short termism

How Can Businesses Mitigate Short Termism?

To counteract the negative impacts of short termism, businesses can adopt several strategies:
- Long-Term Incentives: Structuring executive compensation to include long-term performance metrics can align interests with the company's future goals.
- Balanced Scorecard: Implementing a balanced scorecard approach that incorporates financial and non-financial metrics can provide a more holistic view of performance.
- Stakeholder Engagement: Engaging with a broad range of stakeholders, including employees, customers, and the community, can encourage a more balanced approach to decision-making.
- Sustainable Practices: Investing in sustainable business practices can ensure long-term viability and enhance the company's reputation.

Frequently asked queries:

Relevant Topics