Social good

The third type of benefit from digital transformation is social good. Social good is something that benefits a significant number of people. For example, the United States Environmental Protection Agency's mission to ensure clean air, water, and land is a social good. Social good is the basis for much of the work performed by governments and philanthropic organizations.

In 1970, Milton Friedman, one of the most famous economists of the 20th century, put forth the theory that the role of a CEO and, therefore, a corporation, was to maximize corporate value without regard for any effects on individuals or society. This theory was widely embraced and the effects of corporations maximizing profits without regard to their impact on others, known as externalities, resulted in substantial negative impacts, such as environmental pollution. However, in recent years, most private sector organizations have recognized the impacts of negative externalities and embraced their...