Where Values and Profits Collide
Many corporate leaders are faced with decisions in which values and profit collide. This is why it is valuable for you, the investor, to set your priorities. Let your principles and values guide you in accomplishing this task. To start, think long and hard about your answer to this important question:
Would I abandon my principles in favor of choosing a path of profit?
Biblical values are many times pitted against bottom line demands. Larry Julian wrote about this in God Is My CEO. Larry is a successful consultant and speaker who specializes in biblically based leadership development and strategic planning. His mission is to help businesspeople integrate their work and faith, transform their adversities into their destinies, and revolutionize their lives into their legacies. There is a great moment in God Is My CEO where he shares,
“We usually want to do the right thing but often succumb to the short-term, bottom-line demands of daily business life. While we are encouraged to follow God on Sunday, we are not supposed to make the right ethical decisions in the trenches on Monday through Friday. This paradigm has demanded that we operate in two separate worlds: a deeply personal, private, spiritual world and a very public, demanding, competitive business world. For the most part, these two worlds clash in their values, beliefs, and principles and we are caught in the middle.”
Dishonesty Has a Way of Catching Up With You
Taking part in an activity that is unethical, immoral, or dishonest to make a financial gain is wrong no matter how you try to justify it. Throughout history great men have fallen because they neglected to maintain moral integrity. From those who participated in the slave trade to those involved in Nazi concentration camps to the Wall Street meltdown of 2008, in which we watched companies that had been around for more than one hundred years collapse. One common theme recurs: greed, deceit, and a “culture of corporate corruption.”
Integrity is critical not only in our personal lives, but in daily business activities. If you are like many, when you hear words like integrity and character, you may think about morals and ethics, but do you think of profit potential? If a corporation and its leaders lack integrity or offer products and services that harm people physically, mentally, financially, or spiritually, who pays the price?
The character of God is based on love, faithfulness, and trust among many other traits. But when we allow our character flaws to interfere with our relationship with God, we ultimately pay the price. Look at anyone who has fallen in Hollywood; look at the number of sports stars whose careers have come crashing down. Look at church leaders who have been plagued by scandal. Look at top business and governmental figures who have gone to jail over fraudulent activities. All these stories typically begin with a breakdown in character.
We Need to Rebuild America!
When we allow huge moral and ethical lapses to occur, over time they eventually cause some major losses of not only individual careers, but entire companies and even confidence in the markets themselves. But the biggest price of all is the separation from God. Though God never leaves His own, many choose to run from Him. God is the cornerstone of our laws, liberty, and government in America. Now more than ever we need to strengthen America. Are you doing your part? Are you investing in corporations that support your values and promote faith, hope, and love? Are you screening out companies that are destroying our culture? One investor at a time, we can unite to rebuild America and make attractive profits in the process.
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{ 6 comments… read them below or add one }
There is no such thing as a “faith based” investment company. Companies are designed to make a profit for their shareholders without meeting a subjective moral criteria. Commissioned salesman have found another niche to take advantage of the Christians by using the cross to trust them.
Mick,
A question for you: Do you think God cares more about the amount of profit or the source of profit? Faith-Based Investing is about finding investment opportunities that do not blatenly violate God’s priniples. Whether you agree or not, there is a moral responsibility when you invest.
How is helping someone incorporate their faith into their financial plan taking advantage of Christians? That doesn’t make sense logically.
Jay Peroni, CFP
We were having this discussion earlier this week. I noticed an article in a Christian publication that was talking about how churches were boycotting GoDaddy.com because of the racy ads they ran during the Super Bowl. I am certainly not a fan of those ads but it will be pretty tough in today’s environment to find companies whose values and ethics are in complete agreement with biblical principles. Investing in mutual funds makes it even more of a challenge. I suspect the investment opportunities would be pretty slim. If I boycotted every company whose views were different to mine, I probably wouldn’t survive. That doesn’t mean I have lowered my values or ethics…. I try to do the best with what God has entrusted to me.
I will say though that in my younger days, I purchased 100 shares of Philip Morris because I was playing with covered calls (in my stock gambling days). I owned the shares for less then 24 hours when the guilt got to me and I quickly sold them.
Bob V. I agree no company is perfect nor will they mirror your values, but there are 3 types of companies:
1) those companies blatenly supporting things that God is opposed to: abortion, pornography, embryonic stem cell research, homosexuality
2) Those companies remaining neutral in the culture battle. They make products and provide services that add value to society.
3) Companies that pro-actively follow Christian/Judeo values, have Christians in upper management, and look to preserve the American value sof faith, hope, and love.
There are thousands of companies that fall into categories 2 & 3 if you as a Christian investor proactively determine you want to honor God with your investing and screen out companies that clearly violate His principles.
It is a personal choice – between you and God. Where is He leading you in the process?
Millions of like-minded Christians have started a movement (biblically responsible investing, faith-based investing, values based investing, moral responsible investing). Call it what you like, it is a movement not a fad. Just like liberal minded individuals started social responsible investing over 50 years ago, conservative Christian investors have been implementing faith-based screening now for well over a decade. I illustrate much of this in The Faith-Based Millionaire, which is still available for free download for a few more weeks at http://www.jayperoni.com.
Hope that helps….
Question, where do you draw the line with companies and how you rate them from a moral perspective? As a consumer, should I stop drinking Coca-Cola, eating at McDonald’s, using a specific RX prescription recommended by my doctor from a company that doesn’t match my morals? Again, your heart may be in the right place, but in reality it doesn’t work in a global economy.
Mick,
Now you’re asking the right question: where do you draw the line. I believe each individual can draw a line. Product purchases may be extremely difficult. For example microsoft produces thousands of computer products so should we avoid buying computers? No…that’s no the answer. Product boycotts work only when you can isolate and know every product a company offers. Stock boycotts are much easier if you take effort. You determine your hot buttons (ie abortion, pornography, embryonic stem cell research, etc,etc). Then you use mutual funds that creen for your issues or use stock research that evaluates the morality of each publicly traded company. http://www.moralmoney.com, http://www.iwfinancial.com, and http://www.briinstitute,com are three leading researchers that uncover what each company is involved in. Less than 10% of all publically traded companies fail the screens leaving thousands of companies still to choose from. It’s more of a question of what God puts on your heart. Do you think God would want you profiting from companies that willfully oppose His Word. if you could choose otherwise (yes it may cost you something – time, money, success), but isn’t this life really about glorifying Him and being the best steward with the resources he provides to us.
Think about this: pornography is profitable. Is it morally corecet to run a porn shop and then tithe on the profits to the church? How is it different when you invest in companies that clearly operate in opposition to God’s principles? As a shareholder you are an owner of the company (even if it is in small percentages). Personally I seek to be as pure as I can in this area. There are millions of investors applying screens to their portfolios. is it all in vain? I personally believe God is honored by the faith-based investing movement.
Jay Peroni, CFP