Governance, Ethics and Sustainability in Timberwell Construction

This report evaluates the sustainability of Timberwell Construction in terms of economic, environmental, and social impacts. It discusses disclosures related to financial implications, corruption, legal actions, energy consumption, and social sustainability. The report highlights the need for Timberwell Construction to comply with sustainability reporting standards.

Governance, Ethics and sustainability 1
Governance, Ethics and sustainability
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Introduction
Consolidated Set of Global Reporting Initiative (GRI) Sustainability Reporting Standards 2016
will be the major points of focus for preparing this report. The report will make evaluations on
the sustainability of Timberwell Construction since they are vital in helping companies to assess
the effect of their operations on the environment, economy and the society (Doh & Yang 2016
p.304). More so, sustainability reports for companies that engage in residential development are
always based on particular disclosures on economic, social and environmental standards. The
report will start with economic sustainability evaluation of Timberwell Construction which will
be explained on the basis of multiple disclosures concerning financial implication, corruption
and legal actions for anticompetitive actions relating to change in the climate. Thereafter, the
impacts of Timberwell's operations will be evaluated in relation to disclosures on failures to
comply with environmental restrictions, energy consumption as well as impacts of its operations
on biodiversity. The final section of the report will explain the evaluations of social sustainability
in regards to operations, discrimination incidences and attrition.
Discussion
A. Economic Sustainability
This section of the report is being evaluated based on a number of disclosures.
i) Disclosure 201-2
Under this disclosure, a detailed description of risks, financial implications and opportunities on
the company due to the climatic environment that arises from its undertakings are provided. As
such, a company that complies with disclosure 201-2 is needed to make reports on any

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information on shifts in revenues, expenditure as well as operations due to changes in the
climate. During the making of reports, it is also a prerequisite for the company to compile more
information on additional traits concerning the size of the indirect and direct impact (Hargovan
& Harris 2018). More so, a company should also report its plan and timeline in case there are no
systems for determining projections of revenues. From the case study that was analysed, it can be
seen that Timberwell faced paid fines due to the fact that its operations had severely endangered
the coastal grassland for the ecological group. The company cleared an area to meet its
construction purposes which significantly denatured the quality of fauna and flora (Ruiz-Lozano
& Nieto 2018 p.1222). From this point of view, disclosure could be created about techniques that
can be utilized to manage risk and opportunities like enhancing the efficiency of energy, fuel
switching as well as the use of carbon equivalents.
ii) Disclosure 205-3
The above disclosure is focused on confirming the incidences of corruption and undertaking
appropriate actions. In regards to this prerequisite, a company is required to reveal the exact
figure of the incidences of corruption that have taken place during the execution of its operations.
Also, it is a prerequisite to reveal any legal lawsuits against the entity and dismissal of its
employees (Barkemeyer & Lee 2015 p.315). Therefore, stakeholders should develop an interest
in the various incidences and their occurrence in the company under the above disclosure.
Evidentially, Timberwell offered bribes to council project officers during the approval process
for its proposed development projects. Although the final decision on the prosecution is yet to be
confirmed, this incident should be indicated in the company's sustainability reports. Also, the
action to terminate the contracts with external consultants must be revealed in the sustainability
reports by Timberwell Constructions (Tricker & Tricker 2015).

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iii) Disclosure 206-1
The above disclosure demonstrates the practices of reporting legal proceedings and actions for
antitrust, monopoly practices as well as anti-competitive actions. The above disclosure is focused
on declaring legal proceedings and actions against an entity for its anti-competitive and antitrust
behaviours. As such, the exact figure and results of legal proceedings and actions like decisions
and judgments should be revealed by a company. From the case study analysis, the Australian
competition and consumer commission (ACCC) claims that Timberwell was involving in
practices that violate anti-competitive behaviour and monopoly actions. Evidentially, the
company was involved in misusing market power and exclusive dealings which created a barrier
to entry of new firms in Stanwell district's market for development (Winkler 2017). In this
regard, Timberwell should disclose in its sustainability report that ACCC had filed a case against
its anti-competitive actions in the Federal court.
B. Environmental Sustainability
Evaluation of Timberwell's environmental sustainability will be executed with much focus on the
Global Reporting Initiative (GRI) disclosures.
i) Disclosure 302-1
Under this disclosure, a company is required to develop reports on the total usage of energy
whilst declaring usage of non-renewable and renewable energy accompanied by steam, cooling
and heating usage. In the due course, double counting of fuel usage should be ignored whereby
distinct reporting should be made for non-renewable and renewable sources. Most important,
calculation of the total energy used should be executed by making use of the formulae specified
under the disclosure (Szejnwald & Lessidrenska 2011 p.185). From the case study, it can be seen

