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 arty. 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. Hereford benefiting multiple parties vs... One In particular. Some may say that practicing the stakeholder theory may cause conflict or confusion, because multiple parties are involved, however if proper compromise and balance are practiced all will benefit in the end.
In this fast paced world that we live in, it is certainly easy to get "caught up in the mix" and lose touch of what's most important. For the simple fact that the stakeholder theory considers everyone as a whole, I feel as though this theory best squares with the teachings of Scripture. God does not focus on one group In general. He does not encourage us to segment ourselves from the outside world. God encourages us to all work together and help one another, so that we all benefit as a whole. The same goes for Keystone. Keystone is a applicably traded company through its parent company.
Although the various "corporate ladders" from a employee all the way up to the CEO may seem like a far stretch from one another, It's not at all. They realize the value of Its people. They believe If they center their focus on those "Inside" and those "Inside" excel at their daily duties, then not only will they benefit, but those "outside" will benefit as ell. We can relate almost anything in life to the word of God, but there is a great deal of God's word in scripture that relates to the world of finance, as well as the operations at Keystone.
The first passage that came to mind was Deuteron 1:10, which states "The Lord your God has increased your numbers so that today you are as numerous as the stars In the sky". This passage Is so powerful In that It proves as God blesses us with this gift and see's the importance of having "many'. This same insight is also brought up in Genesis 17:20; "And as for Shame, I have heard o: I will surely bless him; I will make him fruitful and will greatly increase his numbers. He will be the father of twelve rulers, and I will make him into a great nation. Throughout this course we have learned about the power of money and properly managing it, while also learning the proper fundamental in creating a financially intelligent department. Keystone didn't start with Just one person, it started with a group of strong willed and determined individuals with one goal in mind: Success. In order to have ultimate success, we must first have preparation. Without proper planning there will never be financial success. What we must also realize is that this cannot be done alone.
One of the greatest examples of this in scripture is Noah and his building of the Ark. Noah didn't build the Ark alone, he built it with his sons. He didn't round up all of the animals alone; he used the help of his sons. Noah had created an efficient team to help him complete his goal, their goal. He knew what it was going to take and had formulated a team that he knew could perform the task at hand. The same goes for finance and that's why I feel the stakeholder theory in management is a more powerful tool than the shareholder heron, because it focuses from the inside out.
When it comes to the subject of money, we are always going to see a rise and fall. Welcome to the world of finance. Unfortunately, we all need some form of income in order to survive in today's world. The importance of money and how it satisfies our everyday means for survival certainly can sway how we feel or act from one day to the next. When one becomes down, it's certainly easy to become unmotivated and therefore lose track of what's important in life. For this very reason, God created multiples and through faith we an keep from losing touch. Fallen humans are not programmed to look to the infinite Creator in the quest for their desires to be satisfied. John 3:19 notes that "this is the Judgment: the light has come into the world, and people loved the darkness rather than the light because their deeds were evil. " Yet for Christians the infinite Creator has been restored to his place of superiority and priority. " The more we read God's good work the most we begin to see the similarities to finance and the stakeholder theory, for we all benefit as a whole when we have "strength in numbers. "