Empathy in non-altruistic settings: Conceptualization and operationalization in business

A hundred years since the first mention of the word empathy in the English language, scientists and philosophers have been unable to arrive at a common consensus on its precise definition. Common wisdom associates empathy with vicarious emotional arousal or altruism. This study conducts a systematic review of research work in business studies dealing with empathy. The method used comprises applying lower-level abstract taxonomy to empathy, for the first time, in external business stakeholder interaction situations of sales, marketing, and customer service. The measurement scales used in the studies are analyzed to showcase mental processes at stake during the act of empathy, the theorized functions, and expected business outcomes of empathy. Implications are drawn for various aspects of managerial decision making. The study suggests a novel framework to execute a more nuanced grade examination of processes involved in empathy and reducing subjectivity in conceptual definitions. The study also calls for overhauling empathy measurement scales, mainly to suit adaptations in empirical business studies.