In the Philippine business scene today, there's a critical issue demanding attention: how to

juggle short-term profit goals with the need for sustainable, long-term growth. It's a familiar story
worldwide – businesses feeling the heat to deliver instant financial results, all in the bid to keep
shareholders and investors content. Unfortunately, this often leads to choices favoring quick
wins at the expense of the company's overall health and stability.

For instance, here in the Philippines, companies might resort to aggressive cost-cutting, neglect
Research and Development investments, or compromise product quality just to pump up those
short-term profits. While these tactics might give a temporary boost, the lasting impacts on a
company's reputation, customer loyalty, and competitiveness can be severe.

This short-term profit obsession can make innovation and sustainable practices. If companies
are solely fixated on hitting quarterly financial targets, they're less likely to put money into eco-
friendly technologies, employee training, or community engagement. To tackle this, Philippine
businesses need to find a middle ground, weighing short-term gains against long-term
sustainability. That means adopting strategies that champion innovation, ethical business
practices, and engaging with stakeholders. This way, companies can not only keep
shareholders happy but also contribute to their employees, customers, and the wider
community, ensuring lasting success in our ever-changing business landscape.

Indeed Editorial Team. (2022, December 19). Short-term profits vs. long-term profits (plus
benefits)