Actually trying to solve problems involves risks, hard work, and intelligence. Over the short tern, the visible fuss might depress stock prices and make managers' stock options less valuable, or even reduce their bonuses. Thus management has an incentive to not solve big problems.
“Actually trying to solve problems involves risks, hard work, and intelligence. Over the short tern, the visible fuss might depress stock prices and make managers’ stock options less valuable, or even reduce their bonuses. Thus management has an incentive to not solve big problems.”
Good point, and very true.