Eric Tang is the managing director for Canada at strategic communications company Porter Novelli.
Innovation has long been the engine of economic progress, driving efficiency, growth and differentiation. But without alignment to corporate values, innovation can become untethered – chasing short-term gains while losing strategic focus and stakeholder trust.
Corporate values, when well-articulated, serve as a north star, guiding decision-making and ensuring that innovation efforts are both commercially viable and socially responsible. This alignment provides a framework for sustainable growth.
Why aligning values with innovation matters
Three key advantages emerge when companies use values as a foundation for innovation:
- Values provide a unique and inimitable competitive advantage. A company’s values are its DNA – intrinsic and impossible to replicate. When deeply embedded in strategy, they serve as a defining differentiator that fends off competition.
- Values act as a strategic filter. Companies must make clear choices about where to invest and how to allocate resources wisely to maximize returns. Values help businesses determine what to pursue, what to avoid and where to intensify and accelerate, preventing them from chasing trends that conflict with their long-term vision.
- Values strengthen communication and trust. Innovation initiatives are often questioned by regulators, customers and employees. When innovation decisions are clearly anchored in values, they become more persuasive and accountable. Companies can explain their actions with clarity, reinforcing credibility and deepening stakeholder relationships.
In the latest Ipsos Canada’s Most Influential Brands 2024 study, the top two winners, Google and Amazon, received equally high scores in the “Leading Edge” (innovation) and “Trustworthy” indexes that set them apart from other brands. As the top winner, Google also scored high on “Engagement” as they demonstrated their economic contribution to Canada and safeguarding Canadians’ cyber safety with training as they prepare to integrate their GenAI model Gemini into their service offerings.
Bringing innovation and values to life
A growing number of industry leaders successfully leverage values to guide innovation. Their experiences illustrate the power of integrating principles with progress.
Consider the pharmaceutical industry. Leading companies in the sector understand that drug development must be patient-centric. Their business strategies are grounded in patient-first values, and they actively engage stakeholders, including patient advocacy groups, regulators, medical professionals and academics to build trust and support. As AI-driven drug discovery becomes more prevalent, demonstrating transparency and ethical responsibility is even more critical.
Storytelling through action
Aligning innovation with values requires active commitment and continuous adaptation. To do this effectively, companies must:
- Understand and anticipate customer needs to develop meaningful solutions
- Stay ahead of cultural and technological shifts to ensure innovation remains relevant and desirable
- Engage regulators constructively, advocating for frameworks that enable collective progress
The food manufacturing industry provides another strong example. In recent years, these companies have responded to consumer expectations around food quality and nutrition as well as regulatory labelling requirements. Many have made significant progress in providing clear nutritional and calorie information on packaging. To further demonstrate their commitment to healthy living and responsible consumption, many are now focusing their innovation efforts on increasing protein content and offering more plant-based, environmentally sustainable options. This approach aligns values with innovation to drive long-term business growth.
The journey of innovation is rarely linear. The fail-fast mentality – so often championed in tech circles – is just one part of the equation. True innovation also demands open dialogue, adaptability and the courage to course-correct when necessary. Companies that master this balance do not just tell compelling stories – they live them through their actions.
This column is part of Globe Careers’ Leadership Lab series, where executives and experts share their views and advice about the world of work. Find all Leadership Lab stories at tgam.ca/leadershiplab and guidelines for how to contribute to the column here.
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