Management as a Liberal Art Research Institute

A Functioning Society and Management as a Liberal Art — Peter Drucker’s Beliefs and Values

Minglo Shao

PUBLISHED:

June 20, 2020

“To make our institutions perform responsibly, autonomously, and on a high level of achievement is thus the only safeguard of freedom and dignity in the pluralist society of institutions. Performing, responsible management is the alternative to tyranny and our only protection against it”. - Peter F. Drucker


World-renowned as “the father of modern management”, Peter Drucker believed that although he was famous for establishing management as a discipline, he was actually a “social ecologist”, and his real concern was the individual’s existence in the social environment. In Drucker’s view, management was a newly emerging tool for improving society and life. He was the author of 39 books, only 15 of which dealt with management. The others were related to community, society, and polity. Only two books —Management for Results and Innovation and Entrepreneurship —were devoted to business management.


Drucker knew that human nature is imperfect, so nothing humans create, including the societies they design, can be perfect. He didn’t hold high expectations or ideals for society; he only hoped that it could be less painful and more tolerant. However, a society still has to have basic functions; it has to provide the people living in it with the conditions for normal life and work, and it has to give individuals identity and status. These functions or conditions are necessary for a society in the same way that normal functions are necessary for a living body.


It is worth noting that society is not the same as nation-state, because “nation-state(government)” and “family” cannot provide the necessary functions of a society. This is evidenced by the fact that some powerful countries have only fragile and fragmented societies. In Drucker’s view, in the industrial age, a normal functioning society must consist of at least three types of institutions: government, business, and non-profit, each of which plays a different and unique role. Individual organizations within each of those categories must have distinctive performances, which requires them to have power centers and decision-making mechanisms. The power centers and decision-making mechanisms should give each individual a place within the organization, allowing them to use their strengths, to play a part and contribute, therefore obtaining livelihood, identity, and status. In the past, nation-state did not have such power centers or decision-making mechanisms; in other words, “management” is the new “polity”. (Drucker collectively refers to all three power centers as “polity”: management systems of business, management systems of nonprofit institutions, and governmental systems of nation-state, because these three sectors all hold power but each has different objectives. Business and non-profit organizations have the power to allocate society’s resources in order to provide specific products and services; the government has the power to arbitrate and intervene to maintain fairness and justice throughout society).


Near Claremont University in the United States, there is a small Drucker memorial — the Drucker House Museum — in what was once Peter Drucker’s California home. On entering the museum, one sees a famous quote in a prominent place facing the entrance of the living room:


“To make our institutions perform responsibly, autonomously, and on a high level of achievement is thus the only safeguard of freedom and dignity in the pluralist society of institutions. Performing, responsible management is the alternative to tyranny and our only protection against it”.


When the museum opened, the Drucker Institute’s colleagues asked themselves, if they were to choose a quote from Drucker’s publications that sums up the significance of his work to the world, what would it be? They eventually chose the above passage.


If you are familiar with Drucker’s life and how his beliefs and values were formed, you’ll surely agree with their choice. From The End of Economic Man, his first book, to A Functioning Society, the last volume that he completed independently, a common thread runs through all his work: resistance to totalitarianism and defense of the individual’s freedom and dignity.


There is a great difference between totalitarianism and authoritarianism. It was not until the 20th century, with the rapid advancement of human knowledge and capabilities, that conditions arose for the centuries-old tradition of authoritarianism to mutate into totalitarianism. Totalitarianism seeks to thoroughly manipulate and control every human being, flesh and spirit, to expunge their compassion and conscience, transforming them into humanoid machines that fulfill the dreams of individual totalitarian rulers. Under totalitarian rule, loyalty to leaders is everything; personal thoughts, feelings, desires, and goals are superfluous and must be eliminated. The 20th century brought wars, revolutions, and movements that caused unprecedented disasters and human suffering. Whether Nazism (National Socialism), Fascism, or Communism, all are “masterpieces” of totalitarianism. The rise of Hitler and Nazism, which the young Drucker lived through, is among them. To best understand how Drucker’s experiences influenced his beliefs and values, read his Adventures of a Bystander. To see what totalitarianism is and why the masses support it, read his The End of Economic Man, with the subtitle “The Origins of Totalitarianism”.


Fortunately, history’s evolution has not always been so dispiriting. Since the Industrial Revolution, especially from the 1800s onward, in the last 200 years, productivity has increased dramatically, not only creating vast material wealth but also bringing profound changes in the social structure. Eighty years ago, Drucker perceived and pointed out the formation of a new pluralistic, organizational society: Emerging enterprises and nonprofit institutions fill the gaps and empty spaces between “nation-state” (government) and “family” in the social structure of the past.


