Exploring Shareholder Theory and Generosity in Business Ethics

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Feb 20, 2024

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EVERY GOOD ENDEAVOR REFLECTION: SHAREHOLDER THEORY 1 Every Good Endeavor Reflection: Shareholder Theory & Biblical Perspectives of Generosity Assignment Keller described the sentiment of generosity as “The way to serve God at work is to make as much money as you can, so that you can be as generous as you can.” (2012, p. 22) supporting the shareholder theory to generate as much profit and returns as possible for the shareholders, with secondary effects being the benefits of the employees. According to Sorenson and Milbrandt (2022), during analysis of their research, one business owner stated, “God has blessed us and in turn we should be a blessing to others (2 Cor. 9:6–15) … giving … our time, talents, treasure and influence.” (p. 710). This alludes, at least in part, there is a possibility that generosity extends beyond financial means, with time talents and influence also included. An interesting aspect of their research introduced the term family social capital (FSC), which is the relationship between business owners and their employees, primarily built off trust, goodwill, and cooperation (Sorenson & Milbrandt, 2022). Building relationships through shared experiences further strengthens the competitive advantage within the family business structure (2022). In the forward of Keller’s Every Good Endeavor, Katherine Leary Alsdorf shared her experience and stated, “But in the competitive, win -at-all-costs workplace where I had to manage and lead, I had no idea how to live out God’s plan.” (2012, p. 13) supporting the findings within Sorenson and Milbrandt’s research that, “family-owned firms have the potential competitive advantage of existing social relationships within the owning family labeled as “family social capital”” (2022, p. 702). Sorenson and Milbrandt list generosity primarily in terms of financial givings, however, in the Brown case, as shown within their Cross-Case Transgenerational Table – Family Faith, generosity is also listed “Go above and beyond what is “expected”” (2022, p. 719), again, supporting the possibility that generosity extends beyond the

EVERY GOOD ENDEAVOR REFLECTION: SHAREHOLDER THEORY 2 financial realm. Katherine Alsdorf, didn’t feel as she was living out God’s plan within her workplace, but when the company failed, and she had to lay off hundreds, she was surprised the following day when everyone came into the office to celebrate their hard work together (Keller, 2012). It’s very possible Katherine had in fact built, within her workplace, FSC. The Brown case’s “beyond what is expected” and the owner’s comment of “time, talents, treasures, and influence” support the possibility that Katherine Alsdorf’s generosity may have been measured outside financial terms by those around her; indeed living out God’s plan! In Sorenson and Milbrandt’s discussions with business owners, it was revealed “some business owners rely on their family faith to sustain and establish ethical norms.” (2022, p. 701). Additionally, family owners suggested they rely on their faith to create ethical values that are complimentary and promote FSC (2022). As a re-emphasis to the owner’s comment above “...our time, talents, treasure and influence.” (Sorenson & Milbrandt, 2022, p. 710), especially when it comes to influence, generosity, we have learned, transcends dollars and cents. Small family, faith-based, businesses, and the influence they have within their workplace, have been challenged in recent years on deploying their faith-based ethics and values within their business, as was the case of Masterpiece Cakeshop. The juxtaposition of the case, Masterpiece Cakeshop v Colorado Human Rights Commission, was “religious freedom vs anti-discrimination” (Murray, 2019, p. 257); a collision of faith and a secular worldview. Though this is one example, it highlights a concerning recent trend by many holding similar secular worldviews that faith-based ethics and values have no place within the business world. However, with the United States Supreme Courting ruling in favor of Masterpiece Cakeshop, businesses around the country should have some relief in continuing the practice of establishing their faith-based ethics and values, and influence, within their businesses.

EVERY GOOD ENDEAVOR REFLECTION: SHAREHOLDER THEORY 3 References Keller, T. (2012). Every good endeavor: Connecting your work to god's work (First ed.). Viking. Murray, M. (2019). Inverting animus: Masterpiece cakeshop and the new minorities. The Supreme Court Review , 2018 , 257–297. Sorenson, R. L., & Milbrandt, J. M. (2022). Family social capital in family business: A faith- based values theory. Journal of Business Ethics , 184 (3), 701–724.

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