Some family businesses put family before business in many decisions; others emphasize business before family on key matters. A great many, however, openly and proudly give priority to their religious beliefs and principles, above any and all business considerations. Whether Born-again Christians, Orthodox Jews, Muslims, or Mormons, many of these Òfaith-firstÓ families deeply believe that business cannot be kept in a separate compartment from religious faith but instead, must be inspired and guided by it. The undoubted success of many of these companies clearly suggests that religious faith is at the very least not a handicap in doing business, and that, indeed, can contribute in significant ways to the firmÕs achievements.
Yet there are those who would argue that some of these firms succeed in spite of their beliefs, that sticking too closely to religious principle can hamper a company in the competitive marketplace, lead to inflexibility in management, and perhaps deter talented employees and customers who do not share that faith. In faith-first family companies, there are other crucial considerations, too: What happens when the senior and junior generations do not share the same religious convictions? Do deeply held religious beliefs ease the succession process or pose added obstacles?
Family Business interviewed five experts to find out how religious beliefs may help or hinder family owned companies. They included four family business consultants whose clients include many faith-first families, along with the author of a recently published book called Believers in Business, which is based on interviews with more than 85 evangelical CEOs and top executives, about a third of whom were in family companies.
Thomas M. Hubler
President of Hubler Family Business Consultants in Minneapolis.
I believe religion gives people and companies an edge. WeÕre all given spiritual gifts and when we identify and align ourselves around those gifts, we become happy. Likewise, when businesses are in alignment, they have a higher probability of success.But I would differentiate between two types of faith-first companies: The first are born-again families, who are really outgoing about their faith and who express strong religious beliefs openly and directly. The second category consists of those who are quieter about their faith but still operate their business according to religious principles.
IÕve worked with both types. Their common denominator is a set of values that guide them in all they do. They have just as many challenges as other businesses and families. But they have a strong value system that motivates them to act out of generosity and love, as opposed to being resentful about changes and things that are not going right. One of the common problems in family businesses in general is this notion of change and how you deal with it. Faith-first families are much more willing to adapt with a generous spirit.
Some faith-first families are rigid and dogmatic. But that has nothing to do with their belief sysem. IÕve worked with many who arenÕt dogmatic, and IÕve seen the positive qualities in extroverted families and the quieter faith-first families.
When the second generation is not as religious as the first, however, that can become divisive, because the parents may not trust children who have strayed from the faith. In these situations there are often other philosophical differences over how to do business, and if the parents are dogmatic, this can become an obstacle.
One extroverted, faith-first business owner I know has a son who was not involved in the faith and was about to get a second divorce. The family had two enormously successful stores. The father was a hands-on leader and the son had a more professional management style. But it was their religious differences that made the father intolerant of their other differences. He ended up taking sole responsibility for one store, and his son took over the other. The stores survived a difficult transition and are doing well now, but the relationship continues to be a struggle.
In terms of the impact on the company and its profit, I see religion as a mixed bag. A real estate developer I know, a religious Catholic who goes to church daily, left his first job out of graduate school because of his employerÕs unscrupulous way of doing business with kickbacks. This man founded his own company based on religious principles. He has been conservative about taking on debt because he feels it is associated with Biblical admonitions against money lenders. As a result, although the company has been successful, it has not been able to take advantage of some opportunities that required a capital investment. Because the family had a lot of cash and wasnÕt mortgaged to the hilt, however, they were able to make it through a downturn in the real estate market.
Prayer and religion and spirituality have a place in business, although I am not critical of those who disagree. People who are not religious can certainly have well run companies. But strong religious values often give a family the energy and sense of commitment that increases their probability of success.
Craig E. Aronoff
Founder and director of the Kennesaw State Family Enterprise Center in Marietta, GA.
In our secular society, we have forgotten that religion and life are not separate when theyÕre working the way they are supposed to. When the Jews were in the shtetl and the Puritans landed in Massachusetts, religion was not kept separate from the rest of life.Most employees keep their work and personal lives separate. Religious family businesses experience a greater sense of wholeness. It can be very satisfying to merge the various strains of lifeÑincluding social, economic, and religious valuesÑin a family business.
