Mendoza Katrina

STEWARDHIP THEORY
Introduction
According to Stewardship theory, it emphasizes the importance of a healthy corporate culture
based on honesty, integrity, and trust. It suggests that monitoring should not be a priority, and healthy
working relationships between managers and shareholders can minimize costs and increase decision-
making speed. Stewardship theory also believes that managers and employees are trustworthy individuals,
and as long as they are compensated according to their needs, there is minimal risk of abuse or harm to
shareholders' interests. Therefore, stewardship theory advocates for management empowerment and the
active role of shareholders in their companies. When an organization achieves success, the stewards are
satisfied and motivated. It emphasizes the need for employees or executives to behave independently in
order to maximize shareholder returns. Employees take ownership of their jobs and work extensively to
accomplish objectives.

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Conclusion

Stewardship theory
Discuss how your chosen corporate governance theory stewardship theory can be used to improve
corporate governance.

Differentiate corporate governance and corporate performance.