Reflection on Shareholder Theory & Biblical Perspectives of Generosity

If anyone read all the sections in the Bible that deal with the money, one would find that the majority of them are regarding generosity, which means giving to the work of the god and helping the people in need. The sentiments of Keller introduced in the Every Good Endeavor is regarding being generous while making money to serve god. I think we should learn not to see work as a necessary evil for making a living, rather we need to see work as a glorious way of making contribution to our God, neighbors, and our world. Serving money as well as being generous are some kind of mutual exclusive.

I think there are many people who do not understand the significance of generosity, as they hold on strongly to what they own. They are unaware that selfishness often results in the financial difficulties. If one is earning good at the workplace, then he or she should be generous to help the people in need. While working in a job, there include various audiences one might desire approval from, such as boss, colleagues, and others. However, according to Keller, labor should be done for the audience of God. If it is done, work has its meaning, profit gets a purpose, and lives get changed. One could glorify god at work by bringing a wholistic faith at the workplace. Work is good, as pleasure and leisure are the great things provided by the god.

The article by Smith has highlighted the whether the companies should pursue only to maximize the value of shareholders or strive to serve the stakeholders’ conflicting interest. The shareholders’ theory state that the capital is provided by the shareholders to the managers of company, who are believed to spend the funds of corporate only in the manner that have been authorized by the company’s shareholders. This theory is more geared towards the short-term profit, rather than thinking about the long-term perspective of the organization, which can be maximized when company fulfills the interest of all its stakeholders. However, contrary to which, the stakeholders’ theory states that the managers of company have a duty towards the company’s shareholders, individuals and the constituencies that help in contributing, either willingly or unwillingly to the wealth creating activities and the capacity that are hence its potential risk bearers and/or the beneficiaries.

I think companies should not only aim to maximize the return for the shareholders rather should think about the interest and welfare of all its stakeholders. The maximization of shareholder’s value shows the selfishness of the company’s management. It does not reflect generosity. However, generosity is reflected when the management of company thinks about the interest of all its stakeholders. Everyone should be equally served rather than providing benefit to only the group of shareholders. I therefore, agrees with the perspective of Kellar regarding being generous, as well as agree on the concerns raised by the Smith on the debate of shareholders vs. stakeholders.

Bibliography

An, S. (2018). The Integration of Evangelism and Social Concern in the Ministry of Timothy Keller.

Keller, T. (2013). The Insider and the Outcast: The Encounters with Jesus Series: 2. Hachette UK.

Lombard, S., & Joubert, T. (2014). The legislative response to the shareholders v stakeholders debate: A comparative overview. Journal of Corporate Law Studies, 14(1), 211-240.

Smith, H. J. (2003). The shareholders vs. stakeholders debate. MIT Sloan Management Review, 44(4), 85-90.