August 2, 2025 • 4 mins
Explore the differences between stewardship and ownership in business. Stewardship emphasizes responsible management of resources on behalf of others, focusing on long-term value and ethical practices. Ownership centers on personal control, rights, and benefits derived from assets. Understanding both approaches can help shape effective business strategies and leadership styles.
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Episode Transcript
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Speaker 1 (00:00):
Today, we're diving into a hot topic, stewardship versus ownership
in business. Sarah, to kick things off, can you break
down what these two concepts mean in the corporate world.
Speaker 2 (00:11):
Absolutely, ownership is about legal rights and control thinks shareholders
or founders with direct stakes. Stewardship, on the other hand,
is more about caretaking. A steward manages assets or a
company with a focus on long term health, even if
they don't own it outright.
Speaker 1 (00:27):
So would a CEO running a public company be considered
a steward since they don't actually own most of the shares.
Speaker 2 (00:34):
Exactly, CEOs act as stewards, making decisions that ideally benefit
all stakeholders, not just themselves. It's like being a ship captain.
You may not own the vessel, but you're responsible for
its safety and course.
Speaker 1 (00:48):
I love that analogy. But let's not forget some owners
double as stewards. How does that overlap play out in practice.
Speaker 2 (00:56):
That's a great segue to our next segment, the classic
founder de lay. Should you prioritize your own interests as
an owner or act as a steward for employees, customers,
and the wider community.
Speaker 1 (01:07):
Let's explore that founder's dilemma. Imagine you're a startup owner
facing a buyout offer. Do you cash out for personal
gain or continue to steward the company for its mission.
Speaker 2 (01:17):
It's a tricky balance. Harvard research shows founders who stay
as stewards often preserve company culture and innovation, but rejecting
lucrative buyouts can anger investors expecting ownership perks like high returns, so.
Speaker 1 (01:31):
It's almost a tug of war. Stewards want long term growth,
owners want quick wins. Have you seen any real world
examples where this tension exploded?
Speaker 2 (01:41):
Definitely? Think of ben Jerry's after their Unilever acquisition, debates
flared over preserving social missions versus maximizing profit. The founders
wrestled with losing stewardship power even as owners.
Speaker 1 (01:54):
That's fascinating. Are there models where stewardship and ownership can
peacefully coexist or conflict inevitable?
Speaker 2 (02:01):
Some companies, like Patagonia build stewardship into their ownership structures.
Founder Ivon Schuenard literally gave the company to a trust
for planet stewardship. It's rare, but possible.
Speaker 1 (02:13):
Building on that, Let's talk models. What does stewardship look
like structurally compared to old school shareholder primacy.
Speaker 2 (02:20):
Great question. Traditional ownership is all about maximizing shareholder value,
but stewardship models like bcore or cooperatives embed social and
environmental goals into their charters. This shift's accountability beyond just profits.
Speaker 1 (02:34):
That's a big leap. Are there stats showing the impact
or is this all just feel good marketing?
Speaker 2 (02:41):
Actually a two than twenty two b Lab report found
BCRE grew revenue twenty eight percent faster than traditional firms
over five years. Stewardship can drive performance, not just virtue signaling.
Speaker 1 (02:54):
Interesting, but what about the critics who say stewardship leads
to decision paralysis. Too many stakeholders, not enough focus.
Speaker 2 (03:01):
It's a legitimate concern, but some argue that broader input
yields better risk management and innovation. It's like having more
eyes on the road, slower at times, but fewer crashes.
Speaker 1 (03:11):
Let's look ahead with ESG investing and conscious capitalism trending,
is the line between stewardship and ownership starting to blur?
Speaker 2 (03:20):
Absolutely? Millennials and gen z are demanding more from businesses,
pushing for stakeholder capitalism. Blackrock CEO even said companies ignoring
stewardship risk being left behind.
Speaker 1 (03:32):
Suppose the future where AI owns and manages assets, could
machines be stewards or is stewardship inherently human?
Speaker 2 (03:39):
Wild scenario. AI could optimize for stakeholder metrics, but stewardship
requires empathy and judgment until we can program those Humans
still have the edge, at least for now.
Speaker 1 (03:50):
So whether you're an owner, steward or somewhere in between,
adapting to these shifts seems crucial. Any parting advice for
business leaders.
