On the one hand, Danzo—a startup that redefined hyperlocal delivery—saw its last co-founder abandon the sinking ship he had once helmed, and more than ₹500 crore. Excluding the responsibilities of Despite raising $240 million just two years ago from marquee investors like Reliance Retail, Google, Lightbox Ventures, Lightrock, 3L Capital, and Alteria Capital, the decline highlights a glaring gap in governance and oversight. These investors, despite their pedigree and expertise, missed out on the systemic operational chaos at Danzo. Was the lure of growth at all costs tempting to question the fundamentals? Or was it expected that prices would continue to rise in later rounds?

On the other hand, the L&T chairman advocated a 90-hour workweek including Sundays, sparking outrage among employees and industry watchers. His tone-deaf statement, followed by the company’s public defense of his comments on social media, raises an even more painful question: Who will hold him accountable? Will any of L&T’s board members or institutional investors — well-known names with considerable influence — demand accountability for this apparent misalignment with modern work culture? Or will loyalty to heritage override the need for introspection and reform?

What do these stories have in common? Leadership’s failure to keep up with the times—and the growing need for strict accountability from boards and investors alike.

Danzo’s current plight reflects profound lessons for boards and investors alike. The cap table was filled with venture capital and some of the biggest names in the industry, yet no one raised red flags to avoid the crisis. Governance mechanisms, fiscal discipline, and long-term strategy were clearly sacrificed on the altar of hyper-growth. A co-founder’s exit and subsequent employment at a competitor only adds insult to injury, leaving creditors, employees and vendors to pay the price. What lessons will Dunzo’s investors learn to ensure they don’t repeat such costly oversights?

Dunzo co-founder Kabir Biswas’ decision to leave the company he built and join a competitor raises important questions about accountability and leadership in India’s startup ecosystem. For a founder to distance himself from a debt-burdened company, even as it struggles to remain operational, undermines confidence in leadership. It suggests a culture where the glamor of scaling and fundraising overshadows the long-term sustainability of the business. Such actions can erode startups’ credibility in the eyes of investors, employees, and stakeholders who expect founders to stand by their organizations, especially during difficult times.

The move also exposes deep cultural issues within the Indian startup ecosystem, where personal ambitions sometimes outweigh collective responsibility. By joining a competitor, he inadvertently sends the message that personal career advancement can erode loyalty to one’s team, investors, and commitments. This raises strategic concerns for future ventures, as it becomes difficult to attract and retain investors or employees who become fearful.

Meanwhile, at L&T, the chairman’s remarks are symptomatic of a leadership style steeped in paternalistic and outdated ideals, at odds with the aspirations of a younger, more progressive workforce. Employees are no longer willing to be martyrs for corporate growth, and the modern workforce values ​​work-life balance, flexibility and purpose-driven leadership. When a company defends such remarks rather than addressing their legitimate concerns, it risks eroding its talent and tarnishing its reputation. Investors also have a role to play here—will they insist on a governance framework that prioritizes alignment with contemporary employee values ​​over outdated sloganeering?

Both these cases will serve as a reminder of the need for strong accountability at the top. For startups, the lesson is clear: An obsession with valuation and scale should not come at the expense of operational sanity or financial discipline. For established organizations like L&T, the message is equally straightforward: even giants cannot afford to stay away from the changing ethos of their workforce.

Leadership today is about empathy, adaptability, and ensuring that actions and expectations align with the values ​​of stakeholders—be they employees, investors, or society at large.

Now is the time to ask tough questions of our leaders, regardless of their stature or past success. Investors and boards cannot shirk their responsibility to ensure ethical governance and cultural alignment. India’s business ecosystem deserves leaders who inspire trust — not just growth — and who understand that sustainable success is based on respect for people, not the numbers they produce.

More importantly, are these failures symptomatic of deeper flaws in how we evaluate leadership, or are they outliers? As we move toward a future where the workforce demands empathy and accountability, can leaders afford to remain stuck in the past? As the saying goes, “Leadership isn’t about being in charge – it’s about taking care of those you charge.”

The author is a corporate consultant and independent director on corporate boards. He tweets as @ssmumbai.