Governance, Ethics, and Sustainability

This report discusses the practices of Timberwell in terms of governance, ethics, and sustainability. It explores the economic, environmental, and social sustainability factors and their impact on the company. The report also highlights the strategies and initiatives taken by Timberwell to achieve sustainability and comply with regulations. The findings suggest that Timberwell is making efforts to improve its business processes and ensure long-term economic growth while considering cultural, social, and environmental factors.

GOVERNANCE, ETHICS, AND SUSTAINABILITY

Executive summary
In this report, different practices of Timberwell are discussed according to GRI standards.
This firm has been penalized for different malpractices like destruction of biodiversity and
inequality among employees. Different factors like environmental, social and economic
factors are discussed according to GRI standards. Moreover, planning and associated costs
that this firm is approaching are properly discussed. These planning and strategies can help
Timberwell to gain sustainability in their business. Different factors like energy consumption,
improper practices that impacted nature and community are also discussed in this report. The
conclusion part has been drawn from the overall discussion of this report.
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Table of Contents
Introduction................................................................................................................................4
A. Economic Sustainability........................................................................................................4
i) Disclosure 201-2.................................................................................................................4
ii) Disclosure 205-3................................................................................................................5
iii) Disclosure 206-1...............................................................................................................5
B. Environmental sustainability.................................................................................................6
i) Disclosure 302-1:................................................................................................................6
ii) Disclosure 304-2:...............................................................................................................6
iii) Disclosure 307-1:..............................................................................................................7
C. Social sustainability...............................................................................................................7
i) Disclosure 401-1.................................................................................................................8
ii) Disclosure 406-1................................................................................................................8
iii) Disclosure 413-1...............................................................................................................8
Conclusion..................................................................................................................................9
Reference list............................................................................................................................10
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Introduction
Sustainability in business operations helps a firm to utilize resources properly that satisfies
every stakeholder. There are three essential factors of sustainability that includes economic,
social and environmental. These factors need to be observed and evaluated by every
organization for ensuring the goals are met. A number of sustainability issues are faced by
Timberwell, which is a construction company. Managing economic sustainability can help to
manage various risks. In addition, environmental and social sustainability is required for
increasing satisfaction of stakeholders. In this report, different factors of sustainability have
been discussed by maintaining GRI standards in a proper way.
A. Economic Sustainability
Economic sustainability can be defined as organizational practices that help in ensuring long-
term economic growth of the company. However, Antolín-López et al. (2016) have
mentioned that companies are bound to ensure that they need to maintain economic
sustainability without affecting cultural, social and environmental factors of society
negatively. Timberwell is facing issues to maintain economic sustainability due to its high
rate of employee turnover. This company is developing strategies to develop long-term value
for its stakeholders. Organizational policy of Timberwell is being modified continuously as
this company is trying to improve its business process for ensuring sustainable economic
development.
i) Disclosure 201-2
Timberwell is cooperating with the Stanwell Commission to help them in getting
requirements to their Local Environmental Plan (LEP). Due to climate change and increasing
warming, risk of bushfire has taken place in Stanwell district. Timberwell has a new
development site in this district and this climate change may impact on that site. This
company wants to protect the environment from this risk of bushfire and taking initiative by
complying with Stanwell commission. It has been planned that this council will take effective
step within the next 6 weeks. This risk of bushfire may impact on financial condition of this
business if they do not immediately take initiatives to solve this matter.
This risk can be managed by considering certain requirements while developing new sites.
Maintaining longer distance between houses and use fire redundant raw materials for
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construction may help to maintain high fire safety. As suggested by Stazyk et al.(2016),
investment for protecting the community is necessary and it helps organizations to support
sustainability. Timerwell is going to spend $4 million for this initiative. In addition, this firm
has hired and another firm for planning of town and it is expected that this organization can
help in reducing the project cost. Timberwell needs to pay $50000 to this external company
as well.
ii) Disclosure 205-3
In this case, Dennis, a former employee of Timberwell has complained against this company
regarding corruption. This complaint has been lodged in the state Corruption commission and
it has resulted in one public corruption case. In this scandal, two business partners and five
employees of this company are found to be involved in this scandal. It has been found that
these seven stakeholders of this company have offered bribe to the officers of council project.