Based on that foundation, universal education and the rise of the knowledge worker are creating a knowledge economy and a knowledge society, and information technology has accelerated all these changes. It should be noted that “knowledge society” and “knowledge worker” are terms Drucker coined. “Knowledge workers” broadly refers to those who possess and apply specialized knowledge and work to create useful products and services for society. This includes entrepreneurs and executives, professionals, and technicians in any organization, as well as independent professionals, such as accountants, lawyers, consultants, trainers, and so on. Today, in the 21st century, owing to the development of knowledge and the ever-widening area to which it is applied, individuals and individual institutions are no longer alone and helpless. Having mastered certain types of knowledge, they have freedom of choice to decide where and how to work and the power to influence others. Knowledge workers and the knowledge-based organizations they formed no longer resemble traditional intellectuals. Knowledge workers’ unique characteristics are their independence and autonomy. They can integrate resources, build their own organizations or start new businesses, create value, and foster economic, social, cultural, and political changes. Traditional intellectuals depended on and were subject to government authorities, and could only act on platforms provided by those authorities.


This is an epoch-making, far-reaching change that has taken place not only in Western developed countries, Japan, and other democracies but also in many developing countries still under authoritarian or even totalitarian rule, such as in today’s China. In totalitarian countries, rulers instinctively and inevitably treat independent and autonomous organizations and knowledge workers as potential threats, suppressing or even banning them. But this can have only one consequence: the hollowing out of society and the economy, which in turn will undermine the basis on which any regime depends, ultimately leading to totalitarianism's collapse. To put it in popular terms, the wave of freedom and democracy now sweeping the world is irresistible; totalitarian rulers, no matter how ostensibly powerful and arrogant, will inevitably be drowned by it.


A healthy modern society is made up of pluralistic organizations. Of the three organizational categories — government, business, and nonprofit; businesses and nonprofits are comparatively more constrained by the market, the public, and the government. Therefore, their managements are less likely than the government to take the road to totalitarian rule (except for businesses and nonprofits that are de facto government proxies). That’s why, in Drucker’s view, businesses and nonprofits are more important and worthy of hope than governments. Nonetheless, they may still fail to achieve the “performing, responsible” operation that Drucker expects, either due to lack of management or mismanagement, providing space and opportunity for totalitarian governments to monopolize social resources and strip individuals’ rights. The rise of knowledge workers in all organizations, including the Internet-era’s virtual work community, has provided the foundation and conditions for a new era of management, posing a challenge to the traditional “carrot-and-stick” approach to management. In response to this reality, Drucker researched, established, and constantly strove to improve the discipline of modern management.


On January 18, 1999, when he was almost 90 years old, Drucker answered the question, “What is my most important contribution?” This is what he wrote:


“That I focus this discipline (management) on People and Power; on Values, Structure and Constitution; AND ABOVE ALL ON RESPONSIBILITIES - that is focused the Discipline of Management on Management as a truly LIBERAL ART”.


Dubbing management discipline a “liberal art” was Drucker’s brainchild, reflecting his unique perspective on management. This is obviously important, but in his many works, there is little further explanation of it. The most complete exposition is found in the fifteenth chapter of his book The New Realities, entitled "Management as Social Function and Liberal Art”:


“Thirty years ago, the English scientist and novelist C.P. Snow talked of the ‘two cultures’ of contemporary society. Management, however, fits neither Snow’s ‘humanist’ or his ‘scientist.’ It deals with action and application; and its test is results. This makes it a technology. But management also deals with people, their values, their growth and development—and this makes it a humanity. So does it concern with, and impact on, social structure and the community. Indeed as been learnt by everyone who, like this author, has been working with managers of all kinds of institutions for long years, management is deeply involved in spiritual concerns—the nature of man, good and evil.


Management is thus what tradition used to call a liberal art: ‘liberal’ because it deals with the fundamentals of knowledge, self-knowledge, wisdom, and leadership; ‘art’ because it is practice and application. Managers draw on all the knowledge and insights of the humanities and the social sciences—on psychology and philosophy, on economics and on history, on the physical sciences and on ethics. But they have to focus this knowledge on effectiveness and results—on healing a sick patient, teaching a student, building a bridge, designing and selling a ‘user-friendly’ software program”.