Many companies attempt to base decisions on their value systems. Usually we donÕt feel uncomfortable about it until we slap a label on it. Once we say our values are based on our belief in God, we become uncomfortable. But is the influence of religious values on corporate life really that rare? I suspect itÕs not.
What could be more secular than a publicly traded company? Yet Pacific Bell Telephone was sued by fundamentalist employees who claimed it was trying to brainwash employees with New Age values by means of its controversial training program called Kroning.
Truett Cathy, owner of Chick-fil-A, a chain of fast food restaurants based in Atlanta, could increase his volume by one-sixth just by opening on Sundays. But he doesnÕt do it because of his Christian beliefs. He also chose not to open restaurants in California because he couldnÕt find employees who were Òtheir kind of people.Ó The company doesnÕt discriminate on the basis of religion. But he is clear about the values he wants in managers; the company tends to hire squeaky clean folks, the kind with Boy Scout values. They donÕt have to swear belief in Christ to get hired, but IÕd bet that Chick-fil-A hires a high percentage of believers. Is that discriminatory? I think they have a clear idea of the kind of people who are likely to be successful in their business.
Whenever someone claims thereÕs a religious basis in what they do, of course, there are risks. It could be very destructive, an arrow in the quiver of a leader with a dysfunctional ego. IÕm talking about people who focus on control, who donÕt take input from others, who like to be in a strong authority position. They will use money or their status as ownerÑanything in their arsenalÑto reinforce their control, even to the point of saying, ÒIÕm going to do this because God wants me to.Ó
The Puritans took evidence of financial success as a good indicator that they were to be blessed in the world to come. The certainty that God is smiling on you, and that you can get God to smile on you, is not sophisticated. I donÕt see much of that, though. I see some company owners who quote from the Bible, who stop to pray before meals or meetings. But much more frequently in religious family businesses I see modesty, the downplaying of wealth, the resistance to ostentation, the notion of stewardship. I also see a tendency to stress service and charitable contributions, sometimes in the form of tithing.
It is also not unusul for clergymen to be involved in business decisions of religious companies. When I go to a family business as a consultant and ask the leaders who the significant people in the company are, most mention a few key nonfamily managers, their accountant or lawyer. But some owners refer me to clergy, because members of the clergy have been close advisors to the family. Among Hassidic Jews, for example, itÕs quite common for family members to go to the rabbi for guidance on Òthe right thing to doÓ in a given business situation.
I met a Buddist family who believed in ancestor worship and fealty to elders. The 49-year-old general manager told me: ÒMy father brought me into this world and provided my education. The least I can do is what he says.Ó While he felt he owed his father respect, however, this successor had also established his independence. He had founded a radio station, a video rental store, and about six other businesses that have some strategic connection to the original electronics retail business, in order to be able to manage them his way. Values promoted by the familyÕs religion may thus have the effect of preventing the business from continuing into the next generation. IÕve seen that happen with mainstream Protestant systems as well, where the younger generation is not comfortable accepting their parentsÕ absolute word in business.
In the majority of third-, fourth-, and fifth-generation businesses I work with, however, there is a strong religious theme running through the family. My guess is that anything that reinforces the familyÕs common ground will make it more likely that theyÕll stay together in the business. One Christian family in the chicken-processing business referred to the business as a ministry to its employees, who were mostly low-wage Filippino, Mexican, and Vietnamese immigrants. The family was trying hard to help their employees have a better life. They offered literacy programs, English-as-a-second-language classes. They were not proselytising or running religious education classes. But they felt this was work that God had put them on earth to do.
Whenever you see a family that has survived through generations, they usually feel part of something with greater meaning [beyond profit]. They may talk about their role in the community or what they have done for employees. The owners of a newspaper may emphasize the importance of defending freedom of the press; a scrap recycler may stress the social value of cleaning up the environment. Sometimes God is attached to the mission. You donÕt have to invoke religion or God to achieve a sense of meaning in the business. But religion is a potentially helpful force. In religious families, individuals have a sense that they are not the be-all and end-all of existence, that there is something greater than themselves. As a result, they are not as prone to promote their own egos and agendas.
People who take their religion seriouslyÑbut not necessarily dogmaticallyÑhave an easier time talking about values and are more likely to talk to each other about issues that are crucial to maintaining harmony in the business.
