Final answer:
Organizational governance typically involves the board of directors, auditing firms, and outside investors, who all contribute to oversight and transparency in a company's operations.
Step-by-step explanation:
When discussing the governance of organizations, we are referring primarily to the board of directors, the auditing firms, and the outside investors. The board of directors is elected by the shareholders and is the cornerstone of corporate governance, offering oversight and direction to top executives. Auditing firms are chosen to scrutinize the company's financial records and attest to their accuracy, providing a layer of accountability and transparency. Outside investors, such as those managing large mutual funds or pension funds, also play a critical role, exerting influence and sometimes exerting pressure for stronger governance practices. An example of a significant governance failure was with Lehman Brothers, where these mechanisms did not prevent the dissemination of incorrect financial information to the market.