I have addressed what you said repeatedly in fact, and even gave you concrete examples. The most hilarious part about this is that you make it clear that you’re utterly clueless on a subject you’re attempting to argue confidently about. Here are just a few obvious factors that lead to an emphasis on short-term planning and decision-making.
The primary objective of corporations is to maximize shareholder value. This translates into a focus on short-term financial gains, such as quarterly earnings, to keep investors happy and maintain or boost stock prices. In fact, executive compensation packages are often tied to short-term financial performance, incentivizing managers to focus on immediate results rather than long-term sustainability.
The practice of issuing quarterly earnings reports, while providing transparency, can also reinforce the focus on short-term results. Companies go to great lengths to meet or exceed analysts’ expectations, often at the expense of long-term strategic goals. Likewise, investors, especially those with short-term investment horizons, often expect quick returns and may react negatively to any signs of underperformance, putting pressure on companies to deliver immediate results.
Furthermore, the competition in capitalist markets pushes companies to prioritize short-term strategies to gain a competitive edge, secure market share, or respond to rivals’ actions. The ability to execute short term strategies comes at the expense of long-term planning. What happens five years down the road isn’t going to matter if the company can’t survive the current year.
Overall, the pressure to demonstrate quarterly profits and compete effectively is a fundamental aspect of capitalist enterprise, that leads to a short-term focus that’s directly at odds with long-term interests of companies or society as a whole. Hence why nobody with a clue on the subject was surprised by the way companies behaved with regards to Russian market.
Don’t have to take my word for it though. Here’s an article from the Harvard Law School Forum on Corporate Governance exploring the tension between short-term pressures and long-term value creation in corporate decision-making. …harvard.edu/…/the-modern-dilemma-balancing-short…