Q Assignment is based on the identification of the different theories of corporate governance,values and the beliefs Home, - STEWARDSHIP AND GOVERNANCE Introduction Corporate governance is described as the system that allows the companies to maintain direction and control in the organisation. It has been analysed that the different activities, which are important to be maintained in the company for the production process to be maintained there, is the need for the presence of the corporate governance for the setting of the values of the many by the board of directors. The presence of corporate governance in a company will be analysing the different policies and the practices that are to be followed the employees in the company for maintaining the control in the overall approaches of carrying out the different tasks in order to achieve the goals of the company following the objectives effectively. This paper is based on the identification of the different theories of corporate governance that helps in the increase in the effective of the organisations focusing on the stewardship theory and identifies the relationship between the values and the beliefs that are present in the leader of such organisations. Key theories of governance contributing to the organisational effectiveness Corporate governance is highly effective in managing the overall approach for organisational effectiveness. Various theories of corporate governance is present in an organisation in order to ensure that there is effectiveness in the performance of the organisation. Some of the theories of corporate governance and their importance in terms of increasing the organisational effectiveness are given below. Agency theory of corporate governance Agency theory can be described as the theory of corporate governance that allows the effective examination of the relationship between the magnets in an organisation and the principals that are present in the organisation. It is important to note that the agency theory is based on two parties, which are the agent and the principal. As per the given theory, the agent is the one who take account on the actions of decision-making and ensure that the decisions are being taken on behalf of the principal that are being set up abiding the company policies and practices. The theory of agency revolves around the relationship that is present in between the agents and the principles and the issues that are present among them. These risks are based on the different perspectives and the goals of the business of the two parties in relation (Shi, Connelly & Hoskisson, 2017). As of the corporate governance, the presence of the theories will be allowing the organizations to gain effectiveness in different forms considering the agents and the principals. It has been note that in terms of the corporate governance, the agency theory is entirely focused on the relationship between the shareholders and the directors or the management of the company. It has been analysed that the focus of the theory is to represent the views of the different owners and take the respective actions and the operations on behalf of the individuals whose views were being represented. Various features are present in the given theory that allows the effective understanding of the different types of effectiveness that is to be gained by the company. In any agency theory there will be three sets of interest groups, which will be present in the organisation. The three sets of the interest groups, which are present in the theory, are the managers, the stockholders and creditors. The pointing of the conflicts among the different interest group is carried out by the given theory. It is important to note that the effectiveness of the agency theory is based on the following two situations, which are being solved by the given theory (Stout & Blair, 2017). Different risks appetite The interest and the willingness of the agencies in order to reduce the conflicts that are present among them and the other different agencies present in an organization will be effective in maintaining such resolution for conflicts. It is important to note that the different activities that are important to be carried out in an organisation is based on their interest and the willingness of the managers, the shareholders in terms of the making the decisions, which are to be taken into, account in the company for the conflict resolution. Super-self centred executives There will be effective assessment of the managers in terms of taking the decision in terms of showing the short-term performance to the different owners who are present in the company, in order to provide the employees hikes and increments. It is important to note the achievement of the goals of the company can be achieved by the use of the given theory by alignment of the objectives of the company with the principals and the requirements of the employees (Tricker & Tricker, 2015). Stakeholder theory of corporate governance The stakeholder theory of corporate governance is based on the different effects of the corporate activities that are to be taken into account by the stakeholder of the company. It is important to note that the corporate managers in the company will be able to gain their interests of the different individual stakeholders in the process of governance that is to be maintained in the company. It is important to note that according to this theory the corporate members will be able to take the interest of the different stakeholders and the shareholders in the company so that there will be reduction in the conflicts of the individuals who are present in the company as the stakeholder and the shareholder of the company. As the stakeholders are divided into two parts, which are the internal stakeholders and the external stakeholders, their interest and their value in the company will be defined accordingly. It is important to note that the different individuals who are the directors of the company and the employees of the company will be involving themselves in the corporate governance process that is present in the company (Jensen, 2017). It is important to note that the creditors, the auditors, the customers, the suppliers, the government agencies and the community in the company is operating its business are the external stakeholders. The presence of this theory will be allowing their interests to be kept in mind while engaging the corporation of the stakeholders in the company. This shows that the presence of the given theory will allow the company to understand the importance that is to be gained by the company in terms of maintaining the value of the company and maintaining the requirements of the different internal and the external individuals who are present in the organisation. Sociological theory of corporate governance The presence of the social theory of the corporate governance will be allowing the effective development of the board composition that will be creating the values of the organisational and the practices and the policies, which will be benefiting the company and the employees, or the individuals who are related to the organisation. It is important to toe that the sociological theory of corporate governance will be indicating the power and the wealth distribution in the company. The powers that are to be achieved and ruled on by the different employees who are working in the company are based on the presence of the given theory. This is because there will be the effective and fair distribution of the wealth, which in organizational terms is the salary, and the power, which in organisational terms is the designation of the employees working in the company, will be entertained efficiently (Fligstein & Calder, 2015). The presence of the sociological theory will be enhancing the ability of the company in terms of maintaining the financial reporting for the company and ensure that the different perspectives. These perspectives, which are to be maintained in the company in terms of the calculation and the functions to be carried out in the company especially on the financial aspects of the company, is being maintained an entertained. It is important to note understand that the presence of the corporate governance