Values in Action: Short-Term Wins vs. Long-Term Value

Posted On October 6, 2026 By Arjay Dela Cruz In Blog Articles, Leadership, Professional Development /  3

In business, not every success is created equally.

Some victories create lasting value. Others deliver immediate results while leaving hidden costs for others to bear.

Healthy markets depend on value creation, not value extraction. Value creation occurs when businesses improve products, develop people, solve problems, and build trust. Value extraction occurs when organizations pursue short-term gains by shifting costs onto customers, employees, communities, or future stakeholders.

Economists call these hidden costs externalities.

A company might reduce expenses by cutting quality controls, delaying maintenance, or overlooking environmental responsibilities. Such decisions can improve short-term results, but the costs do not disappear. Instead, they are often transferred to others.

A well-known example of this cost is the case involving the Johns-Manville Corporation’s use of asbestos in buildings in the mid-20th century.  The company became one of the largest manufacturers of asbestos products in the United States. Over time, workers, families, and communities experienced severe health consequences including mesothelioma, lung cancer, and asbestosis.

As lawsuits mounted, Johns-Manville filed for Chapter 11 bankruptcy in 1982 and ultimately created a trust to compensate victims. However, the scale of the harm far exceeded early expectations, and many observers view the case as an example of how society bore significant costs from a product whose risks were not fully reflected in its market price. (Source: History – Manville Trust)

This illustrates an important economic reality: when organizations do not bear the full cost of their decisions, society often does.

The problem is not only financial. It is also about trust.

Consumers may not immediately know when corners have been cut, but they often discover it over time.

This is why the AKPsi founders came back to “square dealing” as one of their over-arching aims — and it remains relevant today.

Square dealing means acting fairly, honoring commitments, and accepting responsibility for the consequences of our decisions. It recognizes that trust, reputation, and long-term relationships are valuable assets that cannot be built through opportunism.

For students and young professionals (and experienced professionals!), long-term value creation can show up in simple ways:

  • Prioritizing quality over shortcuts
  • Following through on commitments
  • Considering who bears the consequences of decisions
  • Investing in learning and development
  • Building trust before seeking immediate rewards

Short-term wins can be satisfying.

Long-term value creates lasting success and better relationships.

Organizations, careers, and economies thrive when leaders focus not only on what works today, but also on what remains sustainable tomorrow.

 

Values in Action

Alpha Kappa Psi was founded in 1904 on a bold idea: that business could and should be a respected profession defined by character, competence, and accountability.

This blog series is designed to recognize the principles that shape healthy markets, ethical leadership, and long-term prosperity.

The founders of Alpha Kappa Psi understood that trust and opportunity require responsibility. Principles are meaningful only when individuals are willing to uphold them, even when doing so is difficult. Accountability helps ensure that commitments are honored, standards are maintained, and organizations remain worthy of the trust placed in them.

More than a century later, this conviction remains central to AKPsi’s identity. Modern organizations operate in environments that demand transparency, responsiveness, and continuous learning. Accountability creates the foundation for each of these qualities by encouraging responsible decision-making and consistent follow-through.

Each post in this series begins with brief factual context and interprets contemporary business themes through the lens of business principles such as Accountability, Integrity, Service, Courage, and Growth.

Values in Action reflects our commitment to developing courageous and principled leaders to succeed in business and to strengthen the systems and institutions that make societal prosperity possible.

 

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Values in Action: The Rule of Law as Economic Infrastructure

Posted On September 23, 2026 By akpsi In Blog Articles, Professional Development /  3

What makes people willing to start a business, invest money, sign a contract, or accept a job offer?

The answer is not simply opportunity. It is confidence.

Confidence in what?

More than a century ago, Alpha Kappa Psi’s founders believed business should be built on fairness, accountability, and merit rather than privilege or personal influence. Those principles still matter today, but they depend on something larger: the rule of law.

The rule of law may sound like a legal concept; however, it’s also an economic one. Every transaction, partnership, and investment depends on a basic expectation that the rules will be applied fairly and consistently….and that there are mechanisms to assure this. When people trust that contracts will be honored and disputes resolved through established processes, they are far more willing to take risks, innovate, and create value.

That’s why economists often describe the rule of law as economic infrastructure. Roads help move products. Networks move information. Predictable laws and fair enforcement create the confidence that keeps markets moving.

Uncertainty is directly correlated with inaction.

When that confidence exists, businesses plan for the future, entrepreneurs pursue new ideas, and individuals compete on a level playing field. When it does not, uncertainty increases and opportunity declines. Business leaders sacrifice the time they would normally use to create value and instead use that time to mitigate ‘down side’ risk.

Rule of law isn’t just handling criminality appropriately. It’s also having the mechanisms available to solve civil disputes.  In a recent example published in the Federal News Network:

“A federal judge ordered the U.S. Department of Veterans Affairs (VA) to maintain its collective bargaining agreement with the American Federation of Government Employees (AFGE) after VA officials sought to terminate the contract. The court found that the union had met its contractual obligations and that the VA’s attempt to end the agreement was inconsistent with the terms of the contract and prior court orders. The judge stated that correspondence between the parties demonstrated ongoing negotiations and that the contract’s extension provisions applied, requiring the agreement to remain in force while negotiations continued.”

