Keay, A (2017) Stewardship Theory : Is Board Accountability Necessary? International Journal of Law and Management, 59 (6). pp. 1292-1314. ISSN 1754-243X
Abstract
Purpose The purpose of the paper is to demonstrate that notwithstanding the fact that stewardship theory embraces things like trust of directors, their professionalism, loyalty and willingness to be concerned for the interests of others, as well as rejecting the foundations of classic agency problems that are asserted by agency theory, board accountability is as relevant to stewardship theory as it is to agency theory. Design/methodology/approach The paper applies the theory underlying board accountability in corporate governance, which is so often applied both in the corporate governance literature and in practice with agency theory in mind, to stewardship theory. Findings While the idea of accountability of boards is generally associated with an explanation and conceptualisation of the role and behaviour of directors as agents within classic agency theory, the paper demonstrates that board accountability is a necessary part of board life even if the role of directors is explained and conceptualised in terms of stewardship theory. Practical implications The paper suggests some accountability mechanisms that might be employed in a stewardship approach. Originality/value While many authors have talked in general terms about board accountability and its importance, this is the first paper that has engaged in a substantial study that links board accountability directly with stewardship theory, and to establish that accountability is necessary.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © Emerald Publishing Limited 2017. This is an author produced version of a paper published in International Journal of Law and Management. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | board accountability, stewardship theory, agency theory, boards, directors |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Education, Social Sciences and Law (Leeds) > School of Law (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 19 Dec 2016 14:39 |
Last Modified: | 16 Jan 2018 04:27 |
Status: | Published |
Publisher: | Emerald |
Identification Number: | 10.1108/IJLMA-11-2016-0118 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:109675 |