about a third—in 2025.
There is one area in which corporate engagement has increased: AI and tech safety. The study found AI engagement up 86% this year, with 403% more talk about product lines and success stories. Gravity Research’s report was published at the beginning of this month, before President Donald Trump’s executive order essentially allowing federal litigation against state AI regulation, so it’s unclear if this will continue to be seen as a “safe” topic for corporate engagement in 2026.
Gravity Research predicts that companies will continue to focus on lower-risk areas in 2026, likely their local communities. That sort of engagement might be needed more than ever next year, as affordability issues persist across the country.
No matter which areas of social engagement a company takes on, certain social behaviors and consciousness help business leaders succeed. Cognitive empathy—a deeper understanding of why others feel and behave the way they do—has become a more important leadership trait in recent years. I talked to Christine Barton, North America Leader of Boston Consulting Group’s CEO Advisory Practice, about how executives can use cognitive empathy to better connect with employees. An excerpt from our conversation is later in this newsletter.
While it’s peak holiday shopping season, many Americans are already feeling the financial pinch that generally comes with January credit card bills. A new AP-NORC poll found that more than half of Americans are finding it hard to afford the things they want to give as gifts. This is an issue across the board—nearly two-thirds of those making less than $50,000 feel that way, and close to two in five of those making more than $100,000 also agree. Close to half of respondents said they are shopping for nonessential items less this year, and higher prices are standing out: 87% say groceries are more expensive, while 69% and 63% say the same about electricity and gifts, respectively.
President Donald Trump continually says there is no affordability crisis facing Americans, despite the fact that analysis of prices shows they are increasing—and his approval rating on the economy just hit an all-time low of 31%. Instead, Trump continues to insist on social........