will be helping the solving of the problems and the issues that present in the interlocking dictatorship and the concentration that is to be present in the company. The focus of the sociological theory is the gaining of the objective of the company in terms of the different activities that will be maintains the social culture in the company abiding by the rules and the objective of the company (Aguilera, Desender, Bednar & Lee, 2015). Contribution of stewardship theory to effective governance in non-profit and for-profit organisations The non-profit organizations are the ones that do not conduct the business activities in order to gain interest of profit for the company. The income that is being obtained by a company that is non-profit organisation is reuse the income and the profit gained in the organisation itself. It is important to note that the for-profit organisational on the other hand, it based on the different type of activities which that will be improving the rate of profit gain in the company. It is important to note that the presence in corporate governance is equally active in both the forms of organisation. The stewardship theory of the corporate governance theory that will be allowing the organization to enhance the corporate governance policies and the steps, which are to be taken into, account by the company. It is important to note that most of the corporate governance theories are based on the self-interest but the stewardship theory is based on the rejection of the self-interest (Van Puyvelde, Caers, Du Bois & Jegers, 2016). The identified theory is based on the trust that the company has on the employees who are working in the company and the objectives of the company in terms of maintaining the overall production process in order to serve the community. It is important to note that the model of the stewardship theory is based on the sustainability approaches that are to be taken by the organization in order to ensure that the increasing concern for the environment due to the different operations in the company is being handled effectively. Various effectiveness is being provided by the use of the given theory in the companies in terms of the business operations, which are to be carried out in the company. It is important to note that the use of the stewardship theory will be helping the company in gaining more clients that are following the similar objectives as in the company following (Van Puyvelde, Brown, Walker & Tenuta, 2018). It has been noted that the presence of the stewardship theory in the non-profit organisation will be helping the company in gaining the objectives of the company, as the employees will be tending to work with the similar interventions. However, it has been analysed that the presence of the stewardship theory in the for-profit organisations will not be helping the company in gaining any efficiency in terms of the achievement of the objectives for the company if the goals of the employees and the goals of the company are not similar. This indicates that the contribution of the stewardship theory in the company, which is a non-profit organisation, is high in comparison to the organisation that is based on the for-profit motives (Laverty, Sheridan, Smith-Ruig & Hovey, 2018). There will be effective development of the moral of the company with the presence of the stewardship theory in the company. It is important to note that the movement in the morale of the company will be allowing the objectives to be gained in a clearer perspective in comparison to the companies that do not hold any stewardship theory in their organisational structure of the corporate governance. Relationship of the values and beliefs present in a leader in terms of effective governance in organisations The effective governance within the organization Hardy amies Ltd. follows the proper mechanism that manages to create the systematic work. Planning and considering the organized working basis manage to generate the functional working efficiency that determines the organizational culture in a better manner. Any organization proposes its particular working initiation by following the pathway of the leaders and their working segments. The result of the structural working planning along with the particular assessment considers the leadership management that helps to achieve the several organizational objectives (Jha, 2016). The effective leadership practices within the organization along with the good governance at all levels like private, private and civil helps to create the proper initiation in a particular manner. In order to sustain efficient administration, to fulfill different goals the organization needs to present the planning procedure in an applicable manner. The good governance along with the organized leadership processes generates the sustainable quality assistance and helps to deliver first-rate services in a better manner (Pechlaner, Kozak & Volgger, 2014). The constant planning related to leadership purposes can manage to form the higher level of productivity that requires ethical leadership criteria. The essential qualities related to leaders need to match with the overall organizational requirement so that the later work prospect could able to process. Moreover, the different planning processes along with the support of good governance utilize the resources in a particular manner so that the growth procedure can able to maintain (Klettner, Clarke & Boersma, 2014). Implementation of different principles by accessing several qualities of the leadership perspective manages to system the entire organization. Good governance and effective leadership dynamism Considering and creating the dynamism can process with the particular assessment that manages to create coherent and cohesive purposes to manage future working initiation. From the several evaluations, it is quite necessary to understand that achieving common goal and process towards commitment can generate better planning based statement. In general, leadership within the organization is all about managing a relationship that helps to generate positive interaction with other employees and manage the stakeholders. The significant values and beliefs within a leader ensures that the effective decision making can able to process by judging the root cause of suitable operational perspective. By engaging the proper planning and exercise the suitable management criteria the proper leadership management can able to create the particular work affairs (Franzoni, Salvioni & Gennari, 2016). Both formal and informal organizational process need to manage by considering the proper decision-making process that managed by the leaders. The significance and importance of participation of leaders can manage to generate the proper entitlement that realizes the development and progression basis in a proper manner. The good governance of the organization also focuses on participation; accountability and transparency that the leaders within the organization need to manage by following the suitable rules and regulations (Hristov & Zehrer, 2015). As good government, helps to ensure social, political and economic priorities to managing the broad aspect can match up with the most valuable working perspective in decision-making and allocation of resources. As the appropriate leadership, qualities process skills and knowledge so the main aspect in suitable governance structure initiates proper progression considering long-term working perspective. Conclusion Thus, it can be concluded that the presence of the corporate governance theory will be helping the company in terms of the maintenance of the different values of the company and maintaining the overall approach of the development of the company’s requirement in terms of fulfilling the needs of the company and the stakeholders of the organisation. It has been analysed that the different activities that are to be carried out in the company should be based on the corporate governance theory, which is to be maintained in the company. For example the company Hardy amies Ltd follows effective development of the company policies and the practices which will be influencing the overall achievement of the common goals of the company.