Scribd
Upload
212 views11 pages

Stewardship Theory

The document discusses the theory of stewardship in corporate governance. The key points are: 1) Under stewardship theory, company executives protect shareholder interests and make decisions on their behalf with the sole objective of creating a successful organization to benefit shareholders. 2) Firms that embrace stewardship place CEO and chairman responsibilities under one executive and have boards comprised mostly of in-house members, allowing for intimate operational knowledge and commitment to success. 3) Stewardship theory aims to satisfy shareholders by having a single leader who communicates business needs to shareholders and shareholders' needs to the business, avoiding confusion over leadership.

Uploaded by

Dhaval Maurya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
212 views11 pages

Stewardship Theory

The document discusses the theory of stewardship in corporate governance. The key points are: 1) Under stewardship theory, company executives protect shareholder interests and make decisions on their behalf with the sole objective of creating a successful organization to benefit shareholders. 2) Firms that embrace stewardship place CEO and chairman responsibilities under one executive and have boards comprised mostly of in-house members, allowing for intimate operational knowledge and commitment to success. 3) Stewardship theory aims to satisfy shareholders by having a single leader who communicates business needs to shareholders and shareholders' needs to the business, avoiding confusion over leadership.

Uploaded by

Dhaval Maurya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 11

STEWARDSHIP

THEORY
Roll.no name
• 10 Yash patel
• 53 Dhaval maurya
• 06 Mitesh jadav
• 29 Kushal dave
• 09 Jayendra solanki
• 19 Sanjay vegdra
THE GOAL OF STEWARDSHIP THEORY

• A steward is defined as someone who protects and takes care of the needs of
others.
• Under the stewardship theory, company executives protect the interests of the
owners or shareholders and make decisions on their behalf.
• Their sole objective is to create and maintain a successful organization so the
shareholders prosper.
• Firms that embrace stewardship place the CEO and Chairman responsibilities
under one executive, with a board comprised mostly of in-house members.
• This allows for intimate knowledge of organizational operation and a deep
commitment to success
ONE VOICE OF THE ORGANISATION

• The stewardship theory of governance has a clear objective of shareholder


satisfaction.
• Having a single leader creates one channel to communicate business needs to the
shareholders and the shareholders’ needs to the business.
• This also avoids confusion as to who is in charge when a company needs to
weather a storm.
• Stewardship governance requires that a CEO be trustworthy and willing to put
personal gains aside for the good of the organization.
EXAMPLES

• Stewardship Module may include environmental concerns.


• Where a company believe it Should operate With a little impact possible on the earth.
• Other companies have a champion human or animal rights.Refraing from using a product
that are made on sweatshop or testing on Live subject
• These models tend to be subjective.with management determing the boundary between
responsible or irresponsible behavior
EFFECT ON BUSINESS

• Draw clients who have a same purpose.


• The customer Carefully weight this Against how the company truly operates.
• Discrepancies Between talk and Action alienate the client base.
EFFECT ON EMPLOYEES

• Can tell a companies stewardship stance.


• Employees who hold to a same vision tend to Stick around.
• Stewardship improve company morale.
• Part of something bigger.
EFFECT ON CLIENT

• Like to feel like there are part of something.


• Stay even if its price of good or services is higher.
• May rub some potential customers the wrong way.
THANK YOU.

You might also like