The stewardship organization: essential characteristics and conditions of feasibility

Purpose The paper explores the nature and facilitating conditions of “stewardship organizations,” that is, organizations in which stewardship behavior rather than principal–agent behavior defines the operative principles of management. Design/methodology/approach The paper falls into two parts: the first part of the analysis develops a theory of the stewardship organization, and the second part develops a contingency framework concerning the feasibility of stewardship organizations. Findings Stewardship organizations are characterized by three interlocking traits: (1) the overall mission of the organization, (2) the organization's internal control systems and (3) the “motivational environment” of the stewardship organization. Since stewardship organizations cannot be identified on the basis of stated mission alone, it is necessary to determine whether the mission involves a higher calling that has been internalized by organizational members to the point of constituting a vital part of how the organization runs on a day-to-day basis. Practical implications One key role of leadership in such organizations is to manage mission drift and to reduce the ambiguity of the mission and organization goals. Social implications Litmus tests are proposed for identifying an authentic stewardship organization in contradistinction to those whose socially minded values are ancillary or a marketing ploy. Originality/value This is the first systematic attempt to characterize the stewardship organization. After providing three specific examples of such organizations, the contribution identifies key markers of bona fide stewardship organizations.