Governance Ethics and Sustainability Report

This report examines the sustainability practices of Timberwell Construction, a company facing allegations of corruption, anti-competitive behavior, and environmental violations. It analyzes the company's compliance with GRI standards and explores its management approach to addressing these issues. The report highlights the importance of sustainability reporting for businesses and the need for ethical and responsible practices.

GOVERNANCE ETHICS
AND SUSTAINABILITY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
(A.) ECONOMIC SUSTAINABILITY...........................................................................................1
I) Disclosure 201-2 Financial implications and other risks and opportunities due to climatic
change.........................................................................................................................................1
ii) Disclosure 205-3 confirmed incidents of corruption and action taken...................................2
Iii) Disclosure 206-1 legal action for anti-competitive behaviour, anti-trust and monopoly
practises.......................................................................................................................................2
Management approach to issue:..................................................................................................3
(B.) ENVIRONMENTAL SUSTAINABILITY..............................................................................4
I) Disclosure 302-1 Energy consumption within the organisation..............................................4
(ii.) Disclosure 304-2 significant impacts of activities, products and services on biodiversity..4
iii.) Disclosure 307-1 Non-compliance with environmental laws and regulations.....................5
Management approach to issue:..................................................................................................5
SOCIAL SUSTAINABILITY.........................................................................................................6
I). Disclosure 401-1 New employee hires and employee turnover.............................................6
ii.) Disclosure 406-1 Incidents of discrimination and corrective actions taken..........................7
iii.) Disclosure 413-1 Operations with local community engagement, impact assessments and
development programs................................................................................................................7
Management approach to case study:.........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................11

INTRODUCTION
Sustainability means to meet the needs to present without compromising future
generations abilities (Pérez‐López, Moreno‐Romero and Barkemeyer, 2015). Every type of
business needs to comply with corporate sustainability in order to protect environment in which
its business is established. Generally it has three pillars that is economic, environment and social
which formally considered as people, planet and profits. Modern businesses must have to
provide sustainability report for developing brand positioning and to achieve stakeholders trust.
Industries must have to decide to prepare such reports for achieving support from customers,
government and from shareholders.
For developing sustainability report, GRI standards are the first global standards which
introduced by government for business industries (Diouf and Boiral, 2017). Therefore, in this
report explanation will be provided on three pillars in context with company. In this report
selected company is Timberwell Construction which deals in building apartment complexes in
Stanwell Council district. Further, three piller will be elaborated with complaint which filled by
one of its employee Dennis McCabe.
MAIN BODY
(A.) ECONOMIC SUSTAINABILITY
Economic sustainability is the process of increasing economic ability to support defined
level of economic production in nation. Information which contained in this reporting convince
stakeholders about company's potential competitive resources and its low level of risk.
I) Disclosure 201-2 Financial implications and other risks and opportunities due to climatic
change
This is the disclosure through which company have to disclose details relating to risk and
opportunities which occurred due to climatic change (GRI 201: Economic Performance, 2016).
Reporting organisation will prepare report with following requirements:
a.) risk and opportunities which arises with the climatic change and which have potential to
change business operations, revenue and expenditures which are as follows-
 Description of risk and opportunities with classification of physical and regulatory or
other changes.
 Description of impact which occurred because of risk and opportunities.
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 Before taking an action, description of financial implication posted by risk and
opportunity.
 Details of method which used to mitigate risk and opportunities.
 Cost which required to manage such risk and opportunity.
b.) If company did not have effective system to calculate financial implications, costs or to make
projects related to revenue then company shall have to report its plans to develop such necessary
system (Epstein, 2018).
ii) Disclosure 205-3 confirmed incidents of corruption and action taken
Disclosure 205 relates to anti-corruption which means that companies must have to
disclose information which relates to operations assessed for risks which comply with
corruption, communication and training for anti-corruption policies and procedures and about
confirmed incidents of corruption and action taken (Disclosure 205-3: Confirmed Incidents of
Corruption and Action Taken, 2019).
