Corporate Governance and Social Responsibility Report - Assessment

This report provides a detailed analysis of corporate governance and social responsibility, focusing on the sustainability reports of SandFire Resources and comparing them to the GRI G4 guidelines. It interprets Sandfire's phase of sustainability, highlighting areas of improved performance in environmental management, safety, and community engagement. The report also assesses the user-friendliness of the sustainability report based on the GRI index. Furthermore, it compares the quality of sustainability reporting between Wesfarmers and Westfield Corporation, referencing the Australian quality reporting comparison since 2014 ASX 3rd Edition. The analysis includes the evaluation of environmental and social aspects, risk management, and the integration of sustainability into business strategy. The report also includes a reflective journal on personal development.

Running head: CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY
Corporate governance and social responsibility
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Part A:..............................................................................................................................................2
Assessing and comparing sustainability report of SandFire for year 2015 and 2016 in relation to
G4 GRI Guidelines:.........................................................................................................................2
Interpreting the Sandfire’s Phase of sustainability:.........................................................................3
Areas of improved sustainability performance:...............................................................................5
Commenting on user friendliness of sustainability report using GRI index:..................................7
Part B:..............................................................................................................................................9
Australian quality reporting comparison since 2014 ASX 3rd Edition:...........................................9
Comparing between the quality of sustainability reporting of Wesfarmers and Westfield
Corporation:.....................................................................................................................................9
Comparison of improvement in quality of sustainability reporting in terms of identified aspect:10
Commenting in information disclosed in sustainability report to the G4 GRI guidelines:...........11
Part C:............................................................................................................................................13
Part D.............................................................................................................................................14
Reflective Journal of personal development..................................................................................14
References list:...............................................................................................................................17

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Part A:
Assessing and comparing sustainability report of SandFire for year 2015 and 2016 in
relation to G4 GRI Guidelines:
A standard disclosure, reporting principles and implementation manual is offered by GRI
sustainability reporting guidelines for preparing sustainability report of organizations. An
organization is offered two options according to the guideline for preparing sustainability report
that is comprehensive and core. An organization irrespective of size, location and sector can
apply any of the two options. An organization is required to disclose the sustainability
information in the aspects comprising of economic, social, environmental, social responsibility,
society and human rights (Boulouta and Pitelis 2014).
The sustainability report of Sandfire Resources NL for year 2016 is prepared in
accordance with the Core option of Global reporting Initiative G4 framework. Report is intended
towards stakeholder of organization. While the sustainability report of year 2015 has been
prepared in accordance with Global reporting Initiative G4 framework, however there has not
been specification of options for preparing such report (globalreporting.org 2017). In this
particular year sustainability report, it was acknowledged by organization that it is a part of
community and it should strive for generating positive outcome for environment and society. On
other hand, in year 2016, development of long-term sustainability strategy was the commitment
of organization.
Presentation of Sustainability report of Sandfire Resources NL for year 2016 is somewhat
different compared to previous year as the former year incorporates more components on
different aspects. Sustainability report of year 2016 has segregated different components as has

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included additional requirement as per the guidelines of GRI. There is a separate section of
sustainability at Sandfire, supply chain, operations, community, people and socio economic
contribution of organization where supply chain and people were not presented separately.
Interpreting the Sandfire’s Phase of sustainability:
The six phases of organizational sustainability includes rejection, non-responsiveness,
compliance, efficiency, strategic proactivity and sustaining corporation ideological commitment.
It is essential for organization to include the phases of sustainability in their sustainability report
because the society wants organization to be more transparent in their reporting process.
Efficiency phase helps organization in controlling cost and reducing the impact of their activities
environment.
Rejection- In this phase, an organization rejects all the sustainability pressures and only
profits matters to them along with display exploitative view of employees, nature and society.
Sandfire does not operate in this particular phase as they help in shaping positive outcomes for
people and society accompanies by embracing all the sustainability pressures.
Non-responsiveness- In this phase, an organization ignores environmental and
community issues and all the issues concerning sustainability. Cost associated with sustainability
are seen as unnecessary. Relating to this phase, it is said that sustainability is at the heart of
Sandfire resources. Considerable amount is invested by organization in area of sustainability. For
instance, Sandfire has adopted technologies of renewable energy in remote mine sites. Impact of
operation on environment is minimized by commitment to solar power plant. Optimizing the
management of land, water and waste is one of the considerable part of focus of organization
(Cheng et al. 2014). It can be said that Sandfire does not operate in non-responsiveness phase.

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Compliance- In this phase, organization mostly oppose tighter environmental regulation
policy and greater litigation risk is involved for meeting minimum standard attention.
Management of resources at Sandfire is done in accordance with statutory requirement of
environment regulation. It complies with all the environmental regulations in the area of its
operation and it aligns with the vision of business to establish as sustainable business.
Efficiency-Organization operating in this phase displays the awareness of practices of
sustainability and the main focus is to deliver cost benefits and focuses on efficiency. The
process of risk communication has been improved and the awareness of risk management has
been done by developing risk management video. Sandfire intends to create awareness about
aboriginal groups and the treatment and status of indigenous Australians. Various measures are
adopted to aware community about increased need to reduce environmental impact of their
activities (globalreporting.org 2017). Therefore, organization is currently in the efficiency phase
of sustainability.
Strategic productivity- In this phase, sustainability becomes the core business strategy
and sustainability initiatives taken by organization helps in long-term profitability of business.
The commitment of organization is to align strategy of business with sustainability in order to
develop long-term sustainability strategy by the end of year 2018. However, as depicted by the
sustainability report of year 2016, Sandfire has continuously improved their sustainability
performance and disclosure in the areas of community, business, and corporate governance,
areas of stakeholder reactions and management of environment. Hence, it can be said that
Sandfire is in the path of strategic productivity phase of sustainability.
Sustaining corporation ideological environment- In this particular phase, values of
sustainability are incorporated internally and there is active participation in creating social

