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In the world of capitalism, companies strive to be profitable as they can while providing their products or services. However, this ideology does not always align with the Christian beliefs and principles that do not place profitability as their primary interest. Although some Christians agree with the fundamentals of capitalism, other Christian theologians propose different economic strategies that best represent Christian traditions, ideas, and practices.
Several factors that may affect the companys economic decision-making process are goals, constraints, incentives, and market competition. Basic economics principles have always considered maximizing the profit and minimizing the costs as the main objectives for any business. For example, if the company is interested in updating the new equipment, it can either buy or borrow it. The decision-making lies in choosing the less expensive and more suitable option for the business. Generally, Christian understanding of economic goals coincides with service to God, while the non-religious approach does not chase any spiritual aim.
However, companies cannot develop their business strategies without considering obstacles and regulations that prevent companies from causing harm. One example of business constraints is the price regulations. According to Froeb et al. (2018), governments can control the prices in two ways: price ceiling and price floors. The businesses cannot exercise trades above the estimated price ceiling and below the price floor. Therefore, companies have to adjust their operations to continue participating in the market. Another example of the constraints is the legal limitations, where the business is punished by law in case of insubordination, such as workers exploitation and environmental damage. Cheap labor minimizes costs and increases profit for those who hold senior positions in a company; however, this issue not only touches upon ethical concerns but also legal. Here lies the difference between Christian and non-Christian approaches to economics. Rieger (2020) explains that God is the Christian religion that represents the interests of the poor, making the economic strategy more society-oriented. The non-Christian approach is concerned with the materialistic aspect of the business and less about ethics.
Companies also make their decision based on the incentives, which reflect their goals. Froeb et al. (2018) give an example of Uber drivers that are motivated to go to distant destinations, clean their car, and to drive safely because it increases their revenue and customer ratings, which attracts new clients (p. 20). Therefore, businesses are ready to increase their expenses if they can make more profit in the long run. The Christian approach is similar because it also encourages the industry to sacrifice certain possessions to provide better care for consumers. However, religious motivation is considered to be more altruistic than non-religious.
Finally, market competition can significantly affect the process of economic decision-making. Companies that offer similar services and products to customers consider each other as competitors. Therefore, they need to evaluate each others market strategies and tactics. Taking into account this evaluation, businesses adjust their economic plans to dominate the market. Rieger (2020) notes that many theologians do not encourage market rivalry because it goes against the principles of Christianity of achieving peace. However, he also mentions other theologians that consider market competition as the motivation for people to strive for excellence and perfection. In other words, businesses would adjust their strategies to provide high-quality products while being transparent in their methods because they want to win the competition. In conclusion, the Christian approach to economics differs from the non-religious understanding of the market strategies because the latter moves away from the spiritual aspects to the materialistic.
References
Froeb, L. M., McCann, B. T., & Ward, M. R. (2018). Managerial economics (5th ed.). Cengage learning.
Rieger, J. (2020). Capitalism and Christian theology. Religion Compass, 14(5), e12350.
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