The correct answer is C because project governance should consider both the cultural and ethical norms of the communities in which the organization operates and those of any other organizations involved. Governance is not limited to decision rights, reporting lines, and approval processes. It also establishes the behavioral expectations, accountability model, ethical standards, stakeholder treatment, and decision environment for the project. Projects frequently affect communities, customers, regulators, suppliers, partners, and internal teams. If governance ignores cultural or ethical expectations, the project may face resistance, reputational harm, stakeholder conflict, compliance issues, or poor adoption of project outputs. In multi-organization projects, governance must also respect the ethical and cultural norms of partner organizations because decisions, responsibilities, communication styles, escalation practices, and acceptance expectations may differ. This is especially important in international, public-facing, sustainability-related, or joint projects. Option A is incomplete because it excludes other organizations involved. Option B is also incomplete because it excludes the community context. The source question set presents “Both A and B” as the complete governance answer.

Reference topics: project governance, cultural norms, ethical norms, community context, multi-organization projects, stakeholder environment.