Empathy, once widely regarded as a universal good and essential leadership strength, has increasingly become contested in politics, workplaces, and culture. This article traces the history of empathy from its aesthetic roots in the German term einfühlung to its role as a cornerstone of leadership, highlighting its benefits for innovation, collaboration, psychological safety, and human flourishing. At the same time, it examines the paradoxes and risks of empathy when practiced without ethical grounding, including compassion fatigue, manipulation, and politicization. Drawing on research and contemporary debates, the article argues that while empathy is under attack, it remains vital for rebuilding trust, bridging divides, and sustaining both leadership and community.