Santioso (2001) held that the definition of governance emphasizes economic management. However, the United Nations Development Programme (UNDP) considers sustainable development to be the major premise of governance (Johnson, 1997). Prakash and Hart (1999) proposed that governance is an organizing collective action, the scope of which comprises issues of structure (observing the forming process of relative decisions), control (using power to make every decision suitable for the structure) and process (concrete procedures of control and regulation).
The Organization for Economic Co-operation and Development (OECD) (2004) defined corporate governance as the system by which companies are directed and controlled. The framework of corporate governance should drive the market to be transparent and effective, build consistent laws, and indicate clearly the division of responsibilities between the supervising, monitoring and implementation units.