Building Sustainable Organizations: How Emotional Intelligence Drives Transformational Leadership
Building Sustainable Organizations: How Emotional Intelligence Drives Transformational Leadership

Author(s): Dereje Befekadu Tesseama
Subject(s): Business Economy / Management, Human Resources in Economy
Published by: Scientia Moralitas Research Institute
Keywords: Emotional Intelligence; Transformational Leadership; Corporate Sustainability; Leadership Development;
Summary/Abstract: Effective leadership has become crucial to organizational success with an increasing global emphasis on sustainable business practices. Transformational leadership, characterized by vision, inspiration, and individualized consideration, is key to employee engagement and innovation. Emotional intelligence enhances these leadership attributes by fostering self-awareness, empathy, adaptability, and interpersonal skills, contributing to effective decision-making and ethical corporate governance. This study examines the relationship between emotional intelligence and transformational leadership and their impact on corporate sustainability. Data were collected using a quantitative research approach from 578 project managers certified by the Project Management Institute across various industries. Emotional intelligence was evaluated using the Bar-On Emotional Quotient Inventory, and leadership behaviors were measured through the Multifactor Leadership Questionnaire. Results indicated a strong correlation between high emotional intelligence and transformational leadership, with emotional intelligence explaining 19 percent of the variance in transformational leadership. Stress management and adaptability scored highest, while interpersonal relationships scored the lowest. The study also highlights the role of emotionally intelligent leaders in corporate sustainability by fostering ethical business practices and stakeholder engagement. The findings emphasize the need for organizations to integrate emotional intelligence training into leadership development programs to enhance sustainability efforts. Future research should examine its long-term impact across different industries and cultural contexts.

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