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that Timberwell made a media release which showed that the company is efficient as far as
energy usage is concerned. The above was seen through the report on energy usage table that the
company attached to its media release. Most importantly, the table showed that Timberwell had
followed Australian Department of Science and Industry's recommended computation methods
to calculate its total energy usage figures. Also, media release showed that Timberwell also
depends on increments in the usage of non-renewable energy sources through the application of
environmental programmes. In this regard, it can be deducted that Timberwell Construction is
complaint to the environmental restrictions. In regards to disclosure 302-1, it is a necessity to a
reporting company to utilize generic and local conversion factors which are subjected to varying
approaches and methodologies (Esben 2015 p.107). From the case study analysis, it can be
viewed that the media release by Timberwell discloses that the company is compliant to the
restrictions and rules concerning the environment.
ii) Disclosure 304-2
Under this disclosure, a company is required to make reports on the impact of its actions,
products and services on biodiversity. Most important information that should be revealed in
such reports should be on pollution, shifts in ecological processes, habitat conversions as well as
an indirect and direct impact of the company's operations. In the due course, a company will
have sound knowledge about how the direct and indirect effects on biodiversity can be
addressed. Therefore, the company should clearly stipulate the foundation for presenting
structured as well as qualitative information to facilitate comparisons of the impact of its actions
over a period of time. From the case study analysis, it can be seen that that initiative to clear
areas for Timberwell Construction's projects had a significant impact on fauna and flora's
attitudes (Humphreys & Moon 2015 p.469). As such, Timberwell was ordered to conduct an

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external assessment of its management plan for its plant cover and to implement rehabilitation
plans. Therefore, all the actions involved in the execution of management and rehabilitation
plans will need to be disclosed in the company's sustainability plans.
iii) Disclosure 307-1
The above disclosure is focused on making reports on any incidences of non-compliance with
rules and regulations that govern the environment. As such, reporting companies should disclose
fines and non-monetary penalties that are imposed due to lack of compliance with specified
environmental rules and restrictions. In the due course, the exact figure of cases that arise
through conflict resolution approaches, considerable fines as well as monetary penalties should
be reported. In case there are no environmental rules and regulations, a company should compose
a brief statement about the absence of such policies in its sustainability reports (Alan 2010
p.234). From the case study analysis, it can be seen that judicial and administrative penalties are
to be implemented when a company fails to comply with environmental rules and regulations.
Also, Timberwell's activities do not conform to particular parameters. However, the lack of
compliance with the environmental rules and regulations leads to the elimination of adverse
liabilities in the environment without any prior consideration to the conformity of operations to
all parameters (Schwartz 2014).
C: Social Sustainability
i) Disclosure 401-1
Under this disclosure of Global Reporting Initiative standards, a company is required to reveal
information on new employees that its recruits as well as the degree of employee turnover. As
such, a company should reveal information on newly recruited employees based on their age, sex

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as well as religion. As a result, the exact number of employees in a company should be achieved
by calculating the rate at which new employees are recruited and the turnover of employees
(Crane & Matten 2016). From the case study analysis, it can be seen that the high rate of
employee turnover has been exhibited at Timberwell because of the existing uncertainty as well
as employee dissatisfaction. For example, a total of seventeen employees have parted ways with
Timberwell due to its existing conditions of work. More so, standards for sustainability reporting
require a company to reveal information about the processes that it uses whilst recruiting new
employees. Moreover, high levels of attrition rates have a significant impact on the level of
productivity in a company (Wang & Hsiao 2015 p.2233). Therefore, Timberwell Construction
should reveal information on the procedure and processes that it uses to hire and recruit new
employees for execution of its project activities.
ii) Disclosure 406-1
The above disclosure requires a company to declare information about any incidences of
discrimination as well as the existing actions that are used to address discrimination actions
among its team. Under this disclosure, a company should reveal information about incidences of
discrimination, the status of incidences as well as actions that have been undertaken to curb the
habit. From the case study analysis, it is indicated that employees engaged in discrimination
practices at Timberwell Construction which caused embarrassment and humiliation to the
victims within the company. The affected employee filed a harassment lawsuit at workplace
whereby the company was recommended by the Fair Work Commission to update its anti-
discrimination policies (Romero & Ruiz 2014). Therefore, the sustainability report by
Timberwell should reveal information about its plans to eliminate and prevent more incidences
of discrimination within its internal environment.

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iii) Disclosure 413-1
Under this disclosure, a company is required to formulate reports about their involvement with
development programs, local community as well as evaluation of the direct and indirect impacts.
As such, evaluations about existing monitoring, social impacts, environments as well as
adherence should be reported by a company. From the case study analysis, Timberwell should
consider specific actions for safeguarding vulnerable groups as well as distinct aspects of the
local community whilst making its sustainability reports. As a result, multiple numbers of
approaches should be utilized by the company to make evaluations of its community
involvement and human rights practices (Andreas 2014). Therefore, Timberwell Construction
should determine the number of approaches to identify traits of the community that it serves and
operates in.
Conclusion
The overall performance at Timberwell has been significantly reduced due to high rates of
employee turnover and reduced profits. The above has been attributed to the fact that the
company has failed to comply with the sustainability reporting standards that are stipulated by
the Global Reporting Initiative. Case study analysis indicated that Timberwell Construction
violated various acts when it engaged in anti-monopolists, bribery and anti-competitive actions
whilst undertaking its operations. More so, the impacts of a company's operations should always
be properly disclosed on the basis of doctrines of the Global Reporting Initiative. As such, a
company should disclose information concerning economic, environmental and social impacts of
its operations. In the given case study analysis, Timberwell Construction should formulate strict
compliance to various standards of sustainability reporting.

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