Aim of this corruption was to influence growth of this company with the help of approval
process of council. According to Cai et al. (2016), it is the duty of owner to maintain business
ethics in all levels and incident of corruption cannot be supported for any cause. Timberwell
has taken decision regarding this scandal with efficiency and this company has suspended
those five employees without paying them. Moreover, this company has terminated the
partnership agreement with two parts, who are accused of corruption. This company is
focusing on ensuring ethical practice in their business and it is expected that this kind of
event will never repeat.
iii) Disclosure 206-1
As mentioned by Ağan et al.(2016), companies that show and competitive behavior face legal
issues and more financial loss. In this case, it has been found that Dennis, a former employee
of Timberwell has launched several complaints against this company in different government
authorities. Based on one of Dennis's complaints, Australian Competition and Consumer
Commission (ACCC) have proceeded against this company in the Federal Court. ACCC has
alleged that this company is misusing its power to prevent new entrants in their marketplace.
This legal case, it has been mentioned that Timerwell has said that they can reduce or
withdraw orders at any time if suppliers make any deal with a newly emerged competitor.
Judgment of this case is pending as the federal court will provide judgment in next four
months.
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B. Environmental sustainability
Timberwell has undertaken systematic approach for environmental sustainability. This
organization does proper review of activities and its effect on the environment. Energy
consumption rate is also reviewed by Timberwell that proves it as an energy-efficient
company. This firm has adopted a systematic approach to maintaining environmental
sustainability. As opined by Batista and Francisco (2018), system approach helps to measure
environmental sustainability of a firm by assessing all services, products, and operations and
measuring its impact on the environment. As mentioned in the case study, it has cleared about
0.45 hectare of land that caused them a huge fine. This has impacted in their image and need
for a proper plan is essential (Cegarra-Navarro et al. 2016). Timeberwell now believes that all
its services and operations should respect environment and this firm must undertake
conservation management practices.
i) Disclosure 302-1:
According to the report provided by Timberwell, it can be seen that energy consumption of
this company is efficient. This organization has used calculation tool, which was
recommended by Australian department of industry and science. This firm does majority of
energy consumption from various non-renewable resources. Energy consumption from this
source is 1.0 gigajoule. In addition, they also consume fuel from other renewable resources.
Consumption of energy from this sector is 0.5 gigajoule. Total electricity consumption done
by Timberwell is 2.0 gigajoule. Hence, total energy consumption done by this company is 3.5
gigajoule. It can be noted that 1 gigajoule is equal to 10^9 joules. As opined by Jizi (2017),
energy consumption is a great issue that impacts on environmental sustainability. This
organization needs to review and report their energy consumption and prepare reports
periodically. Thus assessment of energy consumption can help them to take proper steps to
control consumption rate.
ii) Disclosure 304-2:
As per the case study, Timberwell has been fined $200000 for destructing 0.45 hectares of
ecological grassland that is endangered, which violates corporate ethics. As stated by
DiSegni et al.(2015), corporate ethics analyzes moral and ethical problems that usually occur
within a business environment. Timberwell has planned to develop medium conversion at
Otford Park. This is because 60% of that site is covered with sedge frog. The proposal of
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construction can render the site inconsistent regarding protection of frogs. This firm is
working collaboratively with Stanwell council and they are working with other organizations
of environmental protection to frame strategies in controlling proposed development of
concerned site. This proposal can impact on conservation of these frogs and biodiversity can
be protected. As mentioned by Lewis et al.(2015), each and every organization must have
taken steps to conserve land and natural resources. This firm has also undertaken
environmental impact assessment that reveals efforts of this company to conserve rare species
of frog. This organization has shown intention to convert the habitat that can impact on
survival rate of this species of frogs.
