Given the nature of such strategic decisions, the question of what is the relevant time frame over which economic value is created or destroyed becomes salient. A short-term focus on creating value exclusively for shareholders may result in the loss of value over the longer term through a failure to make the necessary investments in process and product quality and safety. Such a short-term approach to decision-making often implies both an inter-temporal loss of profit and a negative externality being imposed on stakeholders. That is, managers take decisions that increase.
