Emotional Intelligence and Climate-Conscious Decision Making in Corporate Management

Abstract

The proposed research provides an essential contribution to the literature on sustainable business by empirically examining the application of Emotional Intelligence (EI) to improve climate-conscious decision-making (CCDM) in corporate management. As companies increasingly struggle to embrace the idea of Environmental, Social, and Governance (ESG) they are receiving increased pressure, but a consistent implementation gap is present between what companies can theoretically consider solely through the prism of rational decision-making and what happens in practice in ways that are associated by some with a lack of emotion and ethical complexity in sustainability transitions. Based on the framework by Goleman, the research hypothesizes that the EI competencies of leaders, such as self-awareness, empathy, self-regulation, and social skills, play a critical role in helping a leader cope with these human-based challenges. A quantitative, cross-sectional design was used, and data were collected through structured questionnaires administered to 76 managers across industries such as manufacturing, technology, finance, and energy. The EI was measured using a 12-item scale and a novel 7-item scale measured CCDM behaviors, including environmental integration, stakeholder engagement, long-term perspective, and implementation efficacy. Correlation and multiple regression analyses showed a significant positive correlation between overall EI and CCDM, accounting for 62% of the variance. Empathy was the most powerful, followed by self-awareness and social skills. The results indicate that EI provides the managers with the mental agility, ethical boldness, and relationship strength to lead substantive climate action, overcome stakeholder resistance, and entrench sustainability into the fundamental strategy. The paper adds a new theoretical connection between EI and climate leadership and provides viable imperatives for incorporating EI development into corporate sustainability training and leadership development programs that are requisite for the low-carbon future.