Peter Drucker made the observation in 1946 in his book, "Concept of the Corporation" that corporations had become the central institutions around which society is organized, more so than governmental, religious, or educational institutions. An opportunity to right the ship, in terms of the economy, is rapidly approaching. A huge problem …
Peter Drucker made the observation in 1946 in his book, "Concept of the Corporation" that corporations had become the central institutions around which society is organized, more so than governmental, religious, or educational institutions. An opportunity to right the ship, in terms of the economy, is rapidly approaching. A huge problem is that there are essentially no rules regarding the chartering of corporations in Delaware and Nevada, which is why they get most of the business. But, a new national corporate chartering process that recognizes the full scope of the fiduciary responsibility of corporate leaders to employees, communities, and customers by licensing the professions of board and executive committee membership (i.e. the whole C-suite). The licensing needs to include a requirement to adhere to a canon of ethics, just like legal, accounting, and medical professionals must. Then, whenever any "too big to fail" corporation comes knocking on Congress's door asking for bailout, part of the deal would be to re-charter it, and require the licensing of the leadership. These charters would become desirable because they would also have access to a new source of capital in the form of tightly controlled Fed advances. Leadership total compensation packages should be limited to 10x the average (not median) wage of all employees, including contract labor that works on site. One of our largest defense contractors is going to need a bailout quite soon. That's an opportunity.
If this community would suggest it to their representatives, it could start something. It shouldn't be a partisan thing either. When the automakers were in DC begging for their bailouts, some of the toughest treatment they got was from the Republican senators.
Thank you for mentioning Peter Drucker. I assume that he is the same as the author of “Adventurers of a Bystander.” A read that made my blood run cold as he described the takeover of Germany by Adolf.
Same guy. His writings use mid-century language, which includes the old style of pronouns, so one has to look past that. Also, some of the eastern philosophy elements that work so well and which stress the service and enablement aspects of the role of leaders (think Simon Sinek and "Leaders Eat Last") are missing. But other than that, his stuff really is the foundation of modern business leadership philosophy. McGregor, Ouchi, Reddin, and Lewin round out the list of the more progressive writers in the field. That said, none of them have seized upon this notion of Drucker's that the corporation is the critical institution in the way we organize society, and that it should be treated as such. That leads to a very different place.
Don't know about his business acumen but he surely knew what authoritarianism could do to a country. His book is as on target today as it has ever been. He escaped Germany by the hair of his chinny chin chin.
Drucker is generally considered to be the founder of modern business theory. It was his relationship with Alfred P. Sloan that led Sloan to endow a new school of Business at MIT, which went on to include on its faculty many of the giants of the field. Drucker's key observation in his study of GM that led to his book "Concept of the Corporation: was very unsettling to Sloan and his team of executives. That the corporation or big business had become one of the primary, if not THE primary, institutions by which we organize society, and should be treated as such, was something Sloan and his associates really did not want to hear. Of course, the implication is that such businesses should be chartered and regulated for what they are. That said, it is such a dumb obvious thing to say, that they couldn't deny it. Sloan and Drucker remained friends and would regularly dine together whenever they got a chance, for the rest of their lives. If you are interested in my take on it, and the opportunity presented by the mess at Boeing, check out this playlist on my YouTube channel: https://www.youtube.com/@charlemagnesclock/videos
Thank you. I knew how Drucker felt about the Nazis but I didn't assume anything about his business theory. I'll check it out. He wrote one hell of a good book. Probably should be reissued today.
Peter Drucker made the observation in 1946 in his book, "Concept of the Corporation" that corporations had become the central institutions around which society is organized, more so than governmental, religious, or educational institutions. An opportunity to right the ship, in terms of the economy, is rapidly approaching. A huge problem is that there are essentially no rules regarding the chartering of corporations in Delaware and Nevada, which is why they get most of the business. But, a new national corporate chartering process that recognizes the full scope of the fiduciary responsibility of corporate leaders to employees, communities, and customers by licensing the professions of board and executive committee membership (i.e. the whole C-suite). The licensing needs to include a requirement to adhere to a canon of ethics, just like legal, accounting, and medical professionals must. Then, whenever any "too big to fail" corporation comes knocking on Congress's door asking for bailout, part of the deal would be to re-charter it, and require the licensing of the leadership. These charters would become desirable because they would also have access to a new source of capital in the form of tightly controlled Fed advances. Leadership total compensation packages should be limited to 10x the average (not median) wage of all employees, including contract labor that works on site. One of our largest defense contractors is going to need a bailout quite soon. That's an opportunity.
I like this idea Craig. Hadn’t heard of it before. Thank you.
If this community would suggest it to their representatives, it could start something. It shouldn't be a partisan thing either. When the automakers were in DC begging for their bailouts, some of the toughest treatment they got was from the Republican senators.
Thank you for mentioning Peter Drucker. I assume that he is the same as the author of “Adventurers of a Bystander.” A read that made my blood run cold as he described the takeover of Germany by Adolf.
Same guy. His writings use mid-century language, which includes the old style of pronouns, so one has to look past that. Also, some of the eastern philosophy elements that work so well and which stress the service and enablement aspects of the role of leaders (think Simon Sinek and "Leaders Eat Last") are missing. But other than that, his stuff really is the foundation of modern business leadership philosophy. McGregor, Ouchi, Reddin, and Lewin round out the list of the more progressive writers in the field. That said, none of them have seized upon this notion of Drucker's that the corporation is the critical institution in the way we organize society, and that it should be treated as such. That leads to a very different place.
Don't know about his business acumen but he surely knew what authoritarianism could do to a country. His book is as on target today as it has ever been. He escaped Germany by the hair of his chinny chin chin.
Drucker is generally considered to be the founder of modern business theory. It was his relationship with Alfred P. Sloan that led Sloan to endow a new school of Business at MIT, which went on to include on its faculty many of the giants of the field. Drucker's key observation in his study of GM that led to his book "Concept of the Corporation: was very unsettling to Sloan and his team of executives. That the corporation or big business had become one of the primary, if not THE primary, institutions by which we organize society, and should be treated as such, was something Sloan and his associates really did not want to hear. Of course, the implication is that such businesses should be chartered and regulated for what they are. That said, it is such a dumb obvious thing to say, that they couldn't deny it. Sloan and Drucker remained friends and would regularly dine together whenever they got a chance, for the rest of their lives. If you are interested in my take on it, and the opportunity presented by the mess at Boeing, check out this playlist on my YouTube channel: https://www.youtube.com/@charlemagnesclock/videos
Thank you. I knew how Drucker felt about the Nazis but I didn't assume anything about his business theory. I'll check it out. He wrote one hell of a good book. Probably should be reissued today.