Theories Of The Governance

Stewardship and governance

Contents
Introduction......................................................................................................................................2
Theories of the governance..............................................................................................................2
Stewardship theory..........................................................................................................................3
Relationship of a leader’s values and beliefs to effective governance............................................6
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................9

Introduction
Stewardship and governance are important in any organization as it helps in protecting
and caring the needs of the employees in the company. The interest of the shareholders is
protected and the government follows the rules and regulations which helps in operating the
functions of the company in an effective way. The assets of the company are taking care with the
help of the stewardship. Governance is the policies and the practices which help in ensuring the
data related work. Governance helps in accountability and managing the data which helps in
ensuring consistency and accuracy in the company. In this report the theories of the governance
will be explained which will contribute to the effectiveness of the organization. The stewardship
theory will be explained which helps in evaluating the governance in the profit and the non-profit
organization. The discussion will also be done for the effectiveness of the governance in which
the relationship of the belief and the leader value will be explained.
Theories of the governance
There are three basic theories that help the organization in performing the operations of
the company in an effective way. The theories of corporate governance basically focus on the
stakeholder of the corporation. This theory helps in taking effective decisions in the company
and helps in managing the functions of the company in an effective way. With the help of the
corporate governance theory the relationship builds between the different stakeholders and helps
in complying with the rules and regulations.
The evolutionary theory: This theory is related to governance which helps in evaluating the
nature of the governance. This theory of governance is different from other theories as the
elements of the governance are recognized which is constantly changing. This theory offers
perspectives that are evolving the market and societies. This theory is used in politics, law,
public administration and reforms. This theory is important for the interrelationship and also
evolves in many products of the governance itself (Farrar, 2005). This theory of governance
helps in getting the business successful. With the help of this theory the company can comply
with the legal and ethical things and achieve the objectives of the company. This theory also
helps in controlling the risk and sets the rules which help in directing the functions of the