Every individual has a core set of personal values, which act as a guide for their actions. People do not share identical sets of values, but for most Christians there is a wide expansion of common ground. Christian values are based on our faith in Jesus Christ and God's written word, the Bible. When making decisions in life, it is our values set, our beliefs that guide our actions. We act according to that set of values and beliefs. Why should it be any different regarding investments decisions, the most common of which is the buying and selling of stock?
The term "stock" is short for "stock certificate". It refers to the document used as evidence or proof of ownership in a corporation. Stock certificates state the name of the company, the number of shares the certificate represents, name of the person, date of issue, the cusip number, and other information required by the law in force.
For a Christian, it is essential to understand that owning stock means you are an owner in a company. The more stock you own, the larger your ownership of that corporation. As an owner you participate in the profits made from the activities of the company. You also have certain rights such as are represented by the type and amount of stock you own. Voting rights or the influence regarding leadership and control of certain activities of a company is one common right. Because you are an owner/participator in the profits you also are a participator in the activities of the company. When you buy stock you are effectively partnering with all the other stock owners in that company. Though you may not be held directly responsible for the actions of the company as a minority stock holder, you are a participant just the same. Let's say for ease of math you own 10% of company XYZ's stock. If that company creates a cure for some terrible disease you have the pleasure of knowing the company you have become a partial owner in created that cure. If you were sole owner, owning 100% of companies stock, you would be credited personally for making such a great breakthrough and would reap the rewards of the possible profits from the patents, rights, and sales of this great product. As 10% owner you participate proportionately in such breakthrough.
The same unfortunately is true on the other side of the formula. If the company you own creates, distributes, markets, and or promotes products that are clearly offensive to Biblical values then you have the unfortunate privilege of participating in these activities, through stock ownership in that company. Examples of such products, services or activities that most Christians would agree on as sinful, immoral or offensive to God include:
· Pornography
· Prostitution
· Abortion
· Addictive products
· Anti Christian, anti God, entertainment and publication
· Gambling
The question is do you believe a Christian should be a business owner in such industries?
When we own stock in a company that develops, distributes or promotes such products or services we are passively participating in Biblically offensive activities.
To illustrate this point more clearly let's pretend there was company that made a 100% return a year for its stock owners. Most people would love to have investment portfolio full of that type of stock. But when we look closer and find the profits come from their child pornography and prostitution activities in the Philippines we may feel differently about participating in such profits.
Some stock owners may argue that they did not exploit and destroy the children's lives enslaved to prostitution and pornography. They just invested in a company. By buying the stock you have shown financial support for the activities, you have endorsed with your money the services and have profited directly from the abuse of these children. A stock owner may be a passive participant but a participant just the same.
So why is the knowledge of Faith Based Investing important to a Christian? If you believe the Bible to be the word of God then we can look there to see what it has to say:
Ephesians 5:11 "Have nothing to do with the fruitless deeds of darkness, but rather expose them."
2 Cor 6:14 (NKJV) "Do not be unequally yoked together with unbelievers. For what fellowship has righteousness with lawlessness? And what communion has light with darkness?"
Psa 1:1 (NKJV) "Blessed is the man who walks not in the counsel of the ungodly, nor stands in the path of sinners, Nor sits in the seat of the scornful;"
1 Pet 1:13 - 16 (NKJV) Therefore gird up the loins of your mind, be sober, and rest your hope fully upon the grace that is to be brought to you at the revelation of Jesus Christ; as obedient children, not conforming yourselves to the former lusts, as in your ignorance; but as He who called you is holy, you also be holy in all your conduct, because it is written, "Be holy, for I am holy."
And, if your so desire, to glorify God in the manner He has clearly commanded and instructed us:
"So whether you eat or drink or whatever you do, do it all for the glory of God." 1 Corinthians 10:31 (NIV)
The good news is that many companies do not participate in such items or services. Yet we must still be careful.
A company can do many things with the profits it generates from its business activities. They could be used to expand the business, develop new products or they could be distributed to the stock holders in the form of dividends. A corporation, just like an individual, can also make charitable gifts of its cash flows giving financial support to organizations the controlling stockholders believe are worthy. If you own stock in a company that gives money to organizations that promote or provide products, services or influences to sinful activities, you have, as a partial owner in that company participated in the funding of those products, services or influential activities.
The bottom line is, as a Christian, I am to care for my neighbor, put others before myself, turn away from sin including sexual immorality, drunkenness, greed, laziness, gluttony, murder, stealing....
1 Cor 15:33 - 34 (NKJV) Do not be deceived: "Evil company corrupts good habits." Awake to righteousness, and do not sin;
By owning stocks that produce, provide, or promote Biblically offensive activities I am participating in these sins.
· If these activities cause others to sin I as a stock owner of that company are responsible for causing such stumbling.
· If the companies value increases because my stock purchase and that of others bid the stock up then we have contributed to the growth of a company that is offending God.
· If such companies gives financial donations to organizations involved in Biblically offensive activities I have participated in funding the enemies of God.
Why is faith based investing important? If we desire our lives as Christians to be honoring to God then our actions cannot compromise that objective. I personally have come to point in my life where I realize every action is either an act of worship or an act of rebellion against the one true God. This includes my actions regarding money, possessions, and investments.
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Mark Minnella is a Registered Representative of and Securities are offered through WFG Investments, Inc,