Beyond the criminal and civil court structure, “norms” are also critical. For emerging leaders, this principle starts with everyday actions: honoring commitments, following established processes, applying standards fairly, and accepting accountability when mistakes occur. These habits build trust because people know what to expect and believe they will be treated fairly.

The founders of Alpha Kappa Psi understood that strong markets require more than ambition and talent. They require trust in the systems that govern how people work together. The rule of law provides that foundation, creating the conditions for innovation, competition, and lasting prosperity.

Values in Action: Alpha Kappa Psi was founded in 1904 on the belief that business should be a respected profession defined by character, competence, and accountability. This series explores the principles that strengthen markets, elevate leadership, and create opportunity for all.

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Values in Action: Merit, Markets, and the Cost of Favoritism

Posted On August 19, 2026 By akpsi In Blog Articles, Professional Development /  3

More than a century ago, Alpha Kappa Psi’s founders challenged a common reality of their time: opportunity in business was often determined by personal connections, family relationships, or social standing rather than ability.

They believed there was a better way.

Their vision was simple but powerful: business should reward merit. People should earn opportunities through competence, character, effort, and performance, not through favoritism or insider advantage.

That principle remains just as relevant today.

Healthy markets depend on competition. Organizations perform best when individuals are selected, promoted, and rewarded because they can contribute value rather than because of who they know. When merit becomes secondary to favoritism, the consequences extend far beyond individual disappointment. Innovation slows, trust declines, and performance suffers.

Economists have long recognized that competitive systems create incentives for improvement. When individuals and organizations know that success depends on delivering better products, better services, or better ideas, they invest in learning, creativity, and continuous improvement.

Favoritism disrupts that process.

When opportunities are distributed through personal preference rather than transparent standards, talented people may choose not to compete. Some disengage. Others leave. Over time, organizations can lose capable contributors whose ideas might have strengthened performance and helped solve future challenges.

The costs are not always immediately visible.

A 2025 World Bank study of public procurement found that politically connected firms were more likely to win contracts through less competitive processes, yet those advantages did not translate into stronger productivity or employment growth. The research concluded that favoritism can misallocate resources and reduce overall economic performance.*

These decisions may appear small in isolation, but collectively they reduce efficiency and limit the productive exchange of ideas that drives growth.

By contrast, transparent criteria create confidence.

People are more likely to trust decisions when they understand how those decisions are made. Clear expectations, measurable standards, and consistent evaluation processes help individuals see a connection between effort and opportunity. Transparency does not guarantee every outcome will be universally accepted, but it strengthens confidence that the process is fair.

Fair processes also improve performance.

When people believe achievement matters, they are more likely to develop new skills, contribute innovative ideas, and invest effort in long-term success. Organizations benefit from a broader range of talent and stronger accountability. Markets benefit because resources flow toward those creating the greatest value.

For students and young professionals (and experienced professionals!), merit-based leadership can show up in simple ways:

  • Evaluating ideas based on their quality rather than their source
  • Applying standards consistently to everyone
  • Giving opportunities based on demonstrated effort and results
  • Recognizing and rewarding contributions fairly

These practices help create environments where people can succeed because of what they contribute, not because of who they know.

Strong economies, strong organizations, and strong careers all depend on that principle.

When merit is rewarded, competition becomes more productive, innovation becomes more frequent, and trust becomes easier to sustain. The result is a system that benefits not only individual participants but the broader communities and markets they serve.

Values in Action:

Alpha Kappa Psi was founded in 1904 on a bold idea: that business could and should be a respected profession defined by character, competence, and accountability.

This blog series is designed to recognize the principles that shape healthy markets, ethical leadership, and long-term prosperity.

The Alpha Kappa Psi founders recognized favoritism and informal networks that often determined opportunity in their era. They believed business should instead reward merit, performance, and the creation of value.

More than a century later, that conviction remains central to AKPsi’s identity. Markets function best when opportunity is accessible, standards are transparent, and success is earned through demonstrated ability and ethical conduct. Merit-based systems encourage innovation, strengthen competition, and help organizations identify and develop talent.

Each post in this series begins with brief factual context and interprets contemporary business themes through the lens of business principles such as Accountability, Integrity, Service, Courage, and Growth.

Values in Action reflects our commitment to developing courageous and principled leaders who succeed in business while strengthening the systems and institutions that make societal prosperity possible.

*Bulgaria’s Procurement Problem: How Favoritism Limits Growth and Innovation

A 2025 World Bank study of public procurement found that politically connected firms were more likely to win contracts through less competitive processes, yet those advantages did not translate into stronger productivity or employment growth. The research concluded that favoritism can misallocate resources and reduce overall economic performance

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Values in Action: “Square Dealing” Builds Trust

Posted On May 27, 2026 By akpsi In Blog Articles, Professional Development /  3

More than 100 years ago, people often used the phrase “square dealing” to describe someone who was honest, fair, and trustworthy. This was a term that was used by our founding members as well. It meant doing business the ‘right way’ — even when no one was watching.

