Which of the following can be categorized as an external factor influencing corporate governance?

Regulatory frameworks are indeed an external factor that significantly influences corporate governance. These frameworks consist of laws, regulations, and guidelines established by governmental and international bodies that dictate how companies should operate to ensure accountability, fairness, and transparency. They can also include industry standards and best practices that organizations must adhere to in order to maintain their legal and ethical responsibilities.

Regulatory frameworks shape the governance structures within corporations and can impact decision-making processes, reporting requirements, and compliance obligations. This ensures that executive actions align with the broader interests of stakeholders, investors, and the public.

In contrast, company policies, employee engagement, and internal audits are primarily internal factors that pertain to how an organization manages its internal operations, culture, and procedures, rather than external influences that guide corporate governance.