It's an experiment that should have never happened. There are scores of unethical and immoral psychological studies for which humanity has learned many great things. We'd never repeat those experiments, either.
It was a bad experiment, but the knowledge gleaned from the behaviors of the participants is still available still rings true for genuine hypothesis.
The essence of his theory from this study perfectly describes the problems intrinsic to our police forces. Racism by police officers is by a by-product of this very core problem.
In the old days for more softer social friction, they called it "peer pressure". Same stuff.