The transition from Industry 4.0 to Industry 5.0 marks a paradigm shift from a technology-driven focus to a more human-centric approach. This evolution emphasizes the need for ethical and responsible leadership to address the ethical challenges and failures associated with advanced technologies. Industry 4.0, known by the proliferation of automation, artificial intelligence, and interconnected systems, has enabled unprecedented efficiency and innovation. However, it has also highlighted significant ethical failures, including data privacy breaches, workforce displacement, and environmental degradation among others. These issues necessitate a new strategy based on a leadership approach that prioritizes ethical values and a focus on the service to others, as sustained in the Ignatian tradition. Industry 5.0 builds upon the foundations of Industry 4.0 by integrating human values into technological advancement. It seeks to harmonize human capabilities with machine efficiency, fostering sustainable and inclusive growth. Within this context, responsible leadership emerges as a critical factor in ensuring that organizations navigate the ethical complexities of this new industrial era. Leaders must champion transparency, inclusivity, and sustainability while addressing the ethical dilemmas posed by human-machine collaboration, artificial intelligence, and data governance. The concept of human-centricity is central to Industry 5.0, demanding leaders who can balance technological innovation with the well-being of employees, customers, and society at large. Ethical failures, such as biased algorithms or exploitative labor practices, undermine the potential benefits of Industry 5.0 and highlight the necessity of proactive ethical oversight. This paper argues that responsible leadership, grounded in the Ignatian way of doing things, is essential to mitigating these challenges and ensuring that the transition to Industry 5.0 fosters trust, equity, and sustainability. By exploring the interplay between ethical failure, Ignatian leadership, and human-centricity, this study contributes to navigate the complexities of the Industry 5.0 landscape.