Sutherland: Shareholder value short-termism creates psychopathic, untrusted businesses
Rory Sutherland · Rory Sutherland: The Psychology of Advertising · May 30, 2017 · at 1:36:03
Ogilvy UK vice chairman Rory Sutherland contrasts long-term repeat game theory with the short-term incentives driving corporate behavior.
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“And I think the problem with the shareholder value movement, by the way, and short term targets in business, is you're creating in businesses with a focus on the short term, you're creating psychopathic businesses, you're creating businesses which consumers instinctively don't trust or like very much, because everything they do seems to be focused only on the immediate transaction.”
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