Ethical implications of short term focus Publically-traded firms, such as American Airlines, are supposed to have high stock prices when their profitability increases. This often implies that the company’s value is increasing; executives and shareholders benefit from a higher value of stock prices, which leads to increased compensation or returns. Nonetheless, when an organization’s stock price increases devoid of any long term implications, then this could present an ethical dilemma to company managers. Managers are under increased pressure to report continual increases in profits as this serves the company investors’ prime objective, which is to maximize profit. The ethical dilemma stems from the fact that a manager also has the obligation to make full disclosures on company profits. New shareholders may make investments on the basis of what the manager or employees report, so the truth has adverse implications on this group. If senior management is obsessed about short term profits, it may be tempted to use unscrupulous methods like pension fund alterations or stock market predictions to achieve their short term goals. In the end, misguided shareholders may loose a lot of money (Rappaport, 2005). Short-termism in several institutions causes institutions to refrain from necessary long term investments such as research and development, marketing or other forms of improvement. In essence, dwelling on performance in the next quarter will undermine value-maximizing efforts as all the energy and resources go to increases in stock prices. Eventually, these companies will not perform well in the long run. Such senior managers will endanger the survival of the same investors that they were tying to impress. Differing maintenance is unethical to customers and shareholders American Airlines was engaging in unethical behavior by avoiding maintenance of its aircrafts. Most customers pay their air fare with the expectation that they will be transported safely. Therefore, prices quoted by the Airline are inclusive of maintenance or a promise of safe travel. When the company obtains money from travelers without delivering all the assurances, then it is engaging in unethical behavior. All passengers expect that regulators and maintainers will do their job in guaranteeing safe travel. Aside from honoring its end of the financial agreement with the customer, American Airlines was also endangering the lives of these travelers by putting them in aircrafts that had not been properly inspected and maintained. When an organization knowingly makes decisions with the full knowledge that it could cause harm, then that institution is creating a health hazard among those concerned. In essence, this could lead to massive injuries or even death (Patankar, 2012). There is no doubt that such actions are highly unethical. Manipulating earnings by differing maintenance could also have a double effect as the company’s reputation could be compromised. American Airlines’ brand image has a direct effect on the amount of business it gets. Clients often look for information about an Airline before flying it, and if American Airlines has a poor maintenance record, then many potential customers will take their business elsewhere. This may in turn destroy its prospects for revenue growth and hence its sustainability. Therefore, aba