No company ever tries to go out of business, ergo they optimize to exist forever or get acquired. Whether the board & management understands how best to achieve that long-term sustainability is another matter and one that shareholders get to vote on.
Why does it seem to always be that way, though? Most every company I see appears very shortsighted with no thought to the long game.
Owners (shareholders) and boards are not full of idiots either. They realize the temptation of short term pumps. Thus, executive compensation is typically shaped to encourage longer-term thinking (e.g. stock that does not fully vest for years, bonuses based on future company performance years out, etc). And if they do reward short-term metrics, it's for a specific reason.
That said, japanese companies tend to have longer time horizons than american companies (decades vs years) and perhaps that's better. But then again, the further out you go, the less your planning will work out. So who knows for sure?
Yep. Arguably an over-fixation on "short term profits at all costs" would be a gross violation of one's fiduciary duty if it puts the long-term viability of the enterprise at risk.
Maybe that's naive and they're just saying one thing and doing another.