IMPACT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL ON EMPLOYEE ENGAGEMENT

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 ! sector.