Faith Integration

Running head: FAITH & BUSINESS 1

FAITH & BUSINESS 3

Abstract

Integrating faith and business is a commitment that is initiated at the very beginning of an organization. Having faith as the foundation of a business is a standard that should be set as precedent so that it is ingrained in the roots of how employees choose to do business. Keeping this standard and not compromising a business’s integrity is not always easy but should be a priority. This paper discusses how business integrates corporate goals and finance with faith. How a business decides to conduct its business as well as how its faith effects its performance is integrated throughout this paper as well. Businesses also face many challenges during that initial phases of the starting and keeping the moral integrity is key to further success. Finding that balance in business and faith can be difficult but relying on the support of trusted allies and standing firm on God’s word will give you the strength to endure.

The first two topics we learned about in this course are corporation’s goals and governance and accounting finance and performance which makes it suiting that the first part of this essay includes these topics. Financial goals are target goals such as saving for your kid’s college or saving money for retirement. Many people set financial goals in hope of reaching them but some may fail and fall into debt. In 2 Chronicles 15:7 the bible says, “But as for you be strong and do not give up for your work will be rewarded.” God states that he will reward you and he will take care of you in every situation, he is watching, he is listening and he has a greater plan for your life. Corporate governance is another large issue in all companies not just in finance. Corporate governance is known as “the rules under which firms are operating” or “the actual behavior of corporations, in terms of such measures as performance, efficiency, growth, financial structure, and treatment of shareholders and other stakeholders” as stated by Stijin Classens and Burcin Yurtoglu (2013). This means that corporate governance is basically the rules you follow in the financial world. It is important in any situation to have rules and regulations just like it is imperative to have rules to get to heaven.

Financial performance in accounting is also a huge topic to be discussed in the finance world. Financial performance is how well a firm can use all its assets to make more money or bring in more revenue. Three ways to keep up with your financial performance would be balance sheets, income statements and cash flow statements. All of these statements will help gather information on how well your finances are and are likely to help a company manage revenues. Although these statements are usually a good thing sometimes they can give managers a summary of how well you are doing in the company. This makes it more tempting to lie or cheat in order to keep your job. Luke 16:10 says, “One who is faithful in a very little is also faithful in much, and one who is dishonest in a very little is also dishonest in much.” Although you may think that it is easier and won’t hurt anything to tell a little white lie God says that even the smallest amount of dishonesty in one area of life may be dishonest in other areas.

A vast majority of businesses dream of making millions and being one of the largest and most successful companies ever made. Many of these ambitions come with a cost that sometimes requires entrepreneurs to question their beliefs or even forsake them. These obstacles are often faced at the very beginning of the business and towards the end; the process of gaining capital for the business; and paying shareholders their dividends. These stages of the business process can cause a company to compromise its beliefs but relying on faith to overcome these problems will help it succeed.

Gaining capital to start a business is one of the most difficult processes before starting. Gaining the trust of investors and potential partners is key in acquiring the required funds to start the business. The first step is to prepare a business plan. This describes your product, the potential market, the production method, and the resources time, money, employees, plant, and equipment needed for success (Brealey, R., A., 2018). It typically takes multiple investors to acquire the needed capital to open a business and scripture provides the much needed insight during this process; Dishonest money dwindles away, but whoever gathers money little by little makes it grow (Proverbs 13:11, NIV). Integrating faith and sound morals during the initial process of gathering capital and a base of investors will help assure a business keeps its standards while establishing a solid foundation on biblical principles.

Another aspect of business that happens far after the investment phase is paying dividends to shareholders on their initial investments. This is an important phase of integrating faith in business as money can cause people to compromise their standards or morals. “For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows” (1 Timothy 6:10, NIV). Some business take advantage of its initial investors forgetting what helped gain its success to begin with, by underpaying their dividends or even withholding earnings. Remaining true and maintaining a high integrity business is important to a longer lasting business as well as a loyal consumer base and potential investors.

In order for a corporation to succeed there are risks that have to be taken, the return that is expected to come back after taking the risk and capital budgeting. Market risks are “Economy wide sources of risk that affects the overall stock market.” (Brealey, R., A., 2018) In the business realm of things risks are impacted on outlying factors.  The risk premium plays a drastic role between the risk and return. Return in the eye of the investor is analyzed based on the risk premium as it generally adds an additional percentage to their return. Capital budgeting is simply “a list of planned investment projects.”

When looking at things from a biblical and Christian perspective, risks are taken when things begin to go downward. When life is throwing storm after storm trust must be given to God to turn things around. Not only that but finances depletes and every penny counts, taking the risk to still tithe is something that Christians must do, knowing that God will continue to supply needs. Giving is not to be looked at as a way to gain something in return. Faith alone comes with the greatest return anyone can ask for. Malachi 3:10 say “Bring the full tithe into the storehouse, that there may be food in my house. And thereby put me to the test, says the Lord of hosts, if I will not open the windows of heaven for you and pour down for you a blessing until there is no more need.” Budgeting in the Christian realm is known as being a good steward over finances. Titus 1:7 reads “For an overseer, as God's steward, must be above reproach. He must not be arrogant or quick-tempered or a drunkard or violent or greedy for gain” 2 Corinthians 9:6-7 ties it all together “The point is this: whoever sows sparingly will also reap sparingly, and whoever sows bountifully will also reap bountifully. Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver.” Giving is the risk to receiving.

References

Brealey, R. A., Myers, S. C., & Marcus, A. J. (2018). Fundamentals of corporate finance with Connect (9th ed.). Boston, MA: McGraw-Hill.

S. C., & B. Y. (n.d.). Corporate governance in emerging markets: A survey. In Emerging Markets Review (Vol. 15, pp. 1-33). Science Direct.