Stewardship is a defining hallmark of businesses that achieve success, significance and sustainability.
The word is often used in family business circles, and increasingly in business literature, but what does it exactly mean? The
2012 UK stewardship code states that:
Stewardship aims to promote the long-term success of companies in such a way that the ultimate providers of capital also prosper. Effective stewardship benefits companies, investors and the economy as a whole.
Family business stewardship is often defined as
the perspective of seeing the ownership as a responsibility to the next generation, to employees, and to the community
– rather than simply as a financial investment.
It encapsulates the essence of responsible and meaningful value creation in a sustainable way to benefit stakeholders, as well as the larger community that they are a part of. It underscores the importance of an ownership mindset, a long-term perspective and an inclusive approach.
These elements underpin and reflect the stewards’ motivation and commitment to nurture and grow what they are entrusted with, such that it can be handed over in a better shape to successors.
I was asked on twitter recently about my take on
Stewardship vs Ownership which I’ll include for you below.
Click through for the full thread.
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