Kenneth Kaye
A Chicago psychologist specializing in conflict resolution for family businesses, and author of Family Rules (St. MartinÕs, 1990) and Workplace Wars (Amacom, 1994).
As a psychologist, I try to learn what an individualÕs or a familyÕs faith does for their development, mental health, and success in life. From that point of view, it has not been my experience that religionÑeither the particular faith or the strength of convictionÑhas a predictable effect on the quality of family business functioning.Recently, I heard family business advisor Léon Danco say that a family lacking a strong shared faith in God cannot hope to succeed in passing its business to the next generation. That is nonsense. There are many families who frankly admit they donÕt believe in God, yet they transmit strong moral values and humanist commitments to their children and often succeed better in both business and family matters than theistic families. There are also many who give lip service to faith but violate it with their deedsÑsometimes with dire consequences for their family and sometimes with no discernible consequences at all. So God is neither a guarantee of success in this world, nor a necessity for it.
A waste management company I worked with was beset by competitors using kickbacks and bribes to obtain contracts. Such practices are out of the question for this family, because of their strong moral principles. So they have had to compete on service and cost. They have succeeded, though not wildly. Religion hasnÕt given them an edge. If anything, it has created a challenge. It has motivated the family members to define the way they do business and strengthened their identification with one another. That could be a definite advantage in team building.
On the other hand, consider the reason they hired me. Their shared faith emphasized loving each other and suppressing anger. They avoided expressing disagreement; they felt guilty about desire for power in the family, and they were uncomfortable talking about wealth.
Another deeply religious client wasnÕt sure whether it was morally okay to seek wealth. He had a substantial net worth on paper but was having trouble paying for his kidsÕ higher education because he didnÕt feel entitled to liquidate stockÑthough it was publicly traded. To sell shares he had inherited, he felt, would be seen as materialistic and constitute irresponsible stewardship of an enterprise his parents had created to honor God. Feeling strapped for funds and frustrated, he periodically attacked his brother, the CEO, at board meetings and in letters to other family members.
I have worked with more than one firm whose faith is what I call Òword-drivenÓ not spirit-driven. In these companies, directors and key managersÑfamily and nonfamily alikeÑrefer to Scripture verses in their memos just by the number, such as ÒII Kings 23.Ó The clear implication often is: ÒGet out your Bible, sister-in-law, youÕre not being Christian enough today.Ó They seem to do this wrathfully, judgmentally, self-righteously. Envy is apparent in some of these families, and I wouldnÕt be surprised if gluttony and lust were, too. All the deadly sins.
Whether or not the advantages of faith-first businesses outweigh the disadvantages depends on many other characteristics, including the parentsÕ personalities, the level of education in the family, the childrenÕs talents and personalities, and so forth.
The advantages include a shared basis of morality and values and a frequent discussion of those values. As a result, they can say ÒWe know what we think and whatÕs important to each of us.Ó The work ethic is thus reinforced by Scripture or the Talmud; JesusÕs parable of the talents, which teaches the value of building a return on investment rather than letting capital lie idle, comes to mind. The familyÕs faith becomes part of its history, its identity, its reason for continuing to function as a team versus the outside world. In addition, for some families, the church, the parish, the synagogue, the Mormon stake are communities that function, in part, as business networks.
Disadvantages that IÕve seen in faith-first families include a fear of individuation; intolerance for dissent or different attitudes and lifestyles; self-censorship (often it doesnÕt even occur to the members to express negative emotions or disagreement); sexism (evangelical Christians, Mormons, and Orthodox Jews are similar in their traditional subordination of women); confusion between the parentÕs will and GodÕs will; self-righteousness; and, for at least some Christians, ambivalence about whether it is all right to seek wealth.
Phillip Sidwell
A consulting psychologist in Atlanta who has specialized in working with family businesses since 1964.
The disagreements and disappointments that go on inside most families can be evident in faith-first businesses as well. But I have found that faith-first families are generally more functional than secular families. Very few of the dysfunctional families I work with have strong religious underpinnings; the pathos of these dysfunctional families is that they have very little to fall back on.When you have a family that is well rounded and not coercive in its faith, when it practices its religious tenets daily in the business, when it allows the foibles of being human to exist, and when it addresses those foibles with love and regard, then you end up with a healthy family business. IÕd estimate that about half of my client base fits this category.
