Governance, Ethics and Sustainability

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This report analyzes the implementation of GRI reporting standards in the hypothetical case of Timberwell Constructions, focusing on economic, environmental, and social sustainability. It discusses the company's actions and challenges in achieving economic sustainability, such as financial implications of climate change and incidents of corruption. It also examines the company's efforts in environmental sustainability, including energy consumption and impacts on biodiversity. Additionally, it addresses social sustainability issues, such as employee turnover and incidents of discrimination. The report concludes with the company's engagement with the local community and plans for future sustainability reporting.

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Governance, Ethics and Sustainability

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INTRODUCTION
The aim of sustainable development is to ensure that current generations are fulfilling
their needs without creating challenges for future generations to fulfil their needs.
Organisations have to focus on three areas while implementing sustainable policies
which include economic, environmental and social (Griggs et al., 2013). The GRI
reporting standards are first global standards which provide guidelines for
sustainability reporting of companies. These standards are based on economic,
environment and social sustainability, and they focus on providing key policies for best
practices for reporting made by organisations (Global Reporting, n.d.). In this case, the
GRI reporting standards will be implemented in the hypothetical case of Timberwell
Constructions. The management approach or the actions taken by the management to
address these issues will be analysed in this report as well.
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ECONOMIC SUSTAINABILITY
The actions which are taken by a company in order to support the long term economic
growth without creating any challenges for the achievement of social, cultural and
environmental outcomes by the communities are referred to economic sustainability
practices (Cetiner and Edis, 2014). The aim of these policies is to achieve smarter
growth while focusing on long term planning of growth. This approach is focused on
reducing costs of living, cost-cutting and increasing the investment in research and
development programs. Organisations face various challenges while implementing and
complying with these policies since it hinders their revenue streams. The companies
have to prioritise the long term health and growth of ecosystems rather than profit
generation in the business (Santoyo-Castelazo and Azapagic, 2014). However, this
approach leads to the sustainable growth of the business which is better for its
stakeholders. It enables companies to tackle the issues of corruption and anti-
competitive which achieving sustainable growth.
Disclosure 201-2 Financial implications and other risks and opportunities due to
climate change
Timberwell faces many implications of climate change which are likely to affect its
profits, expenditures and overall business operations. Due to the amendments
introduced by the Stanwell Council, the company has to face many financial
implications. These amendments are made by the council in the Local Environmental
Plan (LEP) which is focused on addressing the issue of climate change. The threat of
climate change is becoming more prominent with time which poses a major threat for
everyone, and it is a part of social responsibilities of companies to take appropriate
measures for stopping this global issue (Hall, Scott and Gossling, 2013). The main
objective of the amendments is to impose higher standards on companies in order to
ensure bushfire safety. This threat is increased in the area due to increase in the usage
of fire-retardant building materials and expansion in the space between buildings and
land boundaries. A site of Timberwell which is situated in this area is in the threat of
bushfire, and it comes with the scope of the amendments of LEP. In order to address
this issue, the management has taken decisions to work with the council in order to
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adhere to the amendments. These amendments will be followed by the company within
a period of six weeks. Compliance with these policies will impose a financial burden of
$4 million on Timberwell. The company is also working with an external town planning
firm which is charging $50,000 from the company in order to reduce the threat of
climate change and bushfire while complying with LEP amendments.
Disclosure 205-3 Confirmed incidents of corruption and actions taken
Timberwell has faced a complaint which is made against the employees and business
partners of the company for corruption. In this complaint, it is alleged that five
employees and two business partners of the company were involved in corrupt
practices. This complaint is made to the State Corruption Commission which has found
those members guilty. Corruption is a major factor that adversely affects the ability of a
company to achieve its economic sustainability goals since it adversely affects the
interest of the stakeholders of the company (Krishnan, Teo and Lim, 2013). In this case,
the management of Timberwell took a strict decision in order to set an example for
others to prohibit corruption. The five employees are suspended from the company
without any pay, and the company will no longer continue its business relationship with
those partners who were charged for engaging in corrupt practices.
Disclosure 206-1 Legal actions for anti-competitive behaviour, anti-trust, and
monopoly practices
Timberwell is facing a case which is filed against the company for anti-competitive
practices by its executives. Based on the complaint, an investigation is started by the
Australian Competition and Consumer Commission (ACCC). Anti-competition is a major
factor which affects economic sustainability since it reduces the economic growth of a
country by establishing a monopoly of companies in the market which is an
unfavourable condition for customers (Pitelis, 2013). In the case against Timberwell, it
is reported that the executives of the company threatened a group of builders who
decided to join together to start their own building company. It was reported that the
executives told that they would lose their business with the company if they go forward
with this plan. The purpose of this threat is establishing a monopoly of the company in

