Youtube Video Link - https://youtu.be/dx28fuD_D4w Stewardship Theory, developed by Donaldson and Davis focuses on understanding the existing relationships between ownership and management of the company. Under Stewardship theory managers are considered as Stewards which means someone who is responsible to protect and act in the best interest of shareholders. It is opposite to agency theory which mentions the conflict of interest between managers and shareholders. Managers are considered as committed to business, responsible, working towards accomplishment of mission and vision of organization. They are the one who brings out collectivism in organization and align everyone’s objective for the growth of business. Focuses on recognizing various groups in organization and empowers them with motivation and delegation of work. Balances all stakeholders and add significant value to organization reputation. There exist a strong relationship between managers and success of the company. Stewards tries to maximize shareholders wealth by constantly increasing profitability and efficiency of business. More control and restrictions over managers may lower their motivation and hence turn them out unproductive since they take most of the strategic decisions for growth of business in long run. Thank you for Watching Subscribe to DevTech Finance

1. DEVTECH FINANCE
BUSINESS ETHICS & CORPORATE GOVERNANCE
STEWARDSHIP
THEORY

2. STEWARDSHIP THEORY
• Stewardship Theory, developed by Donaldson and Davis focuses on
understanding the existing relationships between ownership and management of
the company.
• Under Stewardship theory managers are considered as Stewards which means
someone who is responsible to protect and act in the best interest of
shareholders.
• It is opposite to agency theory which mentions the conflict of interest between
managers and shareholders.
• Managers are considered as committed to business, responsible, working
towards accomplishment of mission and vision of organization.
• They are the one who brings out collectivism in organization and align
everyone’s objective for the growth of business.

3. STEWARDSHIP THEORY
• Focuses on recognizing various groups in organization and empowers them
with motivation and delegation of work.
• Balances all stakeholders and add significant value to organization
reputation.
• There exist a strong relationship between managers and success of the
company.
• Stewards tries to maximize shareholders wealth by constantly increasing
profitability and efficiency of business.
• More control and restrictions over managers may lower their motivation and
hence turn them out unproductive since they take most of the strategic
decisions for growth of business in long run.

4. THANK YOU FOR WATCHING
DEVTECH
FINANCE