Economic capital is the material benefit derived from the stewardship of our LIFE (Labor, Influence, Financial resources, Expertise). It is the result of work that creates wealth that when accumulated results in capital. The major question surrounding economic capital is this: How should we as business people, allocate the economic capital created by our businesses?
• More specifically, how much should we retain to grow the business?
• Should we maximize the bottom line or maximize the benefit to our employees?
• How much should be allocated for dividends to the shareholders?
• What is an appropriate ROI?
• How much of our business profits should be invested in social and spiritual capital?
• How much should we invest in job creation?
• How much is enough?
The answers to these questions are not easy or straightforward, but they are questions we must address if we are to fulfill our role as stewards. As we do this, we must remember that the primary purpose of economic capital creation is to foster the enjoyment and fulfillment of work itself, not to focus solely on the outcome—profit. Our work is worship but we should not worship our work. “So I saw that there is nothing better for a person than to enjoy their work, because that is their lot. For who can bring them to see what will happen after them?” (Ecclesiastes 3:22).