How leadership can balance ethics and innovation — lessons from Young Global Leaders

In an era where innovation and disruption have become synonymous with progress, leaders find themselves grappling with a critical question: How can we ensure that the leaps we take are not only groundbreaking but also sustainable, ethical and socially responsible?

As the pace of change accelerates, often outpacing our ability to fully address its ethical implications, this challenge has taken on a newfound urgency.

During the World Economic Forum's Annual Meeting of New Champions 2024 in June this year, Young Global Leaders (YGLs) explored how they are grappling with the tension between innovation and ethics in their own work. They shed light on what it takes to responsibly steer the course of progress in an age of rapid and transformative change, offering a glimpse into the complex landscape of ethical leadership in the 21st century. Here are three key lessons they're taking forward.

When we prioritize speed to market over careful consideration of fairness, privacy and potential unintended consequences, we risk creating innovations that may impress in the short term but ultimately erode public trust and cause long-term harm.

YGL Anahita Thoms, a Partner in Baker McKenzie’s International Trade Practice, said that in her work, she has learned that “when you walk people through step by step what ethics actually encompasses, you will find more allies than you think.” Thoms makes it clear that “ethics must be embedded into the very DNA of our innovation processes, not as an afterthought, but as a guiding light from the start.”

This sentiment was echoed by numerous other YGLs, including YGL David Walcott, the Founder and Managing Partner of Novamed. Walcott emphasized the importance of maintaining a sense of curiosity that enables leaders to constantly “seek to optimize” the balance between innovation and responsibility. Specifically, he noted that “there is no ‘final balance’ and that the battle for balance is an eternal act of juggling priorities around a line of best fit.”

As we navigate the uncharted territories of technological progress, this moral compass becomes all the more indispensable. It guides us towards innovations that not only push boundaries but also uplift and empower society as a whole.

To embed ethical considerations into the innovation process, leaders must ask tough questions at every stage of the lifecycle and engage diverse stakeholders to help anticipate blind spots and potential pitfalls.

YGL Gabriel Marcolongo, the Founder and CEO of Incluyeme.com, faced such a dilemma when developing an AI-driven tool to efficiently match job seekers with disabilities to suitable employers. “The innovation promised significant improvements in our placement rates and user experience,” he said. However, during development, his organization “encountered ethical concerns regarding data privacy and the potential for algorithmic bias.”

Balancing innovation and ethics, Marcolongo explained that he “paused the project to conduct a thorough ethical review and enhance our data protection measures.” He and his team also “worked with experts to mitigate bias, ensuring the tool promoted fair opportunities for all users,” he added.

The key lessons learned, according to Marcolongo, are “the importance of prioritizing transparency, actively involving diverse stakeholders in the development process and maintaining a steadfast commitment to our core values.” This approach safeguarded users and strengthened trust and credibility in the platform.

Leading with empathy and compassion while understanding the interconnectedness of our global community is crucial in navigating the complex landscape of innovation and its potential impact on individuals and society as a whole. As YGL Carol Yu, the Founding Partner and Associate Dean of Shenzhen InnoX Academy, emphasizes, leaders must "have compassion and people's real interests in mind" and "try to understand what people really want."

YGL Forsan Hussein, the Founder and Managing Director of Zaitoun Ventures, illustrates this principle through a poignant example from his own leadership journey. In one of his companies, the introduction of new software threatened to replace half a dozen employees, jeopardizing the well-being of their families. Hussein recognized the gravity of the situation and chose to lead with compassion. “What I did was train these six employees with upskilling before they were let go, gave them incredible recommendations, and even set them up with my network and helped them find jobs,” he said. “Social and upward mobility was at the core of it, given that I had a great deal of empathy for these individuals and their families. I realized that these six individuals are responsible for close to 50 other individuals. So it was critical to help them with their next step.”

Hussein's actions exemplify the people-centric approach advocated by Yu, demonstrating that true innovation must be grounded in a deep understanding of the human impact of technological change. By proactively supporting those affected by innovation and prioritizing their well-being, leaders can foster progress that benefits their organisations and the broader community.

The insights these Young Global Leaders share serve as a call to action for all those in positions of influence to approach innovation with a commitment to responsible leadership.

As we continue to push the boundaries of what is possible, leaders should not lose sight of their responsibility to ensure that society's progress is not only transformative but also inclusive, equitable, and, ultimately, in service of the greater good.