As one who has many years of practical management experience and has read nearly all of Drucker’s works, I have often pondered why Drucker called management a “liberal art”? I finally realized that this was not just a beautiful and unconventional act but was a characterization of management; it revealed management’s essence and pointed out the proper direction for managerial efforts. At a minimum, this includes the following implications:


First, the most fundamental management issue, or the key to management, is how managers and individual knowledge workers regard and handle the relationship between people and power. Drucker was a Christian. His faith and his life experiences were mutually confirming and had a profound impact on his research and writing. In his view, man should not have power. Only humankind’s creator, God, master of all things, has power. The Creator is always superior to humans. After all, human nature is weak and cannot resist the temptation to acquire power or withstand its trials. Therefore, a person can only possess authority. He is authorized by the Creator because of his character, knowledge, and ability, which are effective only at a certain stage and in certain actions. This is true not only for individuals but for the entire human race. In democratic countries, “the people are sovereign”; their power is also a kind of authorization granted by the Creator. Under this authorization, human beings are only “tools”—they have free will but must also accept responsibility. Human beings are the Creator’s tools and they cannot become masters; They cannot manipulate and control fellow humans according to their own intentions, nor should they become tools for the manipulation and control of others. Only by recognizing this will people gain both humility and a sense of responsibility; only then will fairness and justice—which the Creator alone commands and which can only summon and be revealed to humans—guide their actions. Moreover, people must constantly examine themselves and willingly conform to society's norms and constraints. 


Second, although human nature is imperfect, every person comes from the Creator and bears his image and good intentions. In this sense, they are all equal to each other, all have their value, their creative abilities, and their functions, and should be respected, and encouraged to create. As stated in the American Declaration of Independence, all men are created equal, and every person has innate, self-evident and inalienable rights. The fundamental reason why “Drucker’s” management discipline can make a difference stems from just this conviction. Does one believe that every person has goodwill and potential? And does one thus really treat people equally? These core values and convictions ultimately determine whether one can respond to Drucker’s management knowledge and whether one can understand and implement it.


Third, in knowledge societies and knowledge organizations, every worker, to some extent, is both a knowledge worker and an executive. In that, they can use their expertise to authoritatively influence other people and organizations — knowledge is power. But power must be governed by responsibility. And performance and results indicate how effective an executive has been in exercising responsibility. Power that accounts to performance and results is legitimate, that is, it is represents authorized authority; otherwise, it becomes “might”, which Drucker is firmly opposed to. The importance of performance and results lies not only in economic and material aspects but also in the psychological aspects that people tend to overlook. If managers and leaders continually fail to solve real issues, a despairing public will irrationally choose to rely on and obey powers that promise a “perfect society”, and willingly surrender their freedom and dignity. This is why Drucker repeatedly warned that if a management fails, totalitarianism will take its place.


Fourth, does management have other responsibilities besides getting organizations to achieve performance and results? Or to put it another way, are performance and results limited to quantifiable economic gains and wealth? In addition to providing customers with inexpensive, high-quality products and services, and earning reasonable profits for shareholders, can an industrial or commercial enterprise become a good, responsible “social citizen”? Can it help its employees enhance their character and competence, turning the organization into a “moral community”? This might seem too demanding, but it is reasonable. More than ten years ago, I worked with a multinational logistics corporation that asked itself and found it was possible to put it into practice. This means that we must learn to design moral and ethical demands and economic goals into the same workflow, the same set of weighing systems, and into every method, tool, and model of operation. Today, it is gratifying that more and more organizations are beginning to take this issue seriously and responding positively to it in their respective fields.


Fifth, “博雅技藝的管理” (management as a liberal art) or “博雅管理” (liberal-art management) are lovely Chinese translations, but they’re a bit problematic. Judged from the three requirements of translation — 信 xin (fidelity), 達 da (clarity and flow), and 雅 ya (elegance), the rendering is elegant but is not faithful enough to the original. Translated directly into Chinese, “liberal art” would be “free art” (自由的技藝); that is, freedom from restraints, a liberal art that lets people throw off restraints and attain spiritual and physical freedom. To put it another way, to become a free person, one must master an art. In ancient Greece and Rome, only “freemen” were permitted to learn such knowledge and skills; slaves neither needed nor were permitted to study them, because only “freemen” bore the exalted responsibilities of a citizen. However, in the earliest traditional Chinese-character editions of Drucker’s works, “liberal art” was translated as 博雅藝術 boya yishu, probably to take advantage of the positive connotations that terminology has in the Chinese language. I feel that “自由的技藝” (free art) is closer to the original English meaning. “Liberal” is freed. “Art” can be translated as 藝術 yishu, but management must be applied, it must perform and produce results, so it is first and foremost a “skill (技能)”. On the other hand, the management’s object is people’s working. When dealing with people, managers must face the good and evil inherent in human nature, as well as people's ideas — emotional and rational — which can change on a moment’s notice. They also must face the same issues within themselves. When viewed from this angle, management is an “art” involving subjective judgment. Therefore, “art” is more suitably interpreted as技藝. “Liberal” (自由) and “art” (技藝) combined is “liberal art” (自由的技藝).