Reporting organisation must have to report the following information:
 Total number and nature related to confirmed incidents of corruption.
 Number of incidents in which employee dismissed for bad behaviour and corruption.
 Total incidents where termination has been handed over for business contract.
 Any public legal cases has been brought against organisation or its employees during
financial year.
Iii) Disclosure 206-1 legal action for anti-competitive behaviour, anti-trust and monopoly
practises
This is the disclosure which sets out reporting requirement for entities regarding their
anti-competitive behaviour (GRI 206: Anti-Competitive Behaviour, 2016). Therefore, reporting
requirements for organisations are as follows-
 Entity must have to disclose legal actions pending or get completed during financial year
which regards to anti-competitive behaviour, violation of anti-trust and monopoly
practises which identified in organisation business practises.
 Further, entity also have to disclose main outcomes related to legal actions including
decisions or judgements.
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Management approach to issue:
Material topic Description Management approach
Disclosure 201-2 Financial
implications and other risks
and opportunities due to
climatic change
It has been found that due to
the operations of Timberwell
construction, there is a huge
impact environment which is
providing a warming effect
and increases risk of bushfires.
In response to such allegation,
company have amendate its
practises to local environment
plan where higher security has
been provided to such area and
larger boundaries also be
created around bushfire area.
Disclosure 205-3 confirmed
incidents of corruption and
action taken
Separate complaint has been
filed by Dennis to state
corruption commission that
there are five employees and
two business partners who are
involved on doing corruption
activities where to approve
company's development
application through council
approval process these
members have offered bribe to
such officers.
With this allegation, all five
employees have been
suspended and Timberwell has
also terminated its partnership
contract with that two
members.
Disclosure 206-1 legal action
for anti-competitive behaviour,
anti-trust and monopoly
practises
Dennis filled number of
complained regarding
Timerwell's operations with
allegation that there is an anti-
competitive conduct by which
there has been as misuse of
market power and exclusive
dealings. Further, ACCC
alleged that company engaged
This case is to be heard by
Federal court in four months.
Therefore, in order to redeem
this company must have to
aligned with business
objectives which effectively
deployed and managed where
no monopoly practises will
able to run.
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in such activities to prevent
entrance of new development
in market.
(B.) ENVIRONMENTAL SUSTAINABILITY
Environmental sustainability is the process of maintaining factors and practises which
helps in developing contribution for quality of environment on a long term basis. Some of
disclosure which every company must have to disclose is as follows-
I) Disclosure 302-1 Energy consumption within the organisation
This is the disclosure which related to contribution of energy consumption from non-
renewable resources lead to climatic change (GRI Disclosure 302-1, 2019). The reporting
requirement of organisation is as follows-
a.) entity must have to disclose total amount of fuel consumption within organisation from the
use of non-renewable sources.
b.) entity have to disclose consumption of total fuel within organisation from renewable
resources.
c.) multiplies such total in:
 electricity consumption/sold
 heating consumption/sold
 cooling consumption/sold
 steam consumption/sold
d.) entity also have top disclose total consumption of energy within the organisation in multiples
e.) calculation method of standards, methodologies, assumptions used and source of used
conversion factor (Alshuwaikhat and et,al., 2017).
(ii.) Disclosure 304-2 significant impacts of activities, products and services on biodiversity
This disclosure has been developed to protect environmental dimension in sustainability
concern which has impact upon living as well as non-living natural systems of environment
(304: Biodiversity, 2018). This protection is important to endure survival of plant and animal
species. The reporting requirements of organisation is as follows-
a.) entity must have to disclose nature of significant impact on biodiversity with reference to:
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 Construction of manufacturing plants, mines or transport infrastructure,
 pollution which caused because of business operations,
 introduction of invasive pests, species,
 decrease in species,
 conversion of habitat
b.) entity also have to disclose significant direct and indirect positive or negative impact upon:
 affected species
 impacted areas
 duration of impact
 reversibility and irreversibility of impacts
iii.) Disclosure 307-1 Non-compliance with environmental laws and regulations
This disclosure have been developed to comply with reporting requirement related to
environment concern. Main motive of such disclosure is to protect business environment with
some rules and regulations (Disclosure 307-1: Non-compliance with environmental laws and
regulations, 2019.). The reporting requirements of organisation are as follows-
a.) entity must have to report significant fines and non-monetary sanctions which are non-
compliance with laws and regulations related to environment in terms of:
 total values of significant fines in monetary terms,
 total number of non-monetary sanctions,
 cases which brought mechanisms of dispute resolution
b.) company also have to report brief statement of fact when they have not identified and did not
comply with environmental laws and practises.