Many businesses have high-minded corporate credos and mission statements. My experience has been that faith-first family businesses live out these credos and practice their beliefs in a way that is natural for conducting business. And where there is high degree of consistency between the way families run their personal lives and how they run the company, the members are less conflicted psychologically. That is not to say that they are without problems, disagreements, and controversies. They can have all those things. But the fact that these families tend to look for guidance from God helps them get over many hurdles.
It is not unnatural when a real argument occurs in these firms for the family members to just stop and say, ÒLetÕs go to God with this.Ó This helps them ÒcenterÓ and focus on what their religious tenets tell them about how theyÕre supposed to deal with this heated conflict. What they do, basically, is just call time out and step back. Instead of getting a cup of coffee or walking around the block, they go to their religious underpinnings. It can calm down the emotionality of the situation and help give them a broader view of it.
In my experience, faith-first family businesses take seriously the concept of stewardshipÑpreserving the family company for future generations and for their employees. They feel a real accountability to plan, as best they are able, to hand off the company in good shape to the next generation. They are therefore less resistant than other family businesses to estate and succession planning. They have a long viewÑof eternity. So even though effective tax and estate planning makes them as uncomfortable as it does other business owners, they grit their teeth and do it, and they do it earlier, which leaves them more options and more time to prepare their children and themselves.
Although I am based in AtlantaÑthe ÒBible BeltÓÑmy clients are spread around the country. I work with companies of all denominations. Whether they be Christian or Jewish, my faith-first clients tend to be fairly egalitarian. They usually want to provide a platform for both males and females to utilize theirÑguess what?ÑGod-given talents. They donÕt hold to the view that family values require women to stay at home.
Of course, one possible disadvantage of putting religion in business is that employees might feel the need to follow the ownersÕ religious tenets, even if they donÕt feel as strongly about religion. But I have never seen any significant divisiveness driven by faith issues. Most of those who operate with their religious values in the forefront are smart enough not to try to shove them down other peoplesÕ throats.
Owners have every right to make their beliefs fundamental to the way they run their personal and business lives. They should be happy, moreover, to share their tenets with employees and anyone else. But owners should not expect employees to adopt their own particular beliefs. Some people, of course, may feel uncomfortable working with a faith-first business. The owners can make employees of different faiths comfortable by, for example, recognizing their religious holidays. The best thing business owners can do to reach people who have not developed a strong faith is to set an example, to demonstrate in their own lives that they are living by their beliefs.
Laura L. Nash
Adjunct associate professor at Boston UniversityÕs School of Theology and School of Management, and author of Believers in Business.
Despite the fact that evangelicals represent many denominations, they share some fundamental similarities of worldview. They see a holistic significance potentially in every detail of life, and tend to stress relational, personalized, biblically oriented problem-solving with a long-term perspective.In researching my book, I found that these patterns strongly influence their business thinking, and lead to a complex balancing of faith and business needs. I call these moments of conflict between business musts and religious oughts Òcreative tensions.Ó When they occurr, executives have to restrain themselves from acting in certain generally accepted ways that are in conflict with Christianity; yet their evangelical orientation helps them overcome many market problems with great financial success. This process is very difficult to pin down, but can be seen in many of the examples in the book.
There were seven types of tensions between Christian and business values: love of God versus pursuit of profit; love versus the competitive drive; people needs versus profit obligations; humility versus the egoÕs need for success; family versus work; charity versus wealth; and faithful witnessÑhow much testimony to Christ should be offered through the business. The faith and managerial effectiveness of these executives are strengthened rather than diminished by confronting these tensions.
The executives have three basic responses to the moral conflicts sometimes encountered in business. The first two types, whom I call ÒgeneralistsÓ and Òjustifiers,Ó are characterized by their denial that conflicting impulses exist. They either ignore or rationalize potential discrepancies between Òbusiness as usualÓ and Christian ethics. The third type, whom I call Òseekers,Ó are the most prevalent in my sample. They have a more complicated response.