Finally, I’d like to say, the reason I've taken such pains in translating “liberal art” is not just to produce a “correct” Chinese equivalent. More importantly, it’s to stress that management is not what people commonly mistake it for: a study of how to succeed, either personally or organizationally. Its aim is not to help an enterprise make money or achieve the highest efficiency in production; nor is its aim to help a non-profit organization win a good public reputation. Management aims to allow every person to live in a healthier, less harmful and painful human society and community. It is to allow every worker to freely choose the responsibility one is willing to bear in that society or community, according to one's innate goodwill and potential, to freely use one's talents to create value that is useful to others, thus fulfilling one’s responsibility. Moreover, in the process of that creative work, to live out human dignity and grow into a better and more capable person: They have pragmatic knowledge and skills, but are not arrogant or vain; they pursue psychological and spiritual sublimation, but are not jaded or cynical; they revere the sanctity of natural creation, but are not callous or cold-hearted. As a “social ecologist”, this is what Drucker defined and anticipated —"Management as a Liberal Art” or “liberal-art management”, the terms’ true meaning.


Minglo Shao

Licensee of the “Peter F. Drucker/Peter Drucker” brand in Taiwan and China

By Bo Yang Ph.D. April 2, 2025
One can use Drucker’s ideas to understand the political and social scene in China today. Let’s start with a story. Fyodor Dostoyevsky published his novel The House of the Dead in 1862. Dostoyevsky actually spent time in a Siberian prison camp, and drew on that experience as he depicted prisoners in the novel. These prisoners were seen as hardened criminals, and go through an incredible transformation at Christmastime. They are permitted to put on a play. Suddenly, these hardened criminals are bursting with creativity. They’re writing, directing, designing costumes, an entire production process involved in creating this theatrical play. A completely different side of them comes out. This story illustrates a point that is at the heart of Drucker’s work. This is the idea that no system, no matter how restrictive or oppressive, can completely destroy our humanity. Even within a place as terrible as a prison, there is still room for agency, for choosing how we respond to our circumstances. Even with limitations, they found a way to express themselves. The prisoners find a way to carve out a space for freedom. It makes one think about those times when we are boxed in by expectations, or stuck in a rut. Maybe there is always a way to break out. This ties in perfectly with what Drucker always talked about in terms of individual responsibility. It’s not about waiting for someone to give you permission, or for the perfect situation to magically appear. It’s about realizing that we always have choices, and those choices make us who we are. So these prisoners are finding freedom in this highly unlikely place! But we can see how this links to Drucker’s thoughts on societal order. Think about it: Are we all prisoners in some way? This is where Drucker’s own experiences in 20 th -century Europe become incredibly relevant to our own lived experience today. He saw the rise of totalitarian regimes firsthand. He likened them to “beehives” and “anthills” where individual freedom was crushed by the weight of the state. Like everyone is marching in line; there is no room for being different. Let us think about this: even in societies that aren’t explicitly totalitarian, we can still build those same kinds of structures: prisons of conformity and control, where everyone is expected to be the same. Drucker saw this as the complete opposite of the chaos of disorder. A healthy society has to find that balance. You need a middle ground of diversity, this multi-layered system where individuals can find meaning without being crushed by a large, powerful authority. Walking a tightrope between too much order and too much chaos. Too much order represents the beehive model. Too much chaos creates the jungle, where it is everyone for himself. Finding the middle ground is a challenge. It’s the balance between individual freedom, and a sense of order. In many ways, Chinese society places value on order and control. But Drucker’s ideas about personal responsibility and gives one a choice to exercise individual freedom even within a system of constraints. How do we find those little spaces for freedom within those constraints? You can’t change the system, but you can make choices that allow you to exercise your own agency, and align your actions with your beliefs. That brings us to one of Drucker’s most mind-blowing ideas: it’s what he called the “mechanistic world view.” He thought that seeing the world as a giant machine with humans as cogs in the system disrupts how we see the concepts of freedom and responsibility. Imagine a factory with an assembly line, where each worker has their one specific job. They do this over and over again, with no room for creativity, no sense of ownership. That’s the essence of the mechanistic world view: we all become robots, following a program. Freedom, in this word view, becomes chasing simple pleasures, like comfort. There is no sense of purpose. One just goes through the motions. The focus is on efficiency and output, not the human factors that go into work. Responsibility is reduced to following orders rather than making thoughtful choices. If the mechanistic world view is the problem, what is the alternative? Drucker gives us an alternative: the