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A steward is someone who manages or takes care of another person's property, person, or other assets when those assets are put in trust to that individual. In most conceptions of stewardship, the steward is supposed to place personal interests below those of other people or below the interests of the collective as a whole. In management theory, the concept of stewardship requires managers to subordinate their own personal interests to those of the organization as a whole.

There are several major theories of stewardship in the management literature. One version of stewardship is that managers are stewards or caretakers for the invested resources of companies' owners or shareholders. In this view, which can be found in economic theories of the firm, managers have a fiduciary or fiscal responsibility to ensure that the investments of shareholders into the company through the purchasing of shares in the firm are wisely used. In this view of stewardship, managers are seen as agents of the owners or shareholders and are responsible for the overall well-being of the firm and all its resources. Members of the board of directors are theoretically elected by shareholders to serve as stewards for the interests of shareholders in major decisions made by companies; thus, directors are also stewards and agents of owners.

Another theory advanced by Peter Block focuses on leaders as stewards, a type of leadership he termed servant leadership. The other major conception is stewardship theory, which has been developed by James Davis, David Schoorman, and Lex Donaldson and focuses on subordinates in organizations as being trustworthy and willing to help the organization through their work efforts rather than resistant to organizational initiatives. It too emphasizes the good of the organization as a whole, rather than individual interests, and is positioned to counteract some of the assumptions of agency theory, which assumes that managers in organizations will only act to maximize shareholder returns if appropriate safeguards are in place and will seek instead to maximize their personal gains.

Stewardship and Servant Leadership

Servant leadership, according to Peter Block, writing about the relationship between stewardship and leadership in an organizational context, means that a person is held accountable for the good of the whole organization by operating as a servant leader—that is, in service to others in the organization. This perspective on leadership can be contrasted to leadership based on authority and attempts to control others, where the emphasis tends to be on personal gains and self-interest. The key to stewardship in Block's view is the idea of service or servant leadership. Service needs to be authentic or real to be effective. Block argues that service is authentic when there is a balance of power that allows individuals who are not in formal positions of authority to be responsible for their own actions; when the first commitment is to the larger entity, organization, or community rather than the self; when the purpose of the enterprise is jointly defined; and when rewards are equitably and fairly distributed.

The idea behind stewardship is one of reallocating power and resources and the generation of meaning and purpose in an organization more equitably among all the participants in an organization rather than simply locating it in persons holding positions of authority. This view of leadership suggests that empowerment and individual responsibility are critical factors in creating successful organizations. From the perspective of stewardship, when organizations face crises, particularly economic crises, they should focus not on a wealth maximizing or economic goal but on quality, participation, and service. Rather than calling the way the organization is run management, as is typical, Peter Block says it is best to call it governance. This form of governance is focused on partnership and empowerment rather than more patriarchal or authoritative forms of managing. Partnership in this model has four key elements: exchange of purpose or the capacity for each individual to define vision and values for the enterprise, the right to say no or express one's point of view even when one does not get one's way, joint accountability in that each person is responsible for what is happening in the organization and its results, and absolute honesty.

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