Balancing commerciality and responsibility in a rapidly changing world

Paul Batterham, Head of Innovation at Kainos, highlights the need to balance profitability with ethics in innovation, advocating for sustainability, inclusivity, and responsibility to drive lasting success.
Date posted
18 November 2024
Reading time
5 minutes
Paul Batterham
Head of Innovation · Kainos

In The Innovator’s Dilemma, Harvard professor Clayton Christensen explained how established companies struggle to maintain relevance as new, agile competitors disrupt the market by targeting overlooked niches. These newcomers often leverage emerging technologies to serve niche markets, eventually gaining broader market dominance.

Today, companies face a new dilemma: balancing commercial success with responsibility. What trade-offs are required to “do the right thing, right”? And what does “the right thing” even mean? As Dr. Ian Malcolm from Jurassic Park famously warned, “Your scientists were so preoccupied with whether they could, they didn’t stop to think if they should.” Should every new technological possibility be pursued simply because it’s possible? This question looms over modern innovators and leaders.

In today’s fast-paced business environment, there is immense pressure to commercialise rapidly. Venture capitalists and shareholders expect quick returns, competition is fierce, and the race for market share pushes companies to move fast. This relentless drive for growth typically means success is measured by immediate financial gains rather than long-term, ethical considerations.

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A profit-first focus can lead to unintended consequences—data privacy violations, environmental harm, and social inequities are often pushed aside. While initially advantageous, this short-term mindset risks sacrificing consumer trust, inviting regulatory backlash, and ultimately undermining a company’s reputation. The costs of prioritising short-term gains can be substantial. Companies that sideline ethical responsibilities risk losing public trust and may face backlash that impacts long-term success. For sustained growth, balancing profitability with ethical considerations isn’t just ideal. It’s essential.

The 2018 Facebook-Cambridge Analytica scandal is a clear example of this. Facebook’s focus on rapid user engagement and advertising revenue led to inadequate oversight, allowing third parties to misuse personal data for political influence. The public backlash was swift, resulting in significant reputational damage, billions in fines, and a lasting erosion of trust. This case underscores the risks companies face when they sideline ethical considerations for profit, highlighting the need to balance commercial success with responsibility for sustained growth.

The tension between innovation and responsibility is visible across multiple industries. Social media platforms, for instance, have transformed global communication, but issues like misinformation and polarisation persist due to insufficient ethical oversight. Platforms such as TikTok and X have grown profitably, yet their long-term societal impact raises serious ethical questions.

Similarly, the fast fashion industry has achieved significant financial success by producing trendy clothing at low costs, but at a high social and environmental price. Rapid production cycles and cheap materials have led to massive waste, with millions of tons of clothing discarded annually. The industry also often relies on exploited labour, with workers in unsafe conditions and meagre wages. While the economic gains are substantial, the environmental and ethical costs reveal the downsides of prioritising commercial success over sustainability.

Artificial intelligence (AI) is another area where commercial interests sometimes clash with responsibility. Advances in AI, driven by profit motives, have led to breakthroughs in personalisation and data processing. However, these advancements also raise privacy concerns as AI systems track and analyse personal data at unprecedented levels. Without strong ethical frameworks, the commercial success of AI can come at the cost of individual privacy and autonomy.

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The traditional definition of ‘success’ in innovation is outdated and dangerous. Profitability alone can no longer be the sole measure of achievement—businesses must be held accountable for their impact on society and the environment. We must demand a new standard where companies are judged not just by financial growth, but by the legacy they leave. This shift insists that businesses confront the true costs of their actions.

Responsible innovation isn’t just a feel-good concept; it’s an urgent call for change grounded in four non-negotiable values:

  • Sustainability: Companies can no longer ignore the environmental impact of their products and processes. Innovation that harms the planet is reckless, not successful.
  • Transparency: In a world of misinformation, only full disclosure earns trust. Stakeholders deserve to know what’s behind the products they support.
  • Inclusivity: Serving only a select few isn’t innovation; it’s exclusion. True progress designs for all, embracing diversity and accessibility.
  • Ethics: If an innovation’s impact on people and society is ignored, it’s not progress—it’s exploitation.

The future of innovation hinges on a brutal truth: we can no longer allow businesses to hide behind profitability as the ultimate goal. Real success means making choices that drive positive, lasting change.

Striking the right balance between commercial objectives and responsibility is essential. Innovators need frameworks to navigate this balance, allowing them to pursue profitability without compromising ethical standards. Responsible innovation is more than an ideal—it’s a practical pathway to sustained relevance and trust. By redefining success, companies can contribute positively to society and achieve long-term resilience.

At Kainos, we are committed to creating a lasting positive impact. Earlier this year, some of our teams took part in an academic study on using responsible innovation methods in customer service delivery. Team members were introduced to the AREA framework—anticipate, reflect, engage, and act—developed by the Engineering and Physical Sciences Research Council (EPSRC) to help innovators align their work with responsible innovation principles.

Through six weeks of collaborative workshops, Kainos people used the AREA framework to challenge how we research, design, build, and deliver digital services. Structured as a deck of cards, the framework’s questions range from high-level considerations—“should this work be undertaken?”—to practical inquiries like “who could be indirectly affected?” and “how diverse is the delivery team?” The questions also address regulatory, legislative, and transparency issues, promoting continuous improvement.

Early findings from this study will be presented at the Responsible Innovation Conference on 29th November at Belfast’s Harbour Commissioner’s Office. Going forward, Kainos will integrate responsible innovation practices into customer delivery as a standard, complementing our existing AI ethics and inclusive design frameworks. This commitment reinforces our goal to build solutions that are both impactful and ethically sound.

Michael Crichton’s Jurassic Park offers a cautionary tale of irresponsible innovation. Ian Malcolm’s question captures the heart of today’s dilemma: moving beyond “can we?” to “should we?” In our rapidly changing world, where technology holds immense potential and unforeseen risks, we must strike a balance between commercial success and ethical responsibility.

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The future relies on innovators, policy makers, and business leaders who can align profitability with purpose. By embedding values like sustainability, inclusivity, and transparency, we can create solutions that benefit both society and the bottom line. The challenge is to pursue progress in a way that serves not just markets and shareholders, but humanity as a whole. Embracing this balance is essential for the road ahead. Let’s commit to innovation that considers the broader impact—doing what’s possible, but also what’s right—to build a world where people and profit thrive together.

The Responsible Innovation Conference takes place on Friday 29 November. Curated by Kainos, the event brings together tech experts, business leaders, academics and innovators to explore how technology intersects with society and ethics. From sustainable tech and AI ethics, to corporate responsibility and the circular economy, the conference will offer an essential forum to discuss and address today’s most critical challenges and opportunities. The event is a powerful step toward shaping a future where technological advancements benefit everyone, protect our planet, and honour our shared values.

About the author

Paul Batterham
Head of Innovation · Kainos