A few weeks back, I wrote an opinion piece for The Innovators Network titled, Innovation Hero Worship: FTX, Theranos, and the Media. The core of the article is my belief that the media has a responsibility to not feed 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.

The 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.

First, there is a failure to consider and improve upon the consequences of an innovation.

With 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.

Second, there is a lack of accountability and responsibility in 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.

Third, ethical standards are absent when 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.

Fourth, there is often a lack of transparency and communication about the risks and benefits of innovation.

Innovators 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.

Fifth, there is often a focus on the financial returns of innovation rather than on balancing its societal impact.

It'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.

“Just as a car needs both the accelerator and the brake, responsible innovation requires both pushing boundaries and considering the consequences.”

Not all negative effects are intentional. Sometimes, innovation can hurt society as a result of unintended consequences.

Intentional irresponsible innovation happens when companies knowingly take risks and create negative social outcomes. A recent example is Facebook’s conscious decision to prioritize engagement and growth over user privacy.

Accidental irresponsible innovation occurs when companies lack the necessary knowledge or resources to fully consider the consequences of an innovation. Unfortunately, these types of mistakes can lead to serious consequences. A recent example is the Uber driverless car that killed a pedestrian.

The consequences of irresponsible innovation can be severe and far-reaching. Organizations that fail to consider the potential social impacts of their innovations risk creating serious problems. These could include financial losses, public distrust, and even legal liability.

Financial losses due to irresponsible innovation are not just limited to shareholders and investors but can also have consequences on the wider economy. For example, when FTX went bankrupt, it hurt the entire market.

We must also consider that irresponsible innovation can have serious legal and ethical implications, as seen in the case of Theranos. In this scenario, both investors and consumers were misled about the efficacy of a product and the company, along with the founder, was found guilty of fraud.

Finally, we must consider that irresponsible innovation can lead to public distrust of innovation. This could mean that people are less likely to embrace new technologies and products, leading to slower economic growth and development.

We must all work together to create a framework for responsible innovation that considers the potential consequences of our innovations and work towards creating a better future for everyone.

This will require a firm commitment from all stakeholders to consider the potential consequences of their work. This includes companies, governments, citizens, and the media.

Companies must be proactive in identifying and mitigating any negative impacts of their innovations. They must also be willing to take responsibility for these impacts, even if they are not directly responsible for them. How?

Governments must create a framework for responsible innovation that considers the potential societal consequences of new technologies and products. This framework should encourage others to act responsibly and provide guidance on how to do so. How?

Citizens must be willing to ask questions about the consequences of innovations and hold all stakeholders accountable for their actions. We must also be open to change, accepting that not all innovations are good and that we need to weigh the costs and benefits of each carefully. How?

And let's not leave out the role of the media. The press needs to provide accurate, objective reporting on the consequences and impacts of innovations. This is essential for informing citizens and holding companies and governments accountable. How?

Here are some recent examples of high-profile failures from irresponsible innovations and the lessons learned from each.

Irresponsible innovation can have serious consequences. It's important to take steps toward creating a more responsible system of innovation to avoid potential negative outcomes in the future.

Responsible innovation is becoming an essential part of creating a positive future for everyone. If we make sure that businesses and governments take the time to consider the outcomes of their actions, are held accountable for them, and stick to ethical standards when coming up with new ideas, it will be possible to build a more dependable system of innovation.

To put it simply, responsible innovation is about considering the human implications of any innovation advancement and striving to make sure that those implications are understood, communicated, and addressed.

If we want to make a real difference in the world, responsible innovation must be a priority for everyone.

To know more about irresponsible innovation, listen to: Irresponsible Innovation.