Stakeholder Theory: Ethics And Organizational Corporate Governance Theories
C) According to the stewardship theory, the boards of directors of the company are the stewards of the corporation’s assets. As in the agency model there is a principal and an agent. The principle is the steward and will maximize the profit of the company and will not seek self interests. Therefore with the model it is not necessary to control the principal ( board of director) since they are stewards and act to the best interest of the shareholder.
Review of conventional Corporate Governance …show more content…
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