iii) Disclosure 307-1:
This company has already faced penalty of $200000 for destructing 0.45 hectares of land that
was covered by endangered coastal grasslands community. Destruction of habitat falls under
biodiversity conservation act 1999and violation of which can cause fine to the organization
(Rahdari and Rostamy, 2015). The court found this firm and ordered to review the vegetation
management plan of this company. This company has extended an audit program to its major
contractors and successfully implemented a rehabilitation plan. As mentioned in the case
study, the cost of this rehabilitation plan is $440000. As opined by Upward and Jones (2016),
conflict resolution mechanisms need to be incorporated by a firm for ensuring compliance
with laws and regulations. Moreover, they should give attention to roles of internal teams that
can help to frame proper strategies with compliance with the law. They need to disclose
clearly role and responsibilities of the internal team to manage conflicts with laws.
C. Social sustainability
This factor ensures that an organization is able to attain holistic sustainability. This firm has
done management of corporate responsibility for achieving this objective. As opined by
Lopes (2017), different activities and operations of a firm have significant social and
economic impacts on local communities. Impacts on community can be reduced by engaging
stakeholders and framing proper strategies. Organizations need to maintain social
responsibility for gaining positive response from associated communities. Sustainable
operations can help to meet needs of community and engage them in various planning.
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i) Disclosure 401-1
Employee turnover rate must be lower than the rate of employee hired and this ratio indicates
growth of organizations (Lueg and Radlach, 2016). In this case, Timberwell has near about
58 male staff and it has appointed 12 new employees to run their business activities with
efficiency. However, higher rate of employee turnover is the main reason behind this decision
of recruitment. 17 employees of this company have left this firm. In the case study, it has
been mentioned that these former employees have joined competitors and some of them have
started their new business. Rate of employee turnover is higher than recruitment rate and
Timberwell has taken initiative to make up this loss. They have increased rate of work pay
and a day off in a month have been announced. This company is trying their best to retain
existing workforce.
ii) Disclosure 406-1
One case of discrimination has taken place during the period of reporting. One former
employee, Dennis has claimed for workplace harassment in the Fair Work Commission. He
has mentioned that he has faced age-discrimination at workplace. Other employees of
Timberwell are from 30 to 50 and he is older than 50 years. Due to this reason, other
employees used to humiliate him on a regular basis. As mentioned by Carayannis et al.
(2015), employers are liable to train their employees regarding anti-discrimination and
importance of maintaining ethics in workplace. The commission has upheld the claim of
Dennis and has ordered Timberwell to pay $4400 to this employee as compensation. In
addition, this company has been ordered to update its anti-discrimination policy and provide
training to its employees regarding antidiscrimination. Timberwell has complied with all the
orders mentioned by the Fair Work Commission.
iii) Disclosure 413-1
Timberwell has taken initiative and programs regarding engagement of community and this
can help in increasing their participation. Engagement of community is done through
arranging local meetings and taking various community development programs. As stated by
Epstein (2018), sustainability in business can be achieved by engaging local community and
doing good to them. Timberwell is taking initiation of community development program to
meet the needs of local community of affordable social housing. This firm is also working
collaboratively with Stanwell council for aligning with the proposed local environmental
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plan. Hence, different risks like bushfire that can impact both environmentally and socially
can be mitigated (Hahn et al. 2018). In addition, they have committed to providing land
boundaries and they will maintain distance between the buildings. Moreover, they will use
fire-resistant materials while developing those social buildings. Hence, this can ensure the
safety of local community and they can be engaged in a proper way.
Conclusion
It can be concluded that Timberwell has faced different sustainability issues that have
impacted on their image. However, they have taken various steps to increase their
sustainability in the future. Proper investments have been done by them to implement these
strategies of sustainability. This can help them to comply with different laws and legislation
and future complications can be avoided. They are working with Stanwell council for
increasing sustainability of their project at one of the sites. In addition, they are giving more
focus on consuming renewable sources of energy. This can help them to apply sustainability
in their business operations and reputation of this firm can increase in future.
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