Changing The Game
Ethically disruptive innovations function just like any other disruptive innovations, but they challenge core strategic norms that can limit the options of traditional businesses attempting to adapt. The most adaptive response for a conventional enterprise faced with ethical disruption would be to copy the tactics of the disruptor. This can be pretty challenging, however, especially if the disruptive value propositions conflict with the wealth consolidating goals of owners and investors. Traditional owners and investors may fold or sell before accepting a restructuring as a mutual to deliver more ethically competitive value propositions and stave off disruption. Alternatively, they may see that their long-term interests are best secured by implementing a transition towards a structure capable of delivering more ethically competitive value propositions. Ethical disruption changes the game so that impact innovators can make their impact by winning, or they can make their impact by forcing their competition to copy their ethical tactics. Either scenario is a win for society and a win for ethical disruption.