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Chapter 1

The concept of stewardship

4.1 What is the concept of stewardship?

Stewardship is a relationship of accountability by one person or group for their
management of resources and decision-making on behalf of another person or group
(sometimes referred to as a principal). In a financial accounting context, employees
(whether managers or directors) are ultimately accountable to the owners of that
business (such as shareholders in a company) for the use of resources under their
control and for the outcome of decisions they make in the use of those resources.

The steward is placed in a position of trust to manage and account for the resources
placed under their control by the principal. Accordingly, they should uphold
fundamental ethical principles as follows:

 integrity

 objectivity

 professional competence and due care

 confidentiality

 professional behaviour.

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