These articles are taken from the book “The Daily Drucker.” These areticles are a great resource for manager, business owners, and leaders (at all levels) to get bite-sized insights to ponder and apply to their work.
Authority without responsibility is illegitimate; but so is ressponsibility without authority. “Public: responsibility was to Alfred Sloan worse than unprofessional; it was irresponsible, a usurpation of power. “We have a responsibility toward higher education,” a cheif executive of a major Americal corporation once said at a meeting both Sloan and I attended. “Do we in…
Good intentions are not always socially responsible. A business that does not show a profit at least equal to its cost of capital is irresponsible; it wastes society’s resources. Economic profit performance is the base without which business cannot discharge any other responsibilities; cannot be a good employer, a good citizen, a good neighbor. But…
Profit is the ultimate test of business performance. Profit serves three purposes. One it measures the net effectiveness and soundness of a business’s efforts. Another is the “risk premium” that covers the costs of staying in business – replacement, obsolescence, market risk, and uncertainty. Seen from this point of view, there is no such thing…