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equity, human welfare, social, political and ecological renewal. Sandfire has made continuous
effort in improving environment management and some of the measures of improving
environment such as ecological resources are not internalized. Therefore, Sandfire does not have
sustainable corporation ideological environment.
Areas of improved sustainability performance:
At Sandfire, sustainability is based on delivering social, economic and environmental
benefits to stakeholders. In areas of activities and facilities, organization is committed to
responsibly manage the environment and goals have been adopted for managing and mitigating
impact of operation on environment. An environment management system is used by
organisation that is supported by management plans, policies, guidelines and standard work
practices. EMS align with the environment management standard that is ISO/AS14001:2004
(sandfire.com.au 2017). Such management system is subjected to review by internal department,
internal review process of organization and external review every two years. Reporting on
environment management operations is done by meeting statutory regulations.
Organizations demonstrating sustainability activities would be considered by Sandfire by
providing support via funds, promoting healthy lifestyle, arts and culture, supporting
disadvantageous sections of society. The safety performance of Sandfire has improved
consistently and health and safety of people is the first priority of organization. Strengthening the
safety culture is the main focus of Sandfire. There are many factors that has attributed to
improved sustainability performance in terms of safety and health of people at work. Sandfire
has been consistently focusing on verification of critical control and improvement of risk
assessment. In year 2017, there were no illness, serious disabling injuries and fatalities and there
has been consistent improvement of safety performance. Against a target of 5.0, total recordable

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injury frequency rate stood at 5.0 for the year ending 2016. There was improvement in loss rime
injury frequency rate and the rate in previous year that is 2016 stood at 0.7 as compared to 0.8
for the year ending 30th June, 2017 (sandfire.com.au 2017). Assurance reporting process was
continually improved that enabled monitoring of hazards, risks and critical control in better way.
An important contribution has been made to regional economies and local communities by
incorporating local business in supply chain and delivering solid financial return to shareholders.
A positive social economic contribution has been made in areas through community partnership
and investment that stood at $ 495000 and payment to suppliers and contractors stood at $ 272.5
(Di Giuli and Kostovetsky 2014). Sustainability report also incorporate target in relation to some
social aspect such as total recordable injury frequency rate.
A wide range of community based charities and organizations is contributed by Sandfire
and organization has joined as community partners in forces with shooting stars in year 2017.
The cost of role of organization including health, well-being activity cost and funding of
employment of a new shooting star program coordinator is assisted by such partner. In relation to
recognition of indigenous, employment and training. The jurisdiction are in which organization
operates has conducted survey over 75 Aboriginal heritage on the tenements of company. Land
access agreement has delivered benefits to the surrounding communities and member of native
Title claimant group. At Doolgunna project, numerous cross-culture work group have been held
by Sandfire. Organization has directly employed three people from aboriginal workforce for June
30 in year 2017. 5.7% of the total workforce represents people from aboriginal group
(sandfire.com.au 2017). Quality people have been attracted and retained in the organization and
it is ensured that all employees are treated with dignity, respect by recognizing the importance of
value.

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There has been increased use of copper in the business that has been used for meeting the
goal of reducing emission of carbon and objectives of meeting energy efficiency. A whole of
business approach is applied by Sandfire in all risk categories such as safety, health, governance,
environmental and social risk. Risk framework of organization is aligned with the international
standard of managing risk that is ISO standard 31000:2009.
The process of reporting has been additionally improved for enabling monitoring of risks,
critical control and hazards and in a better way. Organization has participated in carbon
disclosure project since year 2015 and Sandfire has become the finalist for “Best Climate
Disclosure By a New Australian Company”.
Commenting on user friendliness of sustainability report using GRI index:
The GRI content index of Sandfire Resources incorporates displaying of G4 indicators
and their description of separate pages. General standard disclosure of organization in their GRI
index involves structure of governance, external assurance and ethics and integrity concerning
ethics, principles, values, standard, code of ethics and code of conduct. There has not been
sufficient information on external assurance and the governance structure in displayed in the
annual report of organization. Code of conduct, code of ethics, standards, principles and values
are displayed in the area of Sandfire code of conduct and values. Some of specific standard
disclosures in the GRI content index of Sandfire involves criteria of economic, environmental,
social, human rights, society.
Human rights concern of organization was displayed in the sustainability report and the
action involved development of grievance mechanism procedures and open dialogue about
sustainability performance is enhanced and concerns of stakeholders are voiced by giving

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transparency and internal management. Regarding environmental, the aspect of biodiversity is
managed thorough the monitoring and minimizing the potential impact of operations on
biodiversity. Assessment of environment of suppliers does not take into account material issues.
Organization has not taken any effort to minimize the negative impact of supply chain on
environment. Data has not been collected from suppliers on the impact of environment. For the
material aspect of employees, the return to data work is not available. Remuneration data table
for men and women is displayed by organization. Data regarding labour practices negative
impact and percentage of new suppliers that were screened under current labour practices are not
available (Amran et al. 2014).
Sufficient information of material aspect of economic are displayed in sustainability
report that incorporates discussion of risk and opportunities related to climatic change,
management approach disclosure and sufficient disclosure of negative and positive economic
impact have been