VEA Vice Chair Nell Minow interviewed Alpha Investor’s Charles Mizrahi for Medium about his article on the Biblical basis for capitalism. An excerpt:
Over time the “invisible hand of the market” encourages compassion and generosity. Consumers patronize companies that are more socially responsible. Companies that are not, will see a loss of market share. End result: the market place is driven by consumers.
Currently investors are applying non financial factors, (Environmental, Social, and Governance) before allocating capital. Companies that do not confirm will see a decrease of investment, thus encouraging them to be more ESG-oriented….
in ancient times God established that prosperity was a blessing, but there was an expectation that prosperity required generosity, allowing a whole community to thrive as individuals thrived.
Communicating that mindset would serve corporations well today — allowing your employees to have more say and understanding in the benevolence side of the corporation, and really just having better overall communication with them, letting them understand that their bonus or raise was a result of the company’s growth and success. Let them witness the trickle down effect of prosperity.
God established that prosperity was a sign of blessing, but it carried a responsibility with it. It was not meant to be hoarded or to be used only for self-gratification and advancement. There was an expectation from God concerning wealth, and a divinely ordained responsibility to manage wealth wisely and be generous with the results.