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the market by misusing its powers. The management of the company has not taken any
action on this matter since this case is yet to be heard within the next four months.
ENVIRONMENTAL SUSTAINABILITY
It is defined as a process of maintaining factors and practices in an effective manner
which contributes to the quality of the environment on a long term basis. These
practices enable companies to ensure that they use natural resources in an appropriate
manner so that they did not become extinct in the long run (Tilman and Clark, 2014).
The major issues face by companies when implementing these policies is that it
becomes difficult for them to find alternative resources for conducting their business
operations. The use of natural resources in operations of companies has increased
substantially in the past few years which show the importance of implementing
environmental sustainability policies to achieve desired goals without exploiting
natural resources (Malhotra, Melville and Watson, 2013).
Disclosure 302-1 Energy consumption within the organisation
While implementing environmental sustainability practices, the companies have to
focus on reducing their energy consumption by non-renewable resources and
implementing policies for using renewable resources in their operations (Slade and
Bauen, 2013). Timberwell has used the calculation tool which is provided by the
Australian Department of Industry and Science in order to calculate its energy
consumption and identify how must it comes from renewable and non-renewable
sources. It is found that the electricity consumption of the enterprise is 2.0 Gigajoules.
The company uses renewable sources for only 0.5 Gigajoules whereas it uses non-
renewable resources for 1.0 Gigajoule. The use of renewable sources in the operations
of the company is relatively low; therefore, the management of the company has
initiated a program in order to increase renewable energy resources in the business up
to 50 percent within next three years.
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Disclosure 304-2 Significant impacts of activities, products, and services on
biodiversity
While managing their business operations, companies have to evaluate their impact on
the biodiversity in order to ensure that they are not adversely affecting the biodiversity
in the local areas (Turnhout, Dewulf and Hulme, 2016). Timberwell has found that one
of its sites which are situated in Otford Park is the home of rare wallum sedge frogs. It is
found that if the company continued its operations in the area, then it can adversely
affect the living habitat of these frogs which could lead to their extinction. The company
wanted to find a solution to conduct its operations in a sustainable manner without
affecting the biodiversity of the area. Therefore, the company is working along with
Stanwell Council and some other environmental organisations to develop biodiversity
management and conservation plan which will be targeted on protecting these frogs.
The management is finding and reporting the sustainable actions which are taken in
order to protect these frogs. It is reported that the company might be reconsidering its
place for operations in order to protect the biodiversity in the area.
Disclosure 307-1 Non-compliance with environmental laws and regulations
The government introduces different laws and regulations which are targeted on
regulating the business operations of companies in order to ensure that they take
reasonable steps to protect the environment and its resources (Gouldson and Murphy,
2013). Timberwell has violated some of these laws due to which a penalty is imposed on
the company for $200,000. The reason for the imposition of this penalty is that the
company cleared 0.45 hectares of coastal grasslands which were a part of the critically
endangered ecological community. In order to address this issue, the company is
ordered to check and review its vegetation management plan. It is also ordered that the
company should extend the reach of its audit program to monitor its operations. A
rehabilitation plan which should not be less than $440,000 must be implemented by the
company as the order of the court.
SOCIAL SUSTAINABILITY
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The practices which are implemented by organisations in order to ensure the well-being
of their members and also ensuring that the future generations are able to protect their
members as well are referred to social sustainability policies (Magee et al., 2013). The
issues faced by companies while implementing these policies is caused due to
discrimination and unequal treatment to the workers which negatively affect the
company and its stakeholders.
Disclosure 401-1 New employee hires and employee turnover
A major challenge faced by Timberwell is lack of female employees in the workplace
since there are 58 employees in the company who are all male. The rate of hiring of new
employees in the company is 20.6 percent which is way lower than compared to
employee turnover rate which is 29.3 percent. The company has appointed 12 new
apprentices whereas 17 of its employees leave the company. Gender equality in the
workplace is a key part of the social sustainability process to ensure that the company is
able to maintain diversity among its employees (Boulouta, 2013). In order to address
this issue, the management of Timberwell should increase the number of female
employees in the workplace to promote gender diversity.
Disclosure 406-1 Incidents of discrimination and corrective actions taken
One of the employees of the company has reported to the Fair Work Commission
regarding discriminatory practices in the organisation. It was reported by the employee
that he has faced age-based discrimination in the workplace because he was the only
one above the age of 50 years whereas others were between the age of 30 and 50 years.
It is important that corporations provide a safe working environment to companies
which are free from discriminatory behaviour to achieve social sustainability goals
(Bouzid and Padilla, 2014). In order to address this issue, the company was ordered to
pay $4,400 to the employee. Moreover, it was ordered to update its anti-discrimination
policy and also provide training to its employees to avoid discriminatory practices.
Disclosure 413-1 Operations with local community engagement, impact
assessments, and development programs
It is a responsibility of companies that they engage in the development process of local

