If I can better understand what somebody is thinking or feeling, their motivations and actions make more sense. As a result of understanding them better, I can develop a better social connection with them. A strong connection is the basis of a friendship or a relationship. In work, a strong connection is the gateway to help foster trust with coworkers.
Active listening is vitally important to making sure you understand project requirements before digging in. Being able to give and receive good feedback is critical when working with a team. It's a great way to keep everybody accountable and to make sure everybody is working toward a common goal.