Building the Healthy Corporation

The emphasis on quarterly earnings at the expense of longer-term corporate health sometimes reaches absurd extremes: in one survey, executives said they would scale back investments in R&D and marketing to meet their quarterly forecasts–even if these cuts would hurt the long-term prospects of their companies. Since the capital markets value both immediate and sustained performance, companies should embrace a portfolio of initiatives over three time frames: the short, medium, and long term.

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