What is business?

Peter Drucker asks

What is a business?

The answer that is usually given is, It is an organization to make a profit. That is not only false, said, Drucker, it is irrelevant. Profit-seeking is not the purpose of management decisions but a test of whether they work. He goes on "If you want to know what a business is we have to start with its purpose, which must be found outside the business itself,... in society, in fact, since a business enterprise is an organ of society. There is only one valid definition of business purpose - namely to create a customer." This is the Drucker dictum that is best known around the world.

In this series of business notes, guest bloggers will contribute to the best ways to help run a business organisation, using the best things others have done and written or commented about. Our guest contributors will include Carlos Abuinez, a "street social" philosopher from Spain. I'll have another pint on you any day, cheers. Beauty