Management approach to issue:
Material Description Management approach
Disclosure 302-1 Energy
consumption within the
organisation
An allegation has been
developed on Timerwell
construction that company is
using huge amount of fuel
consumption because of which
its availability decreasing in
With the release of second
media, Timberwell
construction explained its
energy consumption table
which shows that it has
effective fuel consumption
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environment. It is also been
alleged that company is not
energy efficient organisation.
from renewable resources
practises where at least 50% is
used within next three years.
Disclosure 304-2 significant
impacts of activities, products
and services on biodiversity
It has been alligated that with
the construction work of
Timerwell, it is estimated that
the density which developed
for the site would irreversibly
convert the habitat called rare
Wallum sedge frog.
With the first release of media,
company explained that they
are working with Stanwell
council and environmental
groups to develop strategy for
managing proposed
development site to conserve
Wallum sedge frog.
Disclosure 307-1 Non-
compliance with
environmental laws and
regulations
A separate complaint has been
filled to department of
Environment and energy and it
is found with the investigation
by department that company is
critically endangering
ecological community and
coastal grasslands because of
which fined has been charged
to company with $200000 for
clearing 0.45 hectare of
community.
With this allegation,
Timberwell was ordered for
reviewing their vegetation
management plan, because of
company extend its audit
program for contractors and
also implemented
rehabilitation plan at cost of
more than $440000.
SOCIAL SUSTAINABILITY
Social sustainability considered as ability to meet and develop procedure and structure for
meeting needs of the present member but also to develop abilities which maintain needs of the
future generations. Certain disclosures in this section is as follows-
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I). Disclosure 401-1 New employee hires and employee turnover
This is the reporting disclosures which sets out the requirements of employment in any
type of business industry. Through this disclosure an approach to employment has been
developed where elements like job creation, hiring, recruitment, retention and related practises
been more emphasized (GRI 401: Employment (Containing Standard Interpretation 1), 2016).
The reporting requirement of organisation is as follows-
a.) entity must have to report total number and rate of new employee appointed during
financial year by age group, gender and region.
b.) further, entity also have to report total number and rate of employee turnover during
reporting period which is also by age group, gender and region (Eizenberg and Jabareen, 2017).
ii.) Disclosure 406-1 Incidents of discrimination and corrective actions taken
This standard have been developed to set out the topic discrimination from the
workplace. With this implementation, organisation is been expected to avoid any type of
discrimination against any person at the workplace (GRI Disclosure 406-1, 2019). Reporting
requirement of such disclosure in organisation is as follows-
a.) entity must have to report, total number of incidents which occurred in organisation during
financial year,
b.) disclosure of action and incidents with reference to:
 review of incidents by organisation,
 plans which implemented as remedy,
 review of plan through internal management review process,
 incident which has no longer subject to action,
iii.) Disclosure 413-1 Operations with local community engagement, impact assessments and
development programs
This disclosure has been set out for the topic of local community which defined as
persons or groups which living and working in certain areas which impacted economically,
socially and environmentally (GRI Disclosure 413-1, 2019). The reporting requirement of
organisation is as follows-
a.) entity must have to disclose operations which has been conducted for local community
engagement, impact assessment and through development programs with the use of:
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 social impact assessment, gender impact assessment which based on participatory
processes,
 impact upon environmental assessment and ongoing monitoring,
 disclosure of result of impact upon social and environmental,
 program which held for local community development,
 etc.
