I'm not really sure. I would think that, as with most things, context is everything. For example, if a basketball team is doing conditioning drills, and one or two guys slack, it can do some pretty cool team building teaching to keep the whole team running until everyone pulls their weight.
The military, especially in special forces/seal training, etc use this theory as well in many aspects, as I am sure many of you know.
When applied to rule of law, otoh, I believe that society should be responsible for itself as a whole, but responsible for themselves INDIVIDUALLY. I hope that makes sense. Violating anothers' rights or committing a crime is an individual act, and should come with an individual consequence in most cases, IMO.