Spirituality and Sustainable Business with a Stewardship Mindset

Spirituality and sustainable entrepreneurship can mutually support each other in making a positive impact on the world. By developing interconnected relationships, the individuals and stakeholders involved can find a sense of purpose. Sustainable entrepreneurship can therefore be seen as a practical manifestation of purpose, whether or not it is rooted in spirituality. In this article, I will explore how these three perspectives inspire and guide me in my business practice.

As the managing director of a medium-sized consultancy firm specializing in spatial development, I constantly ask myself, “Why am I doing what I do?” and “How can I contribute significantly to creating a better world?” These questions stem from my search for meaning. For a long time, I regarded having a sense of purpose as a luxury, but I am increasingly realizing its vital importance in motivating both myself and others to take action and drive change. In the face of various crises, such as climate change and its far-reaching consequences, I feel an urgent need to reverse the tide in our society. We human beings must collectively strive to do better for one another and for the planet. 

During my MBA studies a few years ago, I was introduced to the concept of sustainable entrepreneurship. At its core, sustainable entrepreneurship involves aligning a company’s strategy and operations with the creation of social value and systemic sustainability throughout the entire value chain. These companies actively avoid activities that compromise opportunities for future generations. 

By embracing sustainability, such organizations play a significant role in transitioning our economy and society towards a more sustainable future (Nijhof & Jeurissen, 2010). Tony Chocolonely, a company committed to ensuring slave-free chocolate production worldwide, serves as an excellent example.

One approach to sustainable business and contributing to the sustainability transition is adopting the stewardship theory as a business model. “Stewardship theory defines situations in which managers are not motivated by individual goals but act as stewards whose motives align with the objectives of their principals” (Davis et al., 1997, p. 21). Stewardship theory emphasizes that managers should act in the best interests of the collective, both within and outside the organization (Nijhof et al., 2019). It entails individuals in the organization taking personal responsibility for the impact of organizational activities on the well-being of stakeholders (Hernandez, 2008). By embracing the stewardship model, businesses can operate sustainably while upholding social values and goals. The stewardship theory is often juxtaposed with the principal-agency theory, which assumes that individuals act rationally to optimize and maximize their own interests (Segal & Lehrer, 2012). Shifting from an agency mindset to a stewardship mindset represents a transformative shift within the business landscape.

The concept of stewardship resonates deeply with me as it aligns with my personal understanding of how one should act ‘right’. It speaks to the inner motivations that I also encounter on my spiritual journey. Transforming our conventional business practices from an agency mindset to a stewardship mindset gives me a sense of purpose. This transformation requires unwavering conviction and steadfastness from within. It challenges the traditional ways of conducting business and creating value. Owners, employees, chain partners, and customers may not immediately embrace these changes due to reasons such as profit optimization, short-term results, resistance to change, and more. However, my inner conviction reinforces the belief that there is no alternative; I am convinced that this transformation is necessary and will contribute to the greater good. And this conviction leads me to the realm of spirituality.

Spirituality is a fundamental phenomenon that taps into the deepest motivations of individuals and explores existential questions without definitive answers. I adopt an integrative approach to spirituality, defining it as “the capacity of any entity to become aware of its connection with existence beyond perceived existence” (Nandram, 2019). Spirituality can be seen as a practice and it can deepen our understanding of epistemology, our ways of knowing (Nandram, 2022). 

By delving into these deeper layers of existence, we can discern for ourselves what will be the right thing to do.knowledge model, we create space for exploring deeper motivations and inner knowing, which in turn facilitates the integration of higher-order goals into the vision and strategy of the company. This can include values such as caring for others, promoting prosperity for all, and fostering lasting happiness.

Spirituality, as a deepening of ways of knowing, explores new dimensions within ourselves that cannot be easily measured but can inspire and influence our thoughts and actions (Nandram, 2022). Recognizing spirituality in individuals opens up avenues for different conversations about business that go beyond numbers and tangible results. Questions such as “What do you believe in?” and “What do you aim to achieve in that realm?” become central. By integrating spirituality as a knowledge model, we create space for exploring deeper motivations and inner knowing, which in turn facilitates the integration of higher-order goals into the vision and strategy of the company. This can include values such as caring for others, promoting prosperity for all, and fostering lasting happiness.

The stewardship theory draws upon knowledge from psychology and sociology (Donaldson & Davis, 1991). According to Davis et al. (1997), higher-order needs and intrinsic values play a crucial role in motivating individuals to act as stewards for their organizations. Identifying with and committing to the organization’s interests are important factors that drive people to work for the collective and organizational goals (Hernandez, 2012, p. 176). (Tselekis, 2020). What is described here as carriers for a stewardship mindset can, I believe, be furthered by spirituality because it provides direction for what is the right thing to do from an inner knowing. A stewardship orientation has the potential to promote meaning as an individual outcome.

For me, this makes the interplay between spirituality, the resulting insights about purpose, and a matching business model for sustainable business such as the stewardship model, very relevant and powerful. I find it useful, instructive and inspiring to experiment with the interplay of these perspectives and what this entails for the company and its services, the employees, the stakeholders and myself – and to observe the contribution this subsequently makes to sustainability transitions in organizations and in our society.

References

• Nandram, S.(2022). Spiritualiteit: de discipline voor zakendoen met het onbekende. Nyenrode Business Universiteit. [oratie]
• Nandram, S.S. (2019). Integrative spirituality in the fourth industrial revolution. Vrije University Press. Amsterdam. [Written lecture for the official inauguration to full-professor at the Faculty of Religion and Theology of the Vrije Universiteit Amsterdam https://research.vu.nl en publications/ integrative-spirituality-in-the Fourth-industrial revolution-from]
• Nijhof, A. H. & Jeurissen, R. J. (2010). The glass ceiling of corporate social responsibility: Consequences of a business case approach towards CSR. International Journal of Sociology and Social Policy, 30(11/12), 618-631. doi:10.1108/01443331011085222
• Tony Chocolonely Tony’s onze missie – Tony’s Chocolonely. Geraadpleegd 13 mei 2023, op https://tonyschocolonely.com/nl/onze-missie
• Tselekis, E.T. (2020). Transitie in de praktijk: De invloed van stewardship op de ontwikkeling van dynamic managerial capabilities binnen adviesbureaus voor de fysieke leefomgeving en de impact op duurzaamheidstransitie. Nyenrode Business Universiteit. [thesis]

Recommended reading

• Davis, J.H., Schoorman, D.F., & Donaldson, L. (1997). Towards a Stewardship Theory of Management. Academy of Management Review, 22(1), 20-47.
• Donaldson, L. & Davis, J.H. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management, 16(1), 49-64.
• Hernandez, M. (2008). Promoting stewardship behavior in organizations: a leadership model. Journal of Business Ethics, 80(1), 121-128.
• Hernandez, M. (2012). Toward an understanding of the psychology of stewardship. Academy of Management Review, 37(2), 172-193.
• Jensen, M.C. & Meckling, W.H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3, 305-360.
• Nijhof, A., Schaveling, J., & Zalesky, N. (2019). Business, society, and the need for stewardship orientation. Journal of Organizational Change Management, 32(1), 145-163.
• Segal, L., Lehrer, M. (2012). The institutionalization of stewardship: Theory, propositions, and insights from change in the Edmonton Public Schools. Organization Studies, 33, 169–201.