Question

Greed, generosity and planning – The passages from Luke address greed, generosity and planning. How do the Biblical principles in Luke affect business financial planning and maximization of shareholder wealth? Discuss whether the concept of Biblical principles are compatible with the business concept of maximizing shareholder wealth.

Requirements: 250 words

Answer 1

The passages from Luke addresses greed, generosity and planning and the primary premise of the passages are that greed is not good and has the power to destroy human beings. Luke’s passage says that abundance of possessions is not important in life. One of Luke’s passages says that (Luke 6:38) it is good to give and share. One should share one’s possessions and wealth with others especially the poor. With regards to planning Luke 14:28 says that if you want to build a tower then first determine the cost that will be incurred and go ahead only if you have enough money and resources to build the tower.

The biblical principles in Luke significantly and tangibly affect financial planning and maximization of shareholder’s wealth. The principle lays out that businesses and organizations should expand only after doing comprehensive planning. They should first estimate if they have enough money and resources (in terms of different resources like manpower, capital etc.) to undertake a project and only after a comprehensive analysis they should undertake the project. If this is not done then it fill face serious difficulties in future and will not be able to complete the project. Maximization of shareholder’s wealth should be an objective but it cannot be pursued in isolation; equal emphasis needs to be given on social responsibilities as well.

The concept of Biblical principles are compatible with the business concept of maximizing shareholder wealth provided the goal of wealth maximization is pursued with a keen eye on social responsibilities, responsibility towards planet and other stakeholders.