On the Foundations of the Drucker Vision

This is the first of two essays on the influences of Peter Drucker’s exposure to proponents of the Austrian School of economics on his writing and philosophical views. In this essay, I review the major influences that appear to have shaped much of his thinking, focusing mainly on post-World War I European history and the development of the Austrian School. In the second essay, “The Drucker Vision: Corporations, Managers, Markets, and Innovation,” I review Drucker’s writing with the objective of tracing the how his views have been shaped by these influences. I focus, in particular on Drucker’s views of classical economics, the profit motive, corporate purpose, the value imperative, corporate social responsibility, managerial ethics, corporate purpose, innovation, pension funds, and the market for corporate control. The over-arching objective of both essays is to provide clearer interpretation of the meaning of some of Drucker’s most important and frequently misunderstood contributions