Re­spons­ible lead­er­ship fails the test – again

Once a month, researchers at Copenhagen Business School provide Børsen readers with a current and research-based perspective on the challenges facing leaders.

This time, CBS president Peter Møllgaard and deputy president Inger Askehave write about the importance of responsible leadership when a great deal is at stake. In such situations, responsibility is a necessity, not merely an option.

Do you ever feel that reality surpasses fiction? You are not alone. The world looks drastically different from just a few years ago.

In the 2010s, most leaders would likely have viewed the drama of TV series such as House of Cards and Succession as far away from their daily experiences in government offices and boardrooms. But what about today?

Some might argue that the concept of responsible leadership has become outdated. After all, is irresponsible leadership even conceivable? Unfortunately, today, the answer seems to be yes. Previously, responsible leadership was primarily about delivering on CSR strategies and the UN’s Sustainable Development Goals. Today, it also entails navigating and finding solutions amid the uncertainty and chaos of 2025.

Responsible leadership is more relevant than ever. It is an imperative – especially for CBS – to develop Danish business leaders’ competences in responsible leadership and their ability to identify opportunities where others see paralysing dilemmas.

Our new reality demands that we as a society place far greater emphasis on responsible leadership in business. There are three key reasons for this.

Reason 1: Irresponsible leadership?

First, responsible leadership is once again failing the test. We are witnessing increasing instances of irresponsible leadership, with blatant recklessness emanating from the White House, potentially permeating businesses and organisations worldwide.

How should corporate leaders navigate when DEI initiatives and sustainable transitions come under intense scrutiny? Even skilled and high-profile leaders may conclude that they must retreat or remain silent to maintain balance – not least out of responsibility to their customers and employees.

Yet it is exactly when others act irresponsibly that responsible leaders must step up. It is exactly when the stakes are highest that responsibility is a necessity, not an option.

Reason 2: Competitiveness is strength

Secondly, competitiveness has become synonymous with resilience on the battleground of global superpowers. In the EU’s Competitiveness Compass, Ursula von der Leyen articulates it clearly: “Europe’s competitiveness and what Europe stands for are inseparable.”

Lack of competitiveness and fragile supply chains leave us vulnerable to geo-economic pressure and fragmentation. We have already seen how Russia exploits Europe’s reliance on oil and gas. What are the implications of China, according to the Australian Strategic Policy Institute (ASPI), leading in 37 out of 44 critical technologies?

It might be tempting to conclude that the EU has fallen behind due to an excessive focus on responsibility – what Europe stands for – at the expense of competitiveness. However, such a conclusion would be misguided. The Competitiveness Compass defines competitiveness through a triad: technology, sustainability and security.

So, when von der Leyen asserts that competitiveness and European values are inseparable, the relationship is reciprocal. The solution is not to abandon responsibility but to cultivate and promote it: green solutions, social innovation and gender equality in leadership are not Europe’s weaknesses. They must become our greatest competitive advantages.

Reason 3: Businesses bear the responsibility

Thirdly, businesses are not merely tools in the power struggles of superpowers – they are also our most effective means of addressing our greatest shared challenges: the green transition, technological advancement and chaotic geopolitics.

Complexity reaches its peak when these challenges converge into a polycrisis – when we transition our vehicle fleets with Chinese batteries, enhance productivity with American AI technologies and expand our supplier networks to oil-rich states.

This polycrisis forces business leaders to navigate one dilemma after another. Even with the clearest regulations, their decisions will impact all of us as AI, quantum and biotechnology become increasingly embedded in our daily lives.

Responsible leadership in constant change

We now find ourselves in a reality that pressure tests even the most well-established leadership theories and tools. This should prompt even the most accomplished leaders to pause and reflect: How do I exercise responsible leadership?

One essential insight is that the greatest challenges unite us. While your dilemma may be unique, the best solutions are often found through collaboration.

In 2024, the CBS Leadership Centre think tank brought together 50 leaders from various sectors – LEGO, the Danish Defence Command, DR, Novo Nordisk and many more. Each had unique contexts and leadership challenges, yet it became evident that they all faced the same expectation: politicians, customers and society increasingly demand that leaders act responsibly facing constant change and complex challenges.

On 20 March 2025, 80 leaders and experts convened again – this time against the backdrop of trade wars, an AI revolution and military build-ups. Their shared experience of heightened expectations for responsible leadership has only intensified in 2025. Leaders must navigate and identify business opportunities within the Circle of Wicked Risks.

CBS must support all responsible leaders

This shared experience does not imply that the path to responsibility is the same for everyone. On the contrary, the rules governing what constitutes the ‘right’ corporate decision are constantly evolving.

This also means that we cannot find all the answers solely within business models, methods or theories. At CBS, our mission is to complement strong business education with networks, reflection and curiosity – supporting Danish business leaders who seek to think critically and act responsibly.

We are committed to equipping corporate leaders with the ability to resolve dilemmas and create competitive advantage through challenges. We take responsibility for increasing interest in responsible leadership – and for providing compelling opportunities to those who embrace it.

This commitment stems not only from the reality that competitiveness is now a form of strategic resilience and that business leaders increasingly shape our shared future. It is also driven by the recognition that something as seemingly abstract and straightforward as responsible leadership is once again being put to the test.