teleological world view. This is the view that the universe is not a static machine, but rather a dynamic system where everything is connected from atoms to humans. Everything contributes to create a new order. In this world view, freedom isn’t doing what you feel like, or feels good, but developing your potential as a human being and using that to contribute to something bigger than yourself. Responsibility isn’t about following rules, but understanding the impact your choices have. Thinking back to the prisoner story we began with: their decisions had impacts. They tapped into their potential, and found a shared purpose. This resonates with Eastern Philosophical ideas of individual cultivation and harmony with the cosmos. Drucker’s ideas, while grounded in Western traditions, transcend cultural boundaries. How much of our lives, regardless of culture, are actually run by this mechanistic mindset? In work, school – are we really encouraged to think for ourselves? Or to contribute to some bigger purpose? Even in systems that feel very mechanistic, there will always be ways to find pockets to express freedom – places where we can make a choice and do something meaningful. It may not be easy, but it is always there. It starts with recognizing that we have a choice. We can be cogs in the machine. Or we can choose to be creative agents of change. We are reminded of where we began, with Dostoyevsky, who said “man is created for freedom.” Even when things are difficult, we are hardwired for expressing ourselves and deciding our own path. It’s all about finding those stages within the prison walls. The limitations exist in Chinese society; but that doesn’t mean that we can’t have a free existence. Drucker’s ideas, while Western, have resonance in other cultures. Freedom is not just a large, abstract concept. It’s also about the everyday choices we make within our specific cultural contexts. The little ways we express ourselves and choose to build something new instead of accepting the status quo. Making things more beautiful and meaningful, even if it’s just in our own small world. Which brings us back to Drucker’s definition of freedom. For him, freedom involved responsible choice. It is not right as much as responsibility. It is not something given to us. It’s something we must work for and earn. And we choose it every day through our actions.  One final thought: If life is a stage, what role would you play? What kind of performance are you giving to the world? Are you building prisons? Or are you building stages? Are you choosing freedom and responsibility? Or are you just going through the motions? This is not about easy answers. It’s about finding a world where freedom and responsibility can coexist and thrive.
By Carol Mendenall Ph.D. March 15, 2025
Stories of travels from a distant land to a new start, a land of opportunity, have always been my favorite. My friends come from exotic countries like Syria, Yemen, Portugal, Mexico, Guam, Kuwait, and India. Countries rich with culture and history, but they came to leave behind poverty, lack of education, war, so much war, to be in America. It is the American Dream, the thread that all of our families whose origin stems from migration at some point in time share. We all come from other lands in search of a new beginning just at different times. My friends came between the ages of 10 and 19, and started as ranch hands, deli shop workers, students working retail, and farmers. Decades later they are a restaurant owner, chief engineer, gas station owner, retired military, and doting grandma. These hard-working individuals are exemplifying the American Dream. First-generation born American descendants of immigrants face a unique challenge. Though the average mantra of a teenager is ‘my parents wouldn’t understand what it is like’ has been heard by many, especially educators, it is believed and demonstrated in the behaviors of first-generation U.S. born children from immigrant families. Research states that ethnic minority males are most likely to become affiliated with gangs (McDaniel, 2012). Different research posits that the likelihood of gang affiliation has to do with the “composition of the neighborhood” (Herbst, 2013). With that being said, I need to point out that ethnic minorities new to the country tend to live in community together, so one does not negate the other. This generation believes their parents only know of the ‘old country’ and are out of touch with American ideology. Therefore, they look for people who are in the know. Many do not fall into this trap of gang life, but more do from the first-born generation than any other. It is disheartening to know friends and acquaintances have come to this country to create a ‘better life’ for themselves and their offspring only to have a child choose the gang life over family. Social Responsibility and Global Corporate Citizenship Why is this a topic of a business journal, you may ask. We who have come before, who have a foundation here, can support newcomers in their individual growth and family support. Social responsibility, specifically Corporate Social Responsibility (CSR), ‘global corporate citizenship,’ and ‘stakeholder management practices’, work on the premise that the welfare of all can be supported by the decisions of businesses (Windsor, 2001). There is an economic, environmental, and social responsibility that organizations have to the general public. Businesses need to have societal benefits in mind because governments do not always do so. Corporate Social Responsibility can be demonstrated in many ways which benefit society. Palacios (2004) posits business can be the positive context of changes in employee