Biblical Perspective of Financial Intelligence

Topics: Corporate finance, Stakeholder theory, Stakeholder Pages: 3 (1071 words) Published: October 13, 2013
In any organization it is extremely important to acknowledge and take care of those who you believe are your greatest asset to the company. These can be not only internal, but also others outside the company as well. This is one of the many positive directions that Keystone has focused on. Finance Theory and Stakeholder Theory in management certainly have their differences when it comes to where you should focus your interest, yet they both are extremely beneficial depending on the circumstances or conditions. Figuring out which theory will be most effective for the overall business can at times be a bit overwhelming. A simple solution is often overlooked, as some of the hardest decisions can be so simple when we turn to the word of God. The ultimate principle of finance theory suggests that a certain amount of money today has different buying power than a certain amount of money in the future. Essentially the finance theory is centered around and very similar to the “time value of money”. The goal of finance theory within an organization is to ensure that they maximize shareholder value. In short, those external parties who invest in the organization by purchasing shares of stock take preference before any outside party. While finance theory centers the focus around one party in particular, the shareholder, stakeholder theory focuses on everyone as a whole. The official definition for stakeholder theory “is a theory of organizational management and business ethics that addresses morals and values in managing an organization”. Stakeholder theory suggests that the management should consider the interest of all stakeholders in the organization and take care of them first and foremost. Instead of increasing value for one party in particular, the shareholder, they are essentially focusing on everyone as a whole, therefore benefiting multiple parties vs. one in particular. Some may say that practicing the stakeholder theory may cause conflict or confusion,...
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