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A few weeks back, I wrote an opinion piece for The Innovators Network titled,\xa0Innovation Hero Worship: FTX, Theranos, and the Media. The core of the article is my belief that the media has a responsibility to\xa0not\xa0feed into the hero worship of innovation leaders. But there is more to the recent high-profile innovation failures than just the hero worship of founders and CEOs. The announcement of the bankruptcy of FTX and the sentencing of the founder and CEO of Theranos to over 11 years in jail for fraud begs us to look more deeply at the underlying issue of irresponsible innovation.
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\nWhat do I mean by irresponsible innovation?
\nThe definition is a bit nebulous and open to interpretation, but generally, it is an innovation that is done with little or no concern for the potential negative consequences of the innovation. In a recent study, most leaders and informed citizens believe that the potential negative impact of an innovation is not something that is ever considered. In their minds, most innovation is irresponsible innovation.
\nThere are 5 key contributors to irresponsible innovation:
\nFirst, there is a failure to consider and improve upon the\xa0consequences of an innovation.
\nWith innovation, it's important to consider all aspects of the consequences. This includes the positive and negative effects that innovation will have on society. By failing to consider and improve upon the consequences of an innovation, businesses and governments can inadvertently cause more harm than good.
\nSecond, there is a\xa0lack of accountability and responsibility\xa0in the innovation process. Businesses and governments must be accountable for their actions. This means that they must be willing to take responsibility for the negative impacts their innovations may have on society. Without this level of accountability and responsibility, businesses and governments are failing to act in a socially responsible manner. This accountability also needs to include the executives involved.
\nThird, ethical standards are absent\xa0when it comes to innovation. Ethics are important in any field, but it is quickly becoming increasingly important in innovation. Businesses and governments must set ethical standards and adhere to them. Without these standards, there is a risk that innovation will lead to greater negative outcomes.
\nFourth, there is often a\xa0lack of transparency and communication\xa0about the risks and benefits of innovation.
\nInnovators and entrepreneurs must be transparent and honest about the risks and benefits of their innovations. This includes providing realistic information about how innovation may affect society, as well as any potential solutions for mitigating negative effects.
\nFifth, there is often a\xa0focus on the financial returns\xa0of innovation rather than on balancing its societal impact.
\nIt's important for businesses, governments, and investors (e.g. venture capitalists) to consider the broader societal impact of their innovations. This means that financial returns should not be the sole focus. We should evaluate both the financial return and impact based on the innovations' potential to improve or harm society.