Exploring stewardship theory: Managers as stewards for exemplary corporate governance

AbstractA typical individual often invests one part of their income in any investment plan; we cannot expect such a person to be very sound about every aspect of such an investment plan. That's why people used to invest in this speculative form of business with the help of experts, resulting in theory-like stewardship coming into the picture. Under the stewardship theory, managers are considered stewards, which means they are responsible for protecting and acting in the best interest of shareholders. This stewardship theory focuses on the healthy working relationship between managers and Shareholders; this article argues that the stewardship behaviour of managers results in exemplary corporate governance practices when the espoused values of the firm are aligned with the enacted values.