Psychological capital is a positive psychological condition owned by individuals, which can be used as a basic model for forming employee engagement. Psycohological capital consists of four aspects, namely: self efficacy, optimism, hope, and resilency(Youssef & Avolio, 2007).Meanwhile, employee engagement is a positive motivational state for employees with the presence of four behavioral aspects, namely: me, stay and strive. Employee engagement is strongly influenced by the psychological condition of employees at work or employee perceptions of the company organization. This situation can develop Psycohological capital of employees towards the Corporation and increase employee engagement of employees towards the Corporation. Therefore, this research will measure psycohological capital as the basic model that employees have in increasing employee engagement. This research was conducted on employees of an airline, using a psychological capital questionnaire with 32 questions, a validity score of 0.48 and a reliability score of 0.93. While the employee engagement questionnaire has 24 questions, the validity score is 0.42 and the reliability score is 0.90. The hypothetical model has been tested and fit with the data, thus it can be described between psychological capital and employee engagement significant, with a correlation β = 0.37 (t – value = 8.38> 1.96).
With the public controversy generated by the explosion of hostile takeover activity during the 1980s, we again are witnessing debate about theories of the corporation. Responding to widespread concerns about the harsh impact of hostile takeovers on target company employees and others, state legislatures, courts, and commentators have focused on the notion of the corporation as aggregation, defined broadly to include not just shareholders and management but also other participants in the corporate enterprise. This broader conception serves to justify corporate law reforms responsive to the interests of these various non-shareholder, non-management constituencies. Opponents of regulation that impinges on shareholders’ financial interest in unimpeded access to takeover bids (regardless of impact on non-shareholders) have responded with argument based on their nexus-of-contracts interpretation of the corporate aggregation, but their efforts have proved to be unpersuasive in the legislatures and courts.
The wave of globalization and industrialization trends experienced all over the world has resulted in the emergence of large corporations as well as conglomerates. These large corporations contribute immensely to the social, economic development of their host nations. This paper explores the concept of corporate governance as well as the need for corporate governance. Also examined are the basic principles of corporate governance. The focus of this paper is on the external group of individuals (stakeholders) to the organization. This paper defines them as well as their roles in ensuring corporate governance and wealth creation for the business organization. It concludes by making recommendations on how businesses can strike a balance between achieving organizational goals and stakeholder needs.