伊利诺Assignment代写 公司治理理论

Most of theories of corporate governance define managers have their own interests, but stewardship theory is a theory that executive manager inherently seek to do a good job, to be a good steward of assets of company and a part of the team, instead of having motivation problem or have different self-interests with stakeholders. Stewardship theory is for researchers to check that whether executives take responsible as stewards to stimulate the higher interest for the principal (Donaldson, and Davis, 1991).
 
This new theory was been raised in the 19^th century, and it mainly remains the theoretical foundation for corporate regulations, however, it is practical for company and can provides new ideas for corporate governance, for example, whether company should build a long term remuneration plan based on financial reward or spiritually; also on corporate governance structure, if company should have an independent board and add external chairman to monitor manager or combine chairman with chief executive officer in order to let manager feel trusted. Stewardship theory can also help company to judge if the manager prior company interest rather than self-interests like get promotion or gain more paid, like LG, the Korean company, is operate with a kind of stewardship, because they have collectivistic culture in the company and employees have sense of obligation for the company. People are loyalty to their fellows. So, by having sense of stewardship makes the whole team work towards a same goal.
However, there is weakness of the stewardship theory is because there is no bright line between the board and the management responsibilities, when things go wrong, it is very difficult to hold the CEO accountable for results, for example, Enron has been the largest dealer of natural gas and got the higher income of 1010 hundred millions in 2000 (Baker, and Hayes 2005). But it is explored to its fake financial statement and unreasonable corporate governance. The Enron ownership structure is unreasonable and the board of directors are not independent and conscientiousness.