ABSTRACT

The concept of governance has been used in organizations, as well as literature, from different perspectives. One perspective of governance is related to legitimacy and compliance of the undertaking. Corporations, and the entities governing them, want to ensure that organizational activities are legitimate and comply with rules and regulations, defined by the law, and ethical boundaries, defined by society. This perspective is also evident in the governance literature, which considers conformance to internal and external requirements as one of the most important functions of governance. This perspective is generally applied on an institutional level.