Rather than seeing business and Christianity as automatically compatible, the seekers acknowledge there are sometimes conflicts between the two. They are struggling to know GodÕs way and to keep their faith distinctive and alive within a culture that does not readily accept the trappings, language, and rituals of that faith.
When asked to describe their business values, the respondents do not tend to focus on global issues, such as bribery in doing business abroad or the need for economic development in other countries. Instead, they describe their business values in terms of relational or domestic problemsÑa negotiation with a customer, a small incident involving a secretary, a marital problem triggered by the business, a situation with an unethical employee. This is not to say that they are indifferent to larger social issues such as unemployment, but they tend to focus on their own behavior rather than the behavior of others.
The group that I interviewed represent substantial business success. Yet some of the very characteristics they exhibit in their discussions of their management styleÑtough, personable, patient, dignified, conservativeÑwere rated lowest in terms of leadership needs in the next century by senior executives in a 1992 study by Korn Ferry International and the Columbia Business School. My study may thus challenge us to reconsider some of todayÕs assumptions about the nature of successful business leadership. Indeed, many recent business articles seem to be giving new emphasis to ÒspiritualityÓ in managing companies.
One interesting finding: Many of the CEOs I interviewed find that the clergy is intolerant or disdainful of their role as businesspeople. Many express great frustration that their cleric wasnÕt sensitive to the problems they faced but simply tell them, ÒYouÕre wealthy; your obligation is to give it away.Ó The clergy, they say, does not fully appreciate the challenges faced by CEOs in bringing Christian love to, say, a nasty competitive environment or to dealing with an underperforming worker. The clergy only sees macro employee issues, such as whether the company is laying off people or hiring cheap labor overseas.
The interviewees were split on the issue of whether women should work outside the home. The responses were somewhat generational, with younger executives being more accepting of women having careers. Very few, however, felt that they were encouraging sinful behavior by employing working mothers. Some CEOs whose daughters worked in business loved it, at least until the daughter had a first child. Then they felt the mother should be home with the child. However, one man retired early to help his wife take care of his grandchildren.
The executives whose spouses did not work were not necessarily stereotypical male chauvinists. Many relied on their spouse as chief advisor and emotional Òhalfway house.Ó That guidance was particularly necessary to those who ran their own businesses and felt that the ego of success could cause them to make bad judgments and become distanced from their God. Their wives kept them humble and gave them honest feedback.
In family businesses, I see a certain freedom to define success on the family membersÕ own terms. Clearly, profit is important, but not the end-all. They are able to add to the business what is personally meaningful to them, especially from a religious standpoint, without constant pressure from outside shareholders, or short-term markets, or a corporate parent. They emphasize certain values that were consistent with an ethic of love and stewardship, from the joy of cultivating employeesÕ personal growth to refusing to carry certain products that they found offensive. One defines success as Ògrowing as a Christian in the business.Ó Many cite service or value to customers as a key goal.
The downside is that many found the early stages of the business so consuming that they had no time left for their faith. Several had had conversion experiences after their businesses became more successful and they gained more status. As they stopped scrambling quite so hard, they started asking themselves questions about what was most significant in their lives and the meaning of their work. This happened slightly more in family businesses that were start-ups. They would come up for the first breath of air and ask what it was all about.
Jayne A. Pearl, a business writer and editor in Amherst, MA, is a frequent contributor to Family Business.
Spirit at Work by Jay Conger & Associates (Jossey-Bass, San Francisco, 1995). Eight essays with such titles as ÒPartnering with GodÓ and ÒIgnation Spirituality and Leadership in Groups.Ó
The Soul of a Business: Managing for Profit and the Common Good by Tom Chappell (Bantam Books, New York, 1993). The author, who co-founded TomÕs of Maine with his wife, Katie, brought a spiritual dimension to the business after attending Harvard Divinity School.
Management: A Biblical Approach by Myron Rush, (Victor Books, SP Publications 1983). A consultant describes the managerial skills needed in maintaining a successful business with a Christian perspective.
Being GodÕs Partner: How to Find the Hidden Link Between Sprituality and Your Work by Rabbi Salkin (Jewish Lights Publishing, Woodstock, VT, 1994). Ways in which to bring your faith, vision, and love into the work you do, written in a self-help style.