Welfare economics seeks to understand the value of both the positives and negatives of technology adoption.
A socially thoughtful and innovation led technology strategy – which we are dubbing Technological Social Responsibility (TSR) – can drive real benefits at both a business and societal level.
Our research shows that greater alignment between innovation and transition management could substantially increase the welfare benefits resulting from technological change. A focus on people will be central to creating positive technology transitions – both by investing in a productive and flexible workforce, and in creating partnerships and strategic alliances with the public sector.
By adopting a conscious mindset to embrace technological transitions as a force for greater good, rather than a narrow focus on financial rewards, businesses will begin to exhibit the behaviors that can form the foundation of a corporate TSR strategy.
This article was originally published on McKinsey.com on August 6, 2019, and is reprinted here by permission.