The phrase may sound old-fashioned today, but the idea behind it is still incredibly important.

Every day, people make decisions based on trust. Employers trust employees to do their work honestly. Customers trust businesses to deliver what they promise. Teams trust each other to communicate clearly and follow through. Without trust, even simple things become harder, slower, and more expensive.

That’s why integrity matters so much in leadership.

Being a principled leader does not mean being perfect. It means being dependable. It means telling the truth, taking responsibility, honoring commitments, and treating people fairly — especially when it is easier not to.

A recent supply chain analysis published by Supply Chain Brain explained how trust between businesses can improve efficiency and strengthen partnerships. Companies with strong supplier relationships were able to share information faster, coordinate production changes more effectively, and solve problems collaboratively during disruptions. The article noted that when trust exists between businesses, “the cost to manage the supplier-buyer relationship decreases” while decision-making and problem-solving become faster.

Trust as infrastructure.

That lesson applies far beyond supply chains.

Strong organizations and strong economies both depend on systems where people are expected to act ethically and where accountability exists when they do not. Trust grows when people believe the rules are fair and consistently applied.

For students and young professionals (and experienced professionals!), “square dealing” can show up in simple ways:

  • Following through on commitments
  • Owning mistakes
  • Giving honest credit to others
  • Treating people with respect

These actions may seem small, but over time they shape reputations, relationships, and careers, and provide us with opportunities in business – and in life – to build trust one decision at a time.

Source: Supply Chain Brain, “Supplier Trust is Becoming a Critical Success Factor for All Global Supply Chains.”

 

Values in Action:

Alpha Kappa Psi was founded in 1904 on a bold idea: that business could — and should — be a respected profession defined by character, competence, and accountability.

This blog series is designed to recognize the principles that shape healthy markets, ethical leadership, and long-term prosperity.

The Alpha Kappa Psi founders recognized favoritism and informal networks that  often determined opportunity in their era. They held a common belief that business instead should be based on fair pay for fair products and services.

More than a century later, that conviction remains central to AKPsi’s identity. Today, business operates in a complex, fast-moving environment that tests judgment and character. Markets depend on trust. Trust depends on transparency, accountability, and consistent standards. These are not abstract ideals; they are the foundations that allow organizations, communities, and economies to flourish.

Each post in this series begins with brief factual context and interprets contemporary business themes through the lens of business principles, such as Accountability, Integrity, Service, Courage, and Growth.

Values in Action reflects our commitment to developing courageous and principled leaders to succeed in business and to strengthen the systems and institutions that make societal prosperity possible.
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Values in Action: Why Principled Leadership Still Matters

Posted On April 8, 2026 By akpsi In Blog Articles, Career Development, Professional Development /  3

Alpha Kappa Psi was founded on a simple but demanding conviction: principled leadership is not optional in business — it is foundational.

In 1904, our founders sought to elevate business into a respected profession at a time when favoritism and informal networks often determined opportunity. They believed merit, education, and character should outweigh cronyism and backroom advantage.

That belief was not merely moral; it was structural. Markets function best when participants trust the system itself. Trust depends on predictable rules, transparency in transactions, and accountability for misconduct.

The founders were aware of the business environment, illustrated by the decades of patronage and scandal that surrounded the New York Customs House, which was only a couple miles from the New York University campus. Although reforms took place in the early 20th century, there remained questions about the political and economic power the Customs House wielded, including the former head of the Customs House, Chester A. Arthur, who became the 21st president of the United States in 1881.

In AKPsi’s tradition and history, this discipline has been mentioned as “square dealing” — fairness, transparency, and honesty in action. Square dealing is not abstract idealism. It is economic infrastructure. It protects honest actors, strengthens institutions, and reinforces confidence in the marketplace.

In complex environments, incentives can reward speed, leverage, or short-term gain. Principled leadership resists those pressures and safeguards the systems that make innovation, opportunity, and growth possible.

That is why Alpha Kappa Psi develops principled business leaders — not simply to succeed within markets, but to strengthen the conditions that allow markets, organizations, and communities to thrive.

Values in Action:
 
Alpha Kappa Psi was founded in 1904 on a bold idea: that business could — and should — be a respected profession defined by character, competence, and accountability.
 
This blog series is designed to recognize the principles that shape healthy markets, ethical leadership, and long-term prosperity.
 
The Alpha Kappa Psi founders recognized favoritism and informal networks that  often determined opportunity in their era. They held a common belief that business instead should be based on fair pay for fair products and services.
 
More than a century later, that conviction remains central to AKPsi’s identity. Today, business operates in a complex, fast-moving environment that tests judgment and character. Markets depend on trust. Trust depends on transparency, accountability, and consistent standards. These are not abstract ideals; they are the foundations that allow organizations, communities, and economies to flourish.
 
Each post in this series begins with brief factual context and interprets contemporary business themes through the lens of business principles, such as Accountability, Integrity, Service, Courage, and Growth.
 
Values in Action reflects our commitment to developing courageous and principled leaders to succeed in business and to strengthen the systems and institutions that make societal prosperity possible.
Read More