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The Causes And Consequences Of Corporate Short-Termism, Mark R. Desjardine

Electronic Thesis and Dissertation Repository

Corporate short-termism is one of the most significant concerns facing companies and society today. It demands that companies maximize profits in the short term regardless of the long-term consequences. Corporate short-termism can destroy long-run wealth generation, fuel job lay-offs, impede innovation, and neglect society’s social and environmental interests. Paul Polman, CEO of Unilever, declares that short-termism, “lies at the heart of many of today’s problems.”

In spite of the potential harm it may cause, corporate short-termism is one of least understood topics in management research. Anecdotal evidence suggests that financial market pressures fuel corporate short-termism, but little research has explored …