Running head: SOCIAL OBLIGATIONS OF CHARITY 1

Social Obligations of Charity

Thomas S. Johnson

Liberty University
SOCIAL OBLIGATIONS OF CHARITY 2

Social Obligations of Charity

Business owners and economists have a conflict of goals and social expectations between

building successful businesses and charity. This social conflict becomes an issue when business

owners cannot successful balance wealth production with social responsibility. Recent trends

point towards a growing number of super wealthy individuals who create massive social charity

organizations. However, such organizations may well run counter to the function which

businesses play in society.

Gods Perspective

In the book of Isaiah, chapter 58 (New International Version), Isaiah speaks on Gods

behalf to rebuke the wealthy Israelites for fasting in solemn submission only to resume

mistreating their workers and failing to care for the poor. Is it not to share your food with the

hungry and to provide the poor wanderer with shelterwhen you see the naked, to clothe them,

and not turn away from your own flesh and blood (Isaiah 58:7, New International Version).

This rebuke echoes social expectations set forth throughout the Bible and challenges

business owners to diversify their attention. In Leviticus 23:22 (New International Version), land

owners were commanded by God to not harvest the corners of their fields, so that the poor and

foreigners would be able to collect food to live on. This represents a biblical social expectation

that the wealthy consider the needs of their poor, but not that they do to the point that their own
SOCIAL OBLIGATIONS OF CHARITY 3

business ventures fail. By indicting the wealthy for failing to care for those in need, God is

explicitly reproving the act of near complete callous disregard for the poor.

Societys Expectations

This social injunction is echoed in modern American society by the rising expectation

that the wealthy must give substantially to charity. The Economist ("To have, not to hold", 2006)

observed that the new super wealthy like Bill Gates are donating much of their wealth to private

industries. Mr. Gates as of 2006 donated up to $31 billion of his own money to his philanthropic

Bill and Melinda Gates Foundation. Undercutting this notion of altruistic charity is The

Economists observation that they criticized Mr. Gates during the late 90s ("To have, not to

hold", 2006).

By challenging the wealthy to give and compete with one another, charity becomes an

issue of public relations over social charity. Gartan Gregorian ("To have, not to hold", 2006,

para. 3) said, I like people to be public about their philanthropy; it makes it more competitive if

we can see who is doing what." This in turn leads business owners to focus their attention on

issues outside of the purview of running successful businesses.

Classical Economics

Classical economists like Adam Smith, David Ricardo, and John Stuart Mills were more

interested in establishing fair business practices rather than dividing economics into ignoble

wealth production and honorable altruism (Sowell, 2006). They did so by focusing on morally

fair wealth production, because they believed that wealth would benefit everyone (Genetski,

2011; Sowell, 2006). The classical economic practice of building wealth works to improving
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economies so that the standards of living for all people would increase, especially the poor

(Genetski, 2011).

The issue confronting the wealthy business owner and economist then is that giving away

all, or most of ones money is less productive. The practice of giving away personal wealth

interrupts and redistributes productive wealth to less productive interests. As Genetski (2011,

p.15) writes, "Rewarding wise decisions and productive behavior while penalizing poor decision

and unproductive behavior promotes efficiency". When productive members of society like

businessmen are expected to divest their wealth, they are implicitly being compelled to be less

productive.

Conclusion

The demand for equality and voluntary wealth distributions stands in contrast to the

classical economic model and goes beyond biblical precedence. The impact of this trend is one

worth study, and invites a whole host of unpleasant implications on our society's economic and

social prospects. Regardless, godly businessmen must examine their motivations and guard

themselves against abandoning their God given responsibilities to those in need.

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References

Genetski, R. (2011). Classical economic principles & the wealth of nations, book I: Classical

principles. Campbell, CA: FastPencil, Inc. ISBN: 9781607463894.

Sowell, T. (2007). On classical economics. New Haven, CT: Yale University Press. ISBN:

9780300126068.

To have, not to hold. (2006, February 25). The Economist, 378(8466), 6(US). Retrieved from

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