If your upbringing was anything like mine you probably had a parent, grandparent, or teacher tell you at some point “treat others the way you want to be treated.” This admonishment was usually doled out after I had taken a sibling’s toy, said something mean, or some other selfish behavior. We sometimes call this “The Golden Rule,” a rule I hope kids still hear today. Treating others in a way we want to be treated (with kindness, respect, honesty, etc.) is important and commanded in Scripture.
At Beacon Wealth Consultants we seek to invest in companies that live out the Golden Rule in their business practices. This is one of the things we look for in a “Shining Light Company”. We believe that what is good for personal relationships is good for businesses too. You may be wondering why we do this and what does this look like?
Why follow the Golden Rule?
The “why” is easy enough to explain: God commands it! In the Sermon on the Mount Jesus says,
“So in everything, do to others what you would have them do to you, for this sums up the Law and the Prophets.” Matthew 7:12
“Do to others as you would have them do to you.” Luke 6:31
When Jesus mentions the Law and the Prophets He is referring to the Old Testament, specifically the five first books of the Bible and the prophetic books which have several commands to love your neighbor such as Leviticus 19:18 which says,
Do not seek revenge or bear a grudge against anyone among your people, but love your neighbor as yourself. I am the Lord.
Paul also makes the same exhortation in Galatians 5:14,
For the entire law is fulfilled in keeping this one command: “Love your neighbor as yourself.”
If we understand that each person in precious to God, specially created in His image, we will value them and treat them with care and respect.
Interestingly, most non-Christians also view the Golden Rule as an important ethical standard. (Could it be that God has planted his moral standard in all our hearts?)
Most people will understand why the Golden Rule is important for personal relationships, but why does Beacon Wealth look for companies that are living it out?
We believe that what God commanded as His best for people and what helps people and relationships to flourish will also help businesses to grow. In short, we think that businesses that treat their employees, suppliers, contractors, and communities with dignity, care, respect, and kindness are going to do well.
What does a company that practices the Golden Rule look like?
As mentioned above, we intentionally look for companies that live out the Golden Rule in their business practices for our portfolios. There are many ways a company might live out the Golden Rule in their business practices. Here are a few examples:
- Providing above-average wages and benefits to their employees and offering opportunities for personal or professional development.
- Offering programs like financial wellness or chaplaincy to help employees and their families navigate difficult life challenges.
- Hiring employees who might have difficulty finding employment such as the formerly incarcerated.
- Helping veterans transition out of the military into good civilian jobs.
- Paying suppliers and contractors on time for services rendered.
- Being up-front with suppliers or customers when mistakes are made.
- Using some of their profits to help local non-profits or ministries.
- Encouraging employees to volunteer in local charities.
- Seeking ways to help with natural disasters.
There are many more ways a company could live out the Golden Rule. Basically, these are companies that see their business as a conduit for blessing their employees, stakeholders, and communities.
We think this is also good for business. London Business School professor Alex Edmans analyzed 27 years of data from the annual survey for Fortune’s 100 Best Companies to Work For. Edman’s book Grow the Pie shares his results. His research found that found that the public companies from the annual list of the Best Companies to Work For outperformed their peers by 2.3– 3.8% annually from 1984– 2011.[1]
In addition to the data, this is common sense as well. There can be less employee turnover when employees feel cared for and prioritized. Suppliers, contractors, and other businesses will want to work with a company that is honest. Customers will want to do business with a company that they recognize is active in the community. All these things can help a business grow and thrive.
In short, not only is the Golden Rule the right thing to do, we believe that it will help these businesses grow. This can make them attractive from a redemptive and from an investing point of view.
If investing in Shining Light Companies sounds compelling to you, give us a call! We help Christian investors just like you align their investments with their values.
Call us today! (540) 345-3891
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Reference
[1] https://www.amazon.com/Grow-Pie-Companies-Deliver-Purpose/dp/1009054678