 Bismillahi r-Rahman r-Raheem and As-Salaamu alaikum everyone, Sayyidu San Heather with all of you and we are continuing with corporate governance and in our last session we were talking about the agency theory and in the agency theory we looked at the relationship between the principles who are the shareholders of the company and the management who are the agents for the organization and again their interrelation with each other and also the possibility of different conflicts and how they lead to what we call agency problems and agency costs. Now moving ahead the second theory that we are going to be talking about today is stewardship theory. Now again when we are looking at the stewardship theory then the most important and pivotal aspect is the organization itself and the interrelation between the different stakeholders and the different shareholders. Now in the stewardship theory of corporate governance it basically discounts the possible conflicts between corporate management and owners and shows a preference for a board of directors made up primarily of corporate insiders. So like I was mentioning the second theory which is the stewardship theory again looks at the different variables and the relationship between the different stakeholders and shareholders and how there are different nuances and different conflicts and different situations in which the appropriate corporate governance framework would ensure that those deviations are minimized. Now when we are looking at the stewardship theory of corporate governance it tends to discount the possible conflicts between corporate management and owners and shows a preference for a board of directors made up primarily of corporate insiders. The theory defines situations in which managers are not motivated by individual goals but rather they are stewards whose motives are aligned with the objectives of their principles. So ladies and gentlemen further elaborating upon this what we see is that the environment of the organization is made in such a way that the management the top management is not motivated by individual goals but is basically motivated through collective goals and they act as the steward and again the role of the shareholders tends to change and they are primarily of corporate insiders which tends to further augment and reinforce the corporate governance mechanism of a particular organization. Given a choice between the self-serving behavior and pro-organizational behavior a steward's behavior will not depart from the interests of his organization control can be potentially counterproductive because it undermines the pro-organizational behavior of the steward by lowering his or her motivation. So again what we are seeing is that the organizational environment and culture is made in such a way that the organization comes first and these stewards which could be from the management and could be from the shareholders and the board of directors they all are more focused towards the betterment of the organization towards its growth towards its optimization and their personal goals and objectives are one step behind rather than they being ahead and the organizational goals tend to strive over here the organizational goals are the most important and the stewards then tend to take it more forward and their motivation basically emerges from the growth of the organization and the success of the organization rather than their own personal growth and aggrandizement. So this is how we look at the stewardship theory. The stewardship refers to the responsibility of the board to oversee the conduct of the business and to supervise management which is responsible for the day to day conduct of the business. In addition as stewards of the business the directors function as the catch all to ensure no issue affecting the business and affairs of the company falls between the cracks. So again what we see ladies and gentlemen is is that even the board of directors is completely focused towards the organization and organization comes first slogan or approach is the dominating factor in the stewardship theory and the board also gets involved in the operations of the organization and ensure that there is no fallback there is no fallout and there are no cracks wherever they see a problem they move towards its solution and ensure that the organization does not tend to stretch apart or does not tend to speak apart but actually the whole organization is glued together because of the level of motivation and the sense of ownership which exists within the management and within the board of directors and that tends to encapsulate the whole stewardship theory and tends to ensure that the primary and main beneficiary is the organization because of the collective constructive and positive input by the different stakeholders. Ladies and gentlemen the greatest barrier however to the adoption of the stewardship mechanism of governance lies in the risk of the propensity of the principles risk taking owners will assume that executives are pro organization agency costs are effective insurance against the self-interest behaviors of agents and even Gandhi also elaborated the concept of trusteeship for better understanding director role towards employees. So again ladies and gentlemen what we see is is that the barrier to stewardship is basically self aggrandizement self motivation self growth self enrichment and that tends to sometime act as a barrier because it becomes very difficult for the different stakeholders especially the board to have that level of propensity to rise above and not look at personal interests or personal preference and only focus on the organization as a whole and what we see is that this type of relationship can emerge in the context of trusteeships or trust but in a commercial organization this type of role becomes a little bit difficult and steward ship itself becomes a very difficult theory to practice practically and pragmatically. Thank you so much ladies and gentlemen.