Peter Drucker makes these foundational statements:

• "There is only one valid definition of a business:to createa customer."
• "To supply the wants and needs of a consumer, society entrusts wealth-producing resources to the business enterprise."
• "Because its purpose is to createa customer, the business enterprise has twoand only twobasic functions: marketing and innovation. Marketing and innovation produce results; all the rest are 'costs.'"

Use the three statements above, Drucker's specific meaning of the termsmarketingandinnovation,and Goddard's specific arguments related to the proper interpretation of the termcoststo defend the economic rationale embedded in this statement by Drucker: "The business that fails to produce an adequate profit imperils both the integrity of the resources entrusted in its care and the economy's capacity to grow. It is untrue to its trust."

LINKS :

Goddard:

https://www.london.edu/think/the-reality-of-costs

Chapter 6 ofDrucker, P. F. (1973).Management: Tasks, responsibilities, practices(pp. 58-73).New York, NY: Harper & Row.