This presentation highlights Biblical statement of accountability and leadership, which was presented by Moses to the Israelites following the exodus from Egypt. Since Moses had a unique status as a leader, he was accountable to GOD and to his people. Paralleled to this, accountability is at the level of a CFO towards the firm (Barlev, 2006).
Corporations are owned by their stockholders who share in profits and losses generated through the firm's operations, and act as legal entities (Govedarica, 2016). Thus, shareholders are expectant of the success of a firm, and corporate leaders make it happen by maximizing shareholders' value.
"All scripture is given by inspiration of GOD, and is profitable for doctrine, for reproof, for correction, for instruction in righteousness" (2 Timothy 3: 16, NKJV Study Bible)
On some level, making bad decisions is unavoidable, and no one can always be right. Organizations need strong leadership and strong management for optimal effectiveness (Bârgau, 2015). Thus, corporate leaders in position of decision making and influence, should seek counsel from GOD in their daily decision making. When CFOs trust in GOD and seek his counsel, they tend to make fewer bad decisions which affects stakeholders.
"Have you heard the counsel of GOD? Do you limit wisdom to yourself? (Job 15:8, NKJV Study Bible).
CFOs make investment and financing decisions that are critical to the success or failure of the organization. Thus, good financial decisions can keep the business out of unnecessary debts, avoid bad investments, make shareholders happy and avoid destroying brand value.
Worrying changes decision making (Worthy, Byrne & Fields, 2014). Worrying make people engage in hasty decisions, and CFOs are no exception to these situations. Organizations may eventually run out of cash, sales may decline drastically, profits may be low, shareholders may be unhappy, and the list goes on.
Dire warnings about failing business may be burdensome to CFOs. This could lead them in making very quick decisions with little consideration to satisfy stockholders in the short-term. However, this short term satisfaction to stockholders can be disastrous in the future.
"Be careful for nothing; but in everything by prayer and supplication with thanksgiving let your requests be made known unto GOD" (Philippians 4:6, Life Application Study Bible).
Officers and directors owe a duty of loyalty to the corporation and its stockholders (Barlev, 2006). They are expected to put the welfare and best interests of the corporation above their own interest or other business interests.
Conflicts of interest, efforts to compete with the corporation, or making secret profits from business dealings are typical examples of disloyalty. CFOs have a fiduciary duty of loyalty to shareholders, by not taking advantage of corporate investment projects for their personal gain. Also, CFOs must act with honesty, good faith, and fairness when handling corporate obligations. As part of their duties of loyalty and good faith, CFOs should also exercise reasonable prudence in carrying out their duties, to achieve the best interest of the corporation and its shareholders.
"Diverse weighs, and diverse measures, both are alike abomination to the LORD" (Proverbs 20:10, Life Application, Study Bible).