Management approach to case study:
Material Description Management approach
Disclosure 401-1 New
employee hires and employee
turnover
It has been found with the
Timberwell case study that
there is a high employment
turnover of company and also
they did not have effective
staff engagement practises. Its
result appears that more than
17 employees in company has
leaved.
To manage such allegation,
company has increases worker
pay rates and implemented
monthly day off policies to
engage existing staff of
company.
Disclosure 406-1 Incidents of
discrimination and corrective
actions taken
One employee Dennis McCabe
filled allegation against
company regarding workplace
harassment. This has been
claim in fair work commission
where employee said that he
faces an discrimination by his
co-workers on the basis of age
because he was only employee
who is older than 50 years of
age and facing jokes related to
his age.
With this allegation, company
paid $4400 to employee and
also updated its anti-
discrimination policy and also
provided anti-discrimination
training to employees as per
the order to Commission.
Disclosure 413-1 Operations It has been found with the case With the third release of
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with local community
engagement, impact
assessments and development
programs
study that company has
considerable expenses for
engaging local communities,
perform impact assessment,
also have formulated social
development programs for the
development of residential
purpose.
media, company has started
initiatives for Environmental
impact assessments, local
residents meetings and local
community development
programs for meeting needs of
such peoples.
CONCLUSION
From the above report it can be concluded every company needs provide sustainability
report as per the standards of GRI on a range of economic, environmental and social impact. In
this report, issues which faced by Timberwell construction has been identified such as anti-
discrimination, anti-competitive, corruption, energy consumption allegation. Therefore, it can be
summarised that Company must have to develop practises which comply with standards of GRI
by which proper care will be taken to protect business environment.
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REFERENCES
Books and Journals
Alshuwaikhat, H.M and et,al., 2017. The development of a GIS-based model for campus
environmental sustainability assessment. Sustainability. 9(3). p.439.
Diouf, D. and Boiral, O., 2017. The quality of sustainability reports and impression
management: A stakeholder perspective. Accounting, Auditing & Accountability
Journal. 30(3). pp.643-667.
Eizenberg, E. and Jabareen, Y., 2017. Social sustainability: A new conceptual
framework. Sustainability. 9(1). p.68.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Pérez‐López, D., Moreno‐Romero, A. and Barkemeyer, R., 2015. Exploring the relationship
between sustainability reporting and sustainability management practices. Business
Strategy and the Environment. 24(8). pp.720-734.
Online
304: Biodiversity. 2018. [Online]. Available through <http://reports.clariant.com/2017/gri-
report/additional-information/gri-300-environmental-disclosures/304-biodiversity.html>
Disclosure 205-3: Confirmed Incidents of Corruption and Action Taken. 2019. [Online].
Available through <https://www.sika.com/content/corp/main/en/group/sustainability/gri-
standards/gri-205-anti-corruption/disclosure-205-3.html>
Disclosure 307-1: Non-compliance with environmental laws and regulations. 2019. [Online].
Available through <https://www.sika.com/content/corp/main/en/group/sustainability/gri-
standards/gri-307-environmental-compliance/disclosure-307-1.html>
GRI 201: Economic Performance. 2016. [Online]. Available through
<https://www.globalreporting.org/standards/gri-standards-download-center/gri-201-
economic-performance-2016/>
GRI 206: Anti-Competitive Behaviour. 2016. [Online]. Available through
<https://www.globalreporting.org/standards/gri-standards-download-center/gri-206-anti-
competitive-behavior-2016/>
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GRI 401: Employment (Containing Standard Interpretation 1). 2016. [Online]. Available
through <https://www.globalreporting.org/standards/gri-standards-download-center/gri-
401-employment-2016/>
GRI Disclosure 302-1. 2019. [Online]. Available through
<https://standards.sinzer.org/gri/disclosure/302-1>
GRI Disclosure 406-1. 2019. [Online]. Available through
<https://standards.sinzer.org/gri/disclosure/406-1>
GRI Disclosure 413-1. 2019. [Online]. Available through
<https://standards.sinzer.org/gri/disclosure/413-1>
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