Abstract:
This study looks into how employee engagement in Pakistani firms is affected by internal control
and corporate governance. This study examines the wider effects of traditional governance
frameworks on company culture, employee engagement, and trust, despite their primary focus on
financial accountability and compliance. Data from 326 workers in a Textile sector was gathered
using a quantitative methodology, and multiple regression, correlation, and descriptive statistics
used for analysis. The results show that employee engagement is significantly and favorably
correlated with both corporate governance and internal control, with internal control showing a
somewhat greater predictive effect. Employee commitment and performance have been observed
to increase in a trustworthy and inclusive work environment that is fostered by strong ethical
leadership, open decision-making, and efficient control mechanisms. By highlighting the effects
of governance,systems on human resources and providing useful advice for managers and HR
specialists, the; study adds to the expanding corpus of literature. There are recommendations for
i
future research that incorporates industry-specific and qualitative analysis, acknowledging
limitations such time restrictions, budgetary barriers, and limited generalizability.
Focusing on Pakistan's textile sector offers a narrow perspective for examining the connection
between internal control, corporate governance, and employee engagement in an area that is both
economically significant and frequently understudied. The textile sector, which accounts for a
significant portion of Pakistan's GDP and employment, has unique difficulties such shifting global
demand, labor-intensive processes, and changing regulatory requirements. Transparency, moral
leadership, and accountability may be impacted by the fact that many textile companies are family
owned or run using unofficial governance systems. Research on this sector can reveal how formal
internal control implementation and sound governance methods affect employee motivation, trust,
dedication. Furthermore, industry-specific knowledge might result in useful
and long-term
suggestions for raising
organizational performance as well as
worker satisfaction in textile companies, which would benefit
the long-term expansion of Pakistan's biggest industrial
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sector.
