Spirituality, stewardship, and financial decision‐making: Toward a theory of intertemporal stewardship

Abstract

Purpose

The purpose of this paper is to develop a theory of intertemporal stewardship that incorporates stewardship, based on a foundation of spirituality, into financial decision‐making models.

Design/methodology/approach

Argues that stewardship, which shares some common ground with sustainable development, must become an integral component of financial decision‐making. Using agency theory as a point of departure, discusses the Anglo‐American and Continental European‐Japanese models of financial decision‐making, and how they can be reformulated to embrace stewardship and the spiritual foundation upon which stewardship is based. The key to linking spirituality and stewardship is our concept of self‐fullness – the simultaneous pursuit of reasonable self‐interest and reasonable concern for the common good of all human beings. The reformulated model of financial decision‐making is labeled intertemporal stewardship theory.

Findings

The merger of spirituality, stewardship, and financial decision‐making is crucial for the survival and prosperity of businesses and the people they serve. The failure of businesses in the new economy can be traced to the loss of values regarding spirituality and stewardship.

Research limitations/implications

Empirical research must be conducted to test the validity of the proposed intertemporal stewardship theory.

Practical implications

It is essential that managers base their decisions on internalized spiritual and stewardship values that they do not “park at the door” when they arrive at work. Managers should never lose sight of these values, and their decisions should always be grounded in these values. Without such grounding, it is very possible that once again managers will be caught in a cycle of “irrational exuberance”. Therefore, it is critical that these values become not only an integral part of financial decision‐making but also an integral part of education for financial decision‐making.

Originality/value

The financial bottom line is that financial decision‐making can no longer be devoid of spiritual and stewardship considerations if an organization is to survive and prosper over the long term. Neither can business organizations deny spirituality and stewardship considerations if they are to be socially responsible members of society, contributing to and upholding a moral existence for all humanity. In this sense then, the conception of intertemporal stewardship theory that is offered in this paper takes a step toward realizing these greater goals.

Citation

McCuddy, M.K. and Pirie, W.L. (2007), "Spirituality, stewardship, and financial decision‐making: Toward a theory of intertemporal stewardship", Managerial Finance, Vol. 33 No. 12, pp. 957-969. https://doi.org/10.1108/03074350710831738