BUS509: Analysis of Corporate Governance and Stewardship Theories

This report provides a comprehensive analysis of corporate governance and stewardship theories, exploring their contributions to effective organizational leadership in both for-profit and non-profit sectors. The paper begins with an introduction to the evolving landscape of corporate governance and the significance of structured governance systems in achieving sustainable competitiveness. It then delves into key governance theories, including agency theory, stakeholder theory, resource dependency theory, and ethical theory, examining their strengths, weaknesses, and practical applications. The report further discusses stewardship theory, highlighting its role in fostering organizational effectiveness by emphasizing trust, shared vision, and ethical behavior. The discussion extends to the relationship between a leader’s values and beliefs and effective governance practices, underscoring the impact of leadership on shaping organizational vision and mission. The analysis is supported by scholarly articles and research, providing a well-rounded perspective on the subject. The paper concludes by summarizing the key findings and their implications for fostering effective governance and leadership within organizations.