Speaker 2 (04:00):
Stay curious and flexible. Build systems for both profit and purpose.
You never know when the stewardship mindset will give you
a competitive edge.
Today, we're diving into a hot topic, stewardship versus ownership
in business. Sarah, to kick things off, can you break
down what these two concepts mean in the corporate world.
Speaker 2 (00:11):
Absolutely, ownership is about legal rights and control thinks shareholders
or founders with direct stakes. Stewardship, on the other hand,
is more about caretaking. A steward manages assets or a
company with a focus on long term health, even if
they don't own it outright.
Speaker 1 (00:27):
So would a CEO running a public company be considered
a steward since they don't actually own most of the shares.
Speaker 2 (00:34):
Exactly, CEOs act as stewards, making decisions that ideally benefit
all stakeholders, not just themselves. It's like being a ship captain.
You may not own the vessel, but you're responsible for
its safety and course.
Speaker 1 (00:48):
I love that analogy. But let's not forget some owners
double as stewards. How does that overlap play out in practice.
Speaker 2 (00:56):
That's a great segue to our next segment, the classic
founder de lay. Should you prioritize your own interests as
an owner or act as a steward for employees, customers,
and the wider community.
Speaker 1 (01:07):
Let's explore that founder's dilemma. Imagine you're a startup owner
facing a buyout offer. Do you cash out for personal
gain or continue to steward the company for its mission.
Speaker 2 (01:17):
It's a tricky balance. Harvard research shows founders who stay
as stewards often preserve company culture and innovation, but rejecting
lucrative buyouts can anger investors expecting ownership perks like high returns, so.
Speaker 1 (01:31):
It's almost a tug of war. Stewards want long term growth,
owners want quick wins. Have you seen any real world
examples where this tension exploded?
Speaker 2 (01:41):
Definitely? Think of ben Jerry's after their Unilever acquisition, debates
flared over preserving social missions versus maximizing profit. The founders
wrestled with losing stewardship power even as owners.
Speaker 1 (01:54):
That's fascinating. Are there models where stewardship and ownership can
peacefully coexist or conflict inevitable?
Speaker 2 (02:01):
Some companies, like Patagonia build stewardship into their ownership structures.
Founder Ivon Schuenard literally gave the company to a trust
for planet stewardship. It's rare, but possible.
Speaker 1 (02:13):
Building on that, Let's talk models. What does stewardship look
like structurally compared to old school shareholder primacy.
Speaker 2 (02:20):
Great question. Traditional ownership is all about maximizing shareholder value,
but stewardship models like bcore or cooperatives embed social and
environmental goals into their charters. This shift's accountability beyond just profits.
Speaker 1 (02:34):
That's a big leap. Are there stats showing the impact
or is this all just feel good marketing?
Speaker 2 (02:41):
Actually a two than twenty two b Lab report found
BCRE grew revenue twenty eight percent faster than traditional firms
over five years. Stewardship can drive performance, not just virtue signaling.
Speaker 1 (02:54):
Interesting, but what about the critics who say stewardship leads
to decision paralysis. Too many stakeholders, not enough focus.
Speaker 2 (03:01):
It's a legitimate concern, but some argue that broader input
yields better risk management and innovation. It's like having more
eyes on the road, slower at times, but fewer crashes.
Speaker 1 (03:11):
Let's look ahead with ESG investing and conscious capitalism trending,
is the line between stewardship and ownership starting to blur?
Speaker 2 (03:20):
Absolutely? Millennials and gen z are demanding more from businesses,
pushing for stakeholder capitalism. Blackrock CEO even said companies ignoring
stewardship risk being left behind.
Speaker 1 (03:32):
Suppose the future where AI owns and manages assets, could
machines be stewards or is stewardship inherently human?
Speaker 2 (03:39):
Wild scenario. AI could optimize for stakeholder metrics, but stewardship
requires empathy and judgment until we can program those Humans
still have the edge, at least for now.
Speaker 1 (03:50):
So whether you're an owner, steward or somewhere in between,
adapting to these shifts seems crucial. Any parting advice for
business leaders.
Speaker 2 (04:00):
Stay curious and flexible. Build systems for both profit and purpose.
You never know when the stewardship mindset will give you
a competitive edge.
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