Faith Integration Essay

Faith Integration

Agents of God

Liberty University

Abstract

This paper looks at how the Bible is related and integrated into corporate finance. It takes a comprehensive look into the how Christians as agents of God have an impact in the financial industry through world view and Christian lifestyle. Additionally, it examines how these elements and dimensions are incorporated into corporate finance on an everyday basis. This paper also analyzes how these major elements and dimensions impact the financial industry.  Overall, after reading this paper, one should have a better understanding of how Christians as agents of God impact the financial industry through biblical ethics, avoiding greed, and reducing debt: all key elements that directly contribute to success in the financial industry.

Agents of God

In a letter to the Corinthians, the apostle Paul discusses the ministry of reconciliation, and he uses the term “ambassadors” for Christ: 2 Cor. 5:18 states, “All this is from God, who reconciled us to Himself through Christ and gave us the ministry of reconciliation (NIV).”  Generally speaking, an ambassador is a respected official acting as a representative of a nation. Sent to a foreign land, the ambassador’s role is to reflect the official position of the sovereign body that gave him authority. Writing to the Corinthians, Paul likens his own calling to that of an ambassador, and he urges all Christians to consider themselves ambassadors for Christ.  As we go through this world, “we represent another Kingdom” as Jesus quoted in John 18:36 (NLT), and it is our responsibility to reflect the “official position” of heaven in all that we do.  John 17:16 describes that “We are in this world, but not of it” (NIV).  Matthew 10:6 explains that as God’s ambassadors are to be “as shrewd as snakes and as innocent as doves” (NIV).  Meaning we are to be wise and innocent as we represent Him.  

Agents of God

When looking at these scriptures one could come to the conclusion that we act on the behalf and are agents of God.  Just as we are God’s agents acting on his behalf we also act on the behalf of others.  Often in corporate finance, people act on behalf of others as agents, stewards, and ambassadors.  Executives act as agents for the shareholders of a corporation. Mutual fund managers act on behalf of investors to decide which stocks or bonds in which to invest.  Lawyers apply their expertise to serve their clients’ interests in financial transactions. An entire branch of finance literature is devoted to better understanding the many agency relationships in finance.  Finance can exist because God created people with an ability to act on behalf of others.  Therefore, it is important that Christians as the light of the world be a good ambassador or agents of God in Corporate Finance, specifically but not limited to the areas of biblical ethics, managing debt, and avoiding greed.  

Ethics

The general definition of ethics is, “moral principles that govern a person's or group's behavior.”  In laymen terms this definition means doing what is right. As agents of God, we believe that the ultimate standard of right is God and His perfect righteousness. According to Brealey et al. (2015), “Whether leadership, accounting statements, or cash flows, principles of ethics have great relevance in the business world” (pg.19).  Therefore, Christians should be honest and show integrity when conducting business.  Leviticus 19:11 states, “we should not steal, deal falsely or lie to one another.”  Additionally, Proverbs 22:11 states, “that a good name is rather to be chosen than great riches.” Brealey et al. (2015) simply states that “transparency of a company is when outsiders can assess its value and performance, principles which relate to ethics” (pg. 70).

Ethics call for a just weight as found in Deuteronomy 25:13-15 (NKJV). The principle of a just weight is to give a full amount in exchange for a fair payment of what is advertised.  From an ethical standpoint it is critical that our prices and payment are fair and reasonable; that in which a prudent person would pay based on the market conditions.  Why?  Because ethics demand total honesty, integrity, and transparency in all business transactions and decisions.  Although we will frequently fail, our intent must be total honesty with our employer, our co-worker, our employees, and our customers.  Ephesians 4:25 calls upon Christians “to stop telling lies and speak the truth” (NLT).  Ethics demand being a servant that is, serving others.  The value and success of a business lies in how well it serves the needs of its customers (Brealey, Myers & Marcus, 2015).  Finally, the Agent of God must seek reasonable profit which is the price of the product above cost.

Ethics play a very important role in business as it keeps businesses and employees honest, promotes accuracy, and protects those who could otherwise be hurt by someone else’s schemes. As agents of God, we must promote transparency to help those tempted to act unethically so that fraudulent acts in the financial industry are reduced.

Managing Debt

Another area in which we are to be agents of God is managing debt.  Debt and all issues associated with it, have been a part of human life and the marketplace, for many years.  Research shows that, “the 48th provision of the Code of Hammurabi, was written more than 3,500 years ago, in Mesopotamia” (Mian & Sufi, 2014, p. 1).  This provision was written to remove debt owed, if there was an act of God that prevented repayment.  Contrastingly enough, Romans 13:7 states “pay to all what is owed, taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed” (ESV).  However, in this world, there is pressure to fall into materialism (Brealey, Myers & Marcus, 2015).  Therefore, it is important, teach and understand that “financial leverage is usually measured by the ratio of total long-term debt to long-term capital” (Brealey, Myers, & Marcus, 2015, p. 96).  Organizations nationally, may have adequate leverage for longevity and others, may not.  In fact, research shows that “the long-term debt ratio for the average U.S. manufacturing company is about 30%” (Brealey et al., 2015, p. 96).  Before enduring these large debt ratios, Luke 14:28 asks for all to “sit down and count the cost, whether he has enough to complete it” (ESV).  In relativity, of the fundamentals of finance to Biblical comparison, pursuit of stewardship with God’s resources, using wise decision making and God given gifts, will make debt incumbency, a positive encounter.  As agents of God we have a responsibility to manage debt from a biblical perspective to the point where we become the lenders and not the borrowers.