citizenship and ‘non-territorial forms of national identity’. As individuals increasingly create self-identity through the workplace and other organizations, it is understandable that societal needs and ‘common concerns’ such as “social equity, human rights and environmental preservation” (p.386) be shared through the business platform (Palacios, 2004). Therefore, education on the prevention of youth affiliation with gangs would be fitting in this context. Gang affiliation negatively affects the health of youth and organizations can have a positive impact. The National Gang Center (NGC) shares risk factors and strategies of intervention and prevention. NGC (2025) posits that youth are enticed by the social activities of a gang or show a range of risk factors, typically 7 or more, that push the individual away from home culture and toward a gang. These risk factors include violence in the home, early dating, academic struggles at school, limited belief in self-success at school, negative labeling by in-groups, concern for safety, community conditions, individual characteristics, peer-group influence, and abuse both physical or sexual (NGC, 2025). Individual characteristics include: “antisocial beliefs, early and persistent noncompliant behavior, early onset aggression/violence, few social ties, high alcohol/drug use, impulsivity, lack of guilt, life stressors, low intelligence, low perceived likelihood of being caught, neutralization, medical/physical condition, mental health problems, poor refusal skills, victim and victimization, family poverty, high parental stress/maternal depression, parent proviolent attitudes, poor parental supervision, poor parent-child relations or communication, sibling antisocial behavior, unhappy parents.” These characteristics are not an exhaustive list and do not include the special circumstance of being a first USA-born child of an immigrant family. Nor do all children with some of these characteristics become gang members. Studies show there is no exact or repeating pattern for why some children and teens chose gang membership, but having 7 or more factors does increase the risk of membership by 13% (NGC, 2025). Researchers indicate that most want to join a gang for socialization, which must be alluring to youths of immigrant families that want to belong to the American culture. Gang Prevention Preventions and interventions include reaching students between 5th and 12 th grades and include positive home, school, neighborhood and community interactions such as extra-curricular activities that build self-esteem and the belief of educational and life fulfillment. A key factor is instilling positive feelings between children and their parents. Positive school factors include improving academic performance, positive and safe school climate, and a positive relationship with key personnel on the campus. Prevention includes a moderate level of parental involvement, which involves warmth and control, the ability to react well to conflict, and positive connections with adults outside of the family unit as explained by McDaniel (2012). Immigrants that I have met are active parents who are actively involved in their children’s education and extracurricular activities, but these parents are combatting an additional issue. Their teens assume their parents do not have knowledge relevant to success in America even though they have proved their ability. McDaniel (2012) states that ethnic minority male children make up the largest percentage of gang members. Their children become friends with gang-affiliated minors who seem more knowledgeable of American current events than immigrant parents from a teen’s perspective. Community involvement in social interventions and gang suppression will lead to organizational change according to the National Gang Center (2025). Organizations presenting risk and protective factors to all employees increases the likelihood of gang prevention and, hopefully, can create willing volunteers to be positive role models in children’s lives for those moments when they don’t listen to their parents. Businesses sharing this knowledge with stakeholders provides support for individuals, organizations, and society. As the numbers of at-risk youth diminish, so do the negative impacts of gangs. This can be achieved through organizations willing to see their social and global influence. Dedicated to A.S. who lived a difficult and short life riddled with the strife of trying to get away from the gang life, which proved easier than getting away from the drugs he was introduced to by that ‘gang family’. To his family and two children who remain. References Dima, J. (2008). A Stakeholder Approach to Corporate Social Responsibility: A Fresh Perspective into Theory and Practice. Journal of Business Ethics : JBE; Dordrecht 82(1) 213-231. Herbst, E. (2013). The likelihood of gang membership: Immigrant generational differences among hispanic youth. A thesis for Graduate College of Bowling Green State University. McDaniel DD. (2012). Risk and protective factors associated with gang affiliation among high- risk youth: a public health approach. Inj Prev. 2012 Aug;18(4).253-8. National Gang Center. (2025). Comprehensive Gang Prevention, Intervention, and Suppression Model. US Department of Justice. Retrieved from https://nationalgangcenter.ojp.gov/spt/Programs/53 Palacios L., J.J. (2004). Corporate Citizenship and Social Responsibility in a Globalized World. Citizenship Studies 8(4). 383–402 Windsor, D. (2001), The future of corporate social responsibility, The International Journal of Organizational Analysis, 9(3). 225-256
By Carol Mendenall Ph.D. March 15, 2025
