The quadratic Stark effect on hfs levels of the Li7 ground state is investigated. The spin-optimized self-consistent-field (SOSCF) method is used. Parting with previous calculations, where the electric field was treated as a perturbation, the SOSCF equations with the electric field included in the hamiltonian are solved. The calculated shift for the (F=2, M=0) to or from (F=1, M=0) transition is -0.0627 Hz KV-2 cm-2, in agreement with the experimental -0.061+or-0.002. Most of the effect results from the decrease in the net electron spin density at the Li nucleus; contributions of other terms in the hfs operator are negligible. The polarizability of the Li ground state is also calculated and found to be in good agreement with previous results. Predictions are made for the shift in the (F=2, M=-2) to or from (F=2, M=-1) transition, which has been measured for several alkali-metal atoms but not for lithium.