FAITH 1
Faith Integration
Rachel S. Brazell
Overton Graduate School of Business, Liberty University
BUSI 530-B01 LUO
Dr. Justin M Henegar
March 1, 2021
FAITH 2
Faith Integration
People should apply Biblical laws in every aspect of life and strive to serve the Lord in
everything they do. Business finance can be a challenging area for some people in terms of
upholding scripture law. Business financial is an industry that regularly challenges a person’s
morals and ethics. There is pressure on financial professionals to sacrifice ethics in exchange for
monetary gain. The nature of the financial industry requires the application of Biblical concepts
in order to remain ethical and focused of fulfilling the Lord’s purpose.
This course began with teaching the ethics of maximizing the market value of shares and
perceived valuation. As with many aspects of business finance, market value, stock prices, and
valuation are not solely controlled by the actions of the firm. There are many outside influences
that are beyond the firm’s control which influence a firm’s health, profitability, and life span.
Outside influences that affect a firm may include the overall health of the economy, competition
within the firm’s industry, the stability of the government, or government policies (Brealey et al.,
2020). Despite outside influences, the firm can ensure their future by applying Biblical
principles to their business practices. Honestly, fairness, serving others, and transparency are all
Biblical principles play a large role in a business’s success. These characterizes are more
valuable to stakeholders than empty promises and inflated numbers.
To achieve maximum market value while also fulfilling scripture law, firms should
provide customers with desired services and products, treat employees fairly, and be honest with
shareholders. Luke 6:38, “Give, and it will be given to you. Good measure, pressed down,
shaken together, running over, will be put into your lap. For with the measure you use it will be
measured back to you.” (King James Bible, 2017). Receiving blessings and being successful in
life starts when we first bless others and contribute to their success for the purpose of fulfilling
FAITH 3
the will of the Lord. Serving stakeholders will enable the firms to build a foundation of satisfied
and loyal stakeholders, which is essential for the long-term value and profitability of the firm
(Brealey et al., 2020). Having a foundation built on honesty and serving others will reduce the
pressure for managers to stray from scripture law and will make it easier to do what is right.
Corporation executives can enforce ethical practices through the business structure of the
firm. Executives can build a sturdy foundation for the firm by holding management accountable,
valuing and respecting front line workers, investing in maintenance and new development,
producing accurate financial statements, using free cash flow to repurchase stock and pay fair
dividends, and to implement ethical compensations packages for management (Lourenco et al.,
2012). Compensation packages should align the interests of managers with those of shareholders
and offer rewards for the long-term success and health of the overall company (Brealey et al.,
2020). By putting such compensation packages into effect, corporation executives are reducing
the temptation and motivation for managers to make unethical business decisions for their own
personal gain.
Stock prices and the associated perceived valuation of a firm are determined by both the
internal happenings of a firm and the outside influences of the world (Brealey et al., 2020). A
firm should not worry too much about outside influences or things that are out of their control,
but rather strive to continually do the right thing. It is ultimately the firm’s own actions that will
determine its success or failure. Hebrews 10:36, “For you have need of endurance, so that when
you have done the will of God you may receive what is promised.” (King James Bible, 2017).
Things that the firm has control over include the amount of dividends paid, the relationship the
firm has with stakeholders, the firm’s earnings and finances, and the firm’s business practices.
Information from the firm is used to compile stock trading reports which influence investors and
FAITH 4
are used to make predictions about the future of the firm’s profitability. Investment activity has a
massive impact on the firm’s overall value.
Perceived valuation is in many ways like faith. Perceived valuation cannot be seen or
proven with solid data, it is determined by each individual and how confident they are in the
firm. Hebrews 11:1, “Now faith is the assurance of things hoped for, the conviction of things not
seen.” (King James Bible, 2017). With faith, we believe in the future based on what the scripture
promises us, the works of God we have witnessed in the past, and our relationship with the Lord.
Perceived valuation is determined by an individual based on the history of the firm, the current
financial health of the firm, and the relationship they have with the firm. The history of the firm
can be reviewed through financial statements. Financial statements reveal the firm’s earning
history and any significant financial patterns (Brealey et al., 2020). Current financial health of
the firm is determined by comparing the firm to industry competitors and current stock
information. The relationship an individual has with a firm is determined by past experiences
with the firm, whether those experiences were good, and the trust and confidence the individual
has in a firm. The best way to for a firm to ensure favorable perceived valuation is to treat
stakeholders ethically and to consistently practice ethical business concepts. Romans 12:9, “Let
love be genuine. Abhor what is evil; hold fast to what is good.” (King James Bible, 2017).
Choices made in business finance are usually not clear cut or one size fits all. Financial
decisions require a comprehensive assessment of many factors that lead to a decision that is
unique and tailormade of the specific scenario. Further, financial decision can be high pressure
with a lot at stake. When a firm goes through such stressful processes that includes so many
factors, it can be easy to become focused solely of financial gain and disregard ethical practices.
For this reason, it is vital that Biblical practices and concepts remain the primary goal and focus
FAITH 5
on all procedures. Despite outside influences or other stressors, if a firm keeps the simple focus
of fulfilling scriptural law above all else, success is guaranteed. The Bible promises us again and
again that if we just do the Lord’s will, all of our heart’s desires will be fulfilled. Jeremiah 29:11,
“For I know the plans I have for you, declares the Lord, plans for welfare and not for evil, to give
you a future and a hope.” (King James Bible, 2017).
FAITH 6
References
Brealey, R., Myers, S., Marcus, A. (2020). Corporate Finance (10th ed.). Penn Plaza, NY:
McGraw-Hill Education.
King James Bible. (2017) King James Bible Online. https://www.kingjamesbibleonline.org/
Lourenço, I. C., Branco, M. C., Curto, J. D., & Eugénio, T. (2012). How does the market value
corporate sustainability performance? Journal of Business Ethics, 108(4), 417-428.
doi:10.1007/s10551-011-1102-8
Powered by TCPDF (www.tcpdf.org)