I had thought that the concept of Corporate Social Responsibility (CSR) was a fairly recent development based on my experience in business and business education. Though two social reformers did not use the term CSR, their actions showed that all stakeholders are responsible for making a positive impact on society. My familiarity with the work of management and social theorist Peter Drucker, who actively published from 1939 to 2005, led me to the conclusion that organizations have a vital role in society. While Drucker may not have used the term CSR, he certainly advocated much of what encompasses this concept. Drucker’s work includes references to the need for social responsibility in business (Drucker and Maciariello, 2008). While recently sitting in a church service, I listened to a recitation of the work of the English theologian John Wesley, who died in the year 1791. Wesley was a social reformer with striking similarities to Drucker. That experience motivated me to look more into the parallels between Wesley and Drucker, and to see the connections of both men’s thoughts to what we now term Corporate Social Responsibility. It seems that this concept is perhaps far older than I thought, showing the sustainability of this idea. A Definition and Use of Corporate Social Responsibility Corporate Social Responsibility can be defined as follows: Corporate social responsibility (CSR) is a business practice that involves integrating social, ethical, and environmental concerns into a company's operations. CSR can also be defined as a company's commitment to respecting the interests of its stakeholders (Google Search, 1-27-25). Examples of CSR include ethical leadership and management techniques, environmental involvement, and being fiscally sound and transparent within reason. It is evident that consumers value CSR activities such as limiting carbon footprint and supporting environmentally friendly fabrication solutions. Lately, some have been selecting products based on that business’ social platform. Society has shown through consumer choice and social media that CSR inspired behaviors are preferred. Many consider CSR as a 21 st century concept, but let’s see how earlier social theorists articulated this concept – one in an era before corporations existed. John Wesley (1703-1791) John Wesley, the ‘Founder and Father of Methodism,’ was a priest for the Church of England who later left this denomination to start his own (GCAH, 2025). In 1727, Wesley was given a fellowship at Lincoln College (Vickers, 2003). Westley became a failed missionary in 1735 and three years later began to speak out against predestination doctrine, arguing that grace and redemption were available to all. He began journaling and sharing his evangelical works through ‘field preaching’ (GCAH, 2025; Vickers, 2003). These actions led to speaking out against corruption in the churches of the day and the need for social reform, including abolition of slavery (Vickers, 2003). According to GCAH (2025), he established Methodist Societies and created their charter in 1784. The Methodists continued based on his writings. Murray Norris (2017) concludes that followers of John Wesley did not separate work life from personal religious development. Wesleyans included charitable donations of volunteerism and finances, high work ethic, and greater outreach as part of their religious outpouring. This early form of social responsibility stemmed from Wesley’s work on economics, politics, and social issues such as workplace safety, prison reform, and education (Nutt & Wilson, 2010; Lunn, 2010). Lunn (2010) states that Wesley was focused on the well-being of the individual worker. Instead of relying on organizations to change society, he supported individuals who were champions of social improvements. Wesley grounded his work in the theology that each person is made in God’s image. Even though the majority of the work was for and with individuals, Stranger’s Friend Societies and some private entities supported Wesley’s efforts to equalize the status of individuals regardless of social class (Murray Norris, 2017; Lunn, 2010). Peter Drucker (1909-2005) Peter Drucker, often called the Father of Management, was primarily interested in society, communities within society, and polity according to A Functioning Society published in 2003. Drucker (2003) posits that management is a knowledge-based social function that influences society and economy (p.11). His first book involving corporations was Concepts of Corporation in 1946 though he did not use the phrase Corporate Social Responsibility (Drucker, 2003). Drucker was raised in Austria and went to Germany for both work and education (2003). He was introduced to the issues of a totalitarian dictatorship when Hitler came to power. Drucker worked for a newspaper in Frankfurt at the time and faced first-hand the censorship of the Nazi party. His experiences brought forth the book The End of Economic Man (1938-1939) and later The Future of Industrial Man (1942). Peter Drucker saw that “social institutions” were “power centers within industrial society” (Drucker, 2003, p.11). Later, Drucker focused on the influence management has on the individual worker as well as on individuals themselves. Unlike Wesley, Drucker supported social change through and with organizations in balance with individuals. Concepts he created teach managers to be people-oriented instead of task-oriented and to consider investment in workers to be a pillar of good business. He found that many organizations had the primary drive of financial stability. Though a business must be stable monetarily to be a functioning organization, it is not the only pillar of ‘good business.’ Rao (2021) reminds us that Drucker posits that “people are our greatest asset” (p.6). Time must be spent on investing in employee development. Another example of how Drucker viewed the balance between society/organizations and the individual is the concept of status and function, a term he learned combing the library in Hamburg, Germany at the age of 18 (Drucker, 2003). Status and function is defined by Drucker in terms of how an individual fits within a social group and what that person’s purpose is independent of any social labels or groupings (Drucker, 1942). This is because status defines where an individual fits within the group as an in-group or out-group member and the role given to that person. Function is how an individual sees themselves with respect to life’s purpose and whether the purpose of society fits within a person’s individual viewpoint. There is a symbiotic relationship between status and function (Drucker, 2003). Status and function can be self-defined or group-generated and is tied to social responsibility and discussed above as CSR. Drucker's emphasis on integrity, social responsibility, and ethical behavior ties leadership decisions and actions in these areas to an organization’s sustainability. Drucker points out the need for sustainability in Managing the Non-Profit Organization and the necessity to balance mission, vision, financial stability, resources and marketing (Drucker 1990). One can conclude that these are of equal importance to a for-profit organization as well. Connections between Wesley and Drucker Related to CSR Wesley focused on “slavery, economics and ethics, his work on aid to the poor, prison reform, and education beyond his scriptural teachings” (Lunn, 2010). Drucker held that individuals and organizations needed to lead the standards of society. These two activists spoke to the issues of the time, and people paid attention. Average people began considering the strategies suggested to alleviate concerns, prevent future negatively impacting events, and create better work environments. These gurus of social responsibility pointed out deficits, gave direction, and inspired others. We stakeholders of today’s society need to continue this work. Uses for CSR Today As we continue to shift from the industrial age to knowledge-based work and work in the service industries, we need to maintain balanced organizations that consider social problems in similar regard as they do business issues. Activities that have been categorized with CSR include organizational ethics, environmental issues, philanthropy, ethical responsibility, charitable global giving, community engagement, economic responsibility, and healthy workplace culture (IBM, 2023). I can see connections between these categories and both Drucker and Wesley. Through similar methods, these social reformers created a sustainable societal norm that created a better environment for individuals in the workplace and society as a whole. We need to maintain these ideals by fostering differences in management and organizational climate and culture. Currently, CSR has been associated with job satisfaction, high performance, and employee trust within organizations that are engaged in social responsibility activities (Brieger, 2019). The benefits of CSR go beyond creating equitable workspace. How do we keep these positive behaviors in the forefront of future organizations and constituents? Sustainability Wesley focused on making safe and ethical workplace conditions a priority. Drucker posits that organizations must measure how well they create and maintain work cultures that support the needs of all stakeholders, status and function, financial stability, innovation, and environmental impact. Organizations that create and maintain a focus on CSR topics such as healthy workplace and environmental issues promote a better society while keeping clientele who share the same interests and concerns. This concept of social responsibility goes far beyond corporations. It lends to sustainable organizations. My question is, who will make sure these concepts are carried into the future? We will. References Brieger, S. A. (2019). Too Much of a Good Thing? On the Relationship Between CSR and Employee Work Addiction. Journal of Business Ethics. Springer Nature B.V. Drucker, P. (2003). A Functioning Society. Transaction Publishers Drucker, P. (1990, 2010). Managing the Non-Profit Organization. Harper-Collins, e-books. Drucker, P. (1942). The future of industrial man. Translation Publishers GCAH, Jan 2025. General Commission on Archives & History: John Westley. https://gcah.org/biographies/john-wesley/ Google Search (Jan, 2025). Definition of Corporate Social Responsibility IBM, Dec 2023. What is Corporate Social Responsibility (CSR)? Found at https://www.ibm.com/think/topics/corporate-social- responsibility#:~:text=Corporate%20social%20responsibility%20is%20the,impact%20is %20measured%20or%20quantified. Murray Norris, C. (2017). Chapter 9 Education, Welfare, and Missions. Oxford Academic. https://doi.org/10.1093/acprof:oso/9780198796411.003.0010 Nutt, P.C. & Wilson, D. C. (2010). Handbook of decision making. Wiley-Blackwell Lunn, J. (2010). Religion & Liberty: John Wesley's Social Ethic. 3.6. Action University. Rao, M.S. (2021). Peter Drucker’s Principles, Philosophies, and Practices. The Journal of Values-Based Leadership. 14.2. Swaminathan, S. (2009). Wesley, John (1703–1791), Methodism, and Social Reform. 1-2. Wiley. https://doi.org/10.1002/9781405198073.wbierp1559 Vickers, J. A. (2003). John Wesley at 300. Historian, (79), 28-33. https://2q21e1s6o-mp01-y- https-www-proquest-com.proxy.lirn.net/scholarly-journals/john-wesley-at-300/docview/275037337/se-2
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