What are the Similarities between agency and stewardship theory?

Agency theory and stewardship theory both address the relationship between principals and agents, focusing on the alignment of interests to promote effective decision-making. Both theories recognize the potential for conflicts of interest and emphasize the importance of trust and communication in these relationships. Additionally, they highlight the impact of incentives and governance structures on behavior, although agency theory tends to focus on control and monitoring, while stewardship theory emphasizes collaboration and shared goals. Ultimately, both theories aim to improve organizational performance through better understanding of the dynamics between stakeholders.