While short termism can lead to immediate gains, it often has detrimental long-term effects: - Reduced Innovation: Companies may underinvest in research and development (R&D), sacrificing future innovations for present-day profits. - Employee Morale: Frequent cost-cutting measures, such as layoffs or reduced benefits, can demoralize employees and reduce productivity. - Brand Damage: Short-term strategies like aggressive marketing or poor-quality products can damage a company's brand and customer loyalty over time. - Sustainability Issues: Neglecting long-term environmental or social considerations can lead to sustainability issues, affecting the company's reputation and compliance with future regulations.