Why is Faith Based Investing Important

We all have core personal values, which act as a guide for our actions. We do not all share identical sets of values, but for most Christians, there is a wide expanse 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 and beliefs that guide our actions. We act according to those values and beliefs. Why should it be any different regarding investment decisions?

How we make money is just as important as how much money we make. 

For a Christian, it is essential to understand that investing in a company makes you an owner of that 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. For the Christian investor, it is important to know that the company in which you own stock, not only is legal and ethical but is also biblically moral.

Having ownership in a biblically moral company can be such a blessing. Not only is there the potential of sharing in the profits of the company in proportion to your percentage of ownership, but you can also feel good knowing that the company in which you own shares is doing good for mankind.

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 regrettable misfortune of participating in these activities, through stock ownership in that company.

The question for us to ask ourselves is this: “Do I believe a Christian should be a business owner in industries that clearly are in opposition to Biblical teachings? 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 is a company that makes a 100% return each year for its stock owners. Most people would love to have their investment portfolio full of this type of stock. But when upon closer scrutiny we find that the company's profits come from sex tourism, exploiting children in Thailand, we may feel differently about participating in this company's profits.

Some stock owners may argue that they did not exploit or destroy the children's lives who were enslaved to prostitution and pornography. They just invested in a company. But remember that when you buy stock in a company you are showing financial support for the activities of that company. You are endorsing with your money the services of that company and are profiting directly from the abuse of these children. A stock owner may be a passive participant, but a participant just the same.

The good news is that many companies do not participate in such items or services. Yet we must still be careful. If we desire our lives as Christians to be honoring God, then our actions should not compromise that objective.

Every action we take is either an act of worship or an act of rebellion against the one true God.

It is because of this belief that we feel that we should invest our money in such a way that seeks to please and glorify God as an act of worship.