Managers are to serve the corporation immaterial they are agents or steward: importance of corporate governance in the organisation for commercial performance

Abstract

In this study, it addresses the agency theory, the steward theory and corporate governance for positive commercial performance. Although agency theory and steward theory are widely studied, the fiduciary duties of directors and managers are overlooked.  This study intends to fill the literature gap of fiduciary duties of a director or manger playing an important role in commercial performance. Agency theory is liabilities for the corporate owner whereas stewardship provides for a good corporate governance.  This is because directors and managers work for the interest of the corporation.  Corporate governance which ensures the good governance of a company ensures accountability, which is essential for commercial gain.  This study is qualitative with interviews with managers of the corporations.  Findings revealed that directors and manager work for the best interest of the corporation.  The agency cost that are needed to monitor the managers are not needed because managers are keen to ensure the growth of their corporations.  In decision making of directors, they must keep aside any ulterior motives and serve in the best interest of the corporation.