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communities to conduct their operations in a sustainable manner (Holladay and Powell,
2013). Timberwell has made a media release to demonstrate that it is a good corporate
citizen by working with the Council for survival of the frogs. It is also complying with
LEP amendments to maintain higher standard of bushfire safety. The corporation has
also increased the engagement with the local community by interacting with them in
local resident meetings and development programs to meet the need for affordable
housing.
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CONCLUSION
To conclude, Timberwell has faced many issues in this reporting period due to
involvement in anti-competitive and discriminatory behaviours and also failing to
protect environmental resources while conducting business operations. Penalties have
been imposed on the company for its failure to comply with sustainability practices
which negatively affect the interest of its stakeholders. The company is working with
the Stanwell Council and engaging with local communities to fulfil its sustainability
goals. The company will focus on providing a more positive GRI reporting in the next
reporting period.
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REFERENCES
Boulouta, I. (2013) Hidden connections: The link between board gender diversity and
corporate social performance. Journal of business ethics, 113(2), pp.185-197.
Bouzid, A. and Padilla, M. (2014) Analysis of social performance of the industrial
tomatoes food chain in Algeria. New Medit, 13(1), pp.60-65.
Cetiner, I. and Edis, E. (2014) An environmental and economic sustainability assessment
method for the retrofitting of residential buildings. Energy and Buildings, 74, pp.132-
140.
Global Reporting. (n.d.) GRI and Sustainable Reporting. [Online] Available at:
https://www.globalreporting.org/information/sustainability-reporting/pages/gri-
standards.aspx [Accessed on 9th February 2019].
Gouldson, A. and Murphy, J. (2013) Regulatory realities: The implementation and impact
of industrial environmental regulation. Abingdon: Routledge.
Griggs, D., Stafford-Smith, M., Gaffney, O., Rockström, J., Öhman, M.C., Shyamsundar, P.,
Steffen, W., Glaser, G., Kanie, N. and Noble, I. (2013) Policy: Sustainable development
goals for people and planet. Nature, 495(7441), p.305.
Hall, C.M., Scott, D. and Gossling, S. (2013) The primacy of climate change for sustainable
international tourism. Sustainable Development, 21(2), pp.112-121.
Holladay, P.J. and Powell, R.B. (2013) Resident perceptions of social–ecological
resilience and the sustainability of community-based tourism development in the
Commonwealth of Dominica. Journal of Sustainable Tourism, 21(8), pp.1188-1211.
Krishnan, S., Teo, T.S. and Lim, V.K. (2013) Examining the relationships among e-
government maturity, corruption, economic prosperity and environmental degradation:
A cross-country analysis. Information & Management, 50(8), pp.638-649.
Magee, L., Scerri, A., James, P., Thom, J.A., Padgham, L., Hickmott, S., Deng, H. and Cahill,
F. (2013) Reframing social sustainability reporting: towards an engaged
approach. Environment, development and sustainability, 15(1), pp.225-243.

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Malhotra, A., Melville, N.P. and Watson, R.T. (2013) Spurring impactful research on
information systems for environmental sustainability. MIS Quarterly, 37(4), pp.1265-
1274.
Pitelis, C.N. (2013) Towards a more ‘ethically correct’governance for economic
sustainability. Journal of Business Ethics, 118(3), pp.655-665.
Santoyo-Castelazo, E. and Azapagic, A. (2014) Sustainability assessment of energy
systems: integrating environmental, economic and social aspects. Journal of Cleaner
Production, 80, pp.119-138.
Slade, R. and Bauen, A. (2013) Micro-algae cultivation for biofuels: cost, energy balance,
environmental impacts and future prospects. Biomass and bioenergy, 53, pp.29-38.
Tilman, D. and Clark, M., 2014. Global diets link environmental sustainability and human
health. Nature, 515(7528), p.518.
Turnhout, E., Dewulf, A. and Hulme, M. (2016) What does policy-relevant global
environmental knowledge do? The cases of climate and biodiversity. Current Opinion in
Environmental Sustainability, 18, pp.65-72.
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