A shortsighted focus on factors such as return on equity may cause managers to divert their attention from other key stakeholders.

Question

Quizplus · Accepted Answer

Return on equity is just one aspect of a company's performance and success. Focusing solely on this metric may cause managers to neglect other important stakeholders such as customers, employees, and the environment. A broader, more balanced approach to measuring and managing performance is needed to ensure long-term sustainability and success.

A Shortsighted Focus on Factors Such as Return on Equity