ASSIGNMENT 03

Corporate Governance

JUNE 5, 2023
Submitted to: Dr. Usman Khursheed
Prepared by: Amrah Islam (SP20-BBA-023)
Table Of Content
Executive summary…………………………………………………………………. 02
Company Overview………………………………………………………………….02
Market Analysis………………………………………………………………………03
Product line…………………………………………………………………………... 03
Manufacturing and Supply Chain…………………………………………………….03
Marketing and Sales Strategy………………………………………………………...03
Operations and Management………………………………………………………….04
Financial Projections………………………………………………………………….04
Sustainability and Impact……………………………………………………………...04
Corporate Governance Model…………………………………………………………05
Shareholders……………………………………………………………………………05
Board of Directors……………………………………………………………………...05
Management……………………………………………………………………………05
Employees……………………………………………………………………………...05
Committees…………………………………………………………………………….06
Transparency and Accountability………………………………………………………06

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Executive Summary:
Green Threads, a sustainable clothing brand in Pakistan, follows a robust corporate governance
model to ensure transparency, accountability, and ethical practices. Our model involves
shareholders, the board of directors, management, and employees. Shareholders hold ownership
rights and influence decision-making. The board of directors provides strategic guidance and
oversight. Management executes decisions and handles day-to-day operations. Employees
contribute to the company's success. Committees focus on sustainability, compensation, audit,
and governance. We prioritize transparency, financial reporting, risk management, and ethical
conduct. By adhering to this model, Green Threads aims to produce environmentally-friendly
products while operating with integrity.

1. Company Overview
Vision:
To be a globally recognized brand that promotes sustainable fashion and inspires positive
change in the industry.
Mission:
To design, manufacture, and distribute environmentally-friendly clothing that combines style,
quality, and sustainability.
2. Market Analysis
Growing Demand:
The market for sustainable fashion is expanding rapidly, driven by increasing consumer
awareness of environmental issues and a desire for ethically-produced clothing.
Target Audience:
Our primary target audience consists of environmentally conscious consumers who value both
style and sustainability.
Competitive Landscape:
Analyze competitors in the sustainable fashion industry, identify unique selling points, and
develop strategies to differentiate ourselves.

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 3. Product Line
Eco-Friendly Fabrics:
Green Threads will use sustainable materials such as organic cotton, hemp, recycled polyester,
and bamboo to create our clothing line. These fabrics have lower environmental impacts and
reduce reliance on harmful chemicals and pesticides.

Stylish Designs:
We will focus on designing fashionable clothing that appeals to a wide range of consumers,
combining sustainability with trend-forward aesthetics.
Quality Assurance:
Emphasize the durability, comfort, and functionality of our products through rigorous quality
control measures.

4. Manufacturing and Supply Chain

Ethical Manufacturing:
Partner with suppliers and manufacturers that follow fair labor practices, ensuring safe working
conditions, fair wages, and respect for human rights.
Local Sourcing:
Whenever possible, source materials and production facilities locally to reduce transportation
emissions and support the local economy.
Supply Chain Transparency:
Maintain transparency throughout the supply chain, from sourcing raw materials to the
manufacturing and distribution process.
5. Marketing and Sales Strategy
Branding and Positioning:
Develop a compelling brand identity that communicates our commitment to sustainability and
appeals to our target audience.
Online Presence:
Establish a user-friendly e-commerce website that showcases our products and provides a
seamless shopping experience.
Social Media and Content Marketing:
Utilize social media platforms, content creation, and influencer partnerships to raise brand
awareness, engage with customers, and educate them about sustainability in fashion.
Retail Partnerships:

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 Collaborate with select retailers who share our values to expand our reach and accessibility to
customers.
6. Operations and Management
Team:
Build a diverse team with expertise in sustainable fashion, design, marketing, and operations.
Inventory Management:
Implement efficient inventory management systems to optimize stock levels, minimize waste,
and ensure product availability.
Customer Service:
Provide excellent customer service, responding to inquiries promptly and resolving issues
effectively.
7. Financial Projections
Start-up Costs:
Estimate initial investments for design, production equipment, website development, marketing,
inventory, and operational expenses would be 1 million.
Revenue Streams:
Generate revenue through direct online sales, retail partnerships, and potential collaborations.
Expenses:
Estimate ongoing operating costs, including production, marketing, inventory management,
employee salaries, and administrative expenses.
8. Sustainability and Impact
Environmental Initiatives:
Implement sustainable practices throughout the business, such as minimizing waste, reducing
water and energy consumption, and supporting recycling and upcycling efforts.
Social Responsibility:
Engage in social initiatives, collaborate with organizations supporting fair labor practices, and
give back to communities through partnerships and donations.

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 Corporate Governance Model

1. Shareholders
Role:
Shareholders of Green Threads are the owners of the company who have invested capital and
hold shares in the business.
Rights and Responsibilities:
Shareholders have the right to vote on significant company matters, elect the board of directors,
receive financial reports and disclosures, and participate in shareholder meetings. They are
responsible for providing capital, monitoring the company's performance, and ensuring
alignment with their interests.
2. Board of Directors
Composition:
The board of directors of Green Threads consists of a group of individuals elected by
shareholders, including external independent directors and key internal stakeholders.
Responsibilities:
The board is responsible for setting the strategic direction of the company, overseeing corporate
governance practices, and ensuring the company operates in the best interests of shareholders.
They provide guidance to senior management, review financial performance, monitor risks, and
make key decisions.
3. Management
CEO/Executive Team:
The Chief Executive Officer (CEO) or Executive Team leads the day-to-day operations of Green
Threads and implements the strategic decisions of the board.
Roles and Responsibilities:
The management team oversees different functional areas, such as design, production,
marketing, sales, and sustainability. They are responsible for executing the company's strategy,
achieving operational targets, managing resources, and driving business growth.
4. Employees
Structure:
Employees at Green Threads are organized into various departments and teams based on their
roles and responsibilities.
Roles and Responsibilities:

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Each employee has specific duties within their department or team, contributing to the overall
success of the business. They are accountable for their tasks, follow company policies and
values, and actively contribute to achieving organizational goals.
Employee Engagement:
Green Threads emphasizes employee engagement by promoting a positive work environment,
fostering a culture of collaboration and innovation, offering opportunities for professional
growth, and recognizing and rewarding employee contributions.

5. Committees
Sustainability Committee:
Responsible for developing and implementing sustainability initiatives, ensuring compliance
with environmental standards, and promoting environmentally-friendly practices throughout the
organization.
Compensation Committee:
Oversees executive compensation, equity-based incentives, and employee benefit programs to
ensure alignment with performance and shareholder interests.
Audit Committee:
Monitors financial reporting, internal controls, and compliance with accounting standards and
regulatory requirements.
Nomination and Governance Committee:
Identifies qualified individuals for board positions, oversees corporate governance practices, and
recommends improvements to the governance structure.
6. Transparency and Accountability:
Financial Reporting:
Green Threads maintains transparent financial reporting, adhering to accounting standards and
regulatory requirements. Financial statements are audited by independent auditors to ensure
accuracy and reliability.
Shareholder Communication:
Regular communication channels, such as annual general meetings, shareholder reports, and
investor presentations, are established to provide updates on company performance, strategies,
and major developments. Shareholders are encouraged to provide feedback and engage in
dialogue.
Risk Management:

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 Green Threads implements a robust risk management framework to identify, assess, and mitigate
risks. Regular risk assessments are conducted, and appropriate controls and mitigation strategies
are put in place to protect the interests of shareholders.
Ethical Standards and Code of Conduct:
Green Threads upholds a strong ethical culture by establishing a code of conduct and ethical
guidelines that govern the behavior of all employees, directors, and management. These
standards promote integrity, transparency, social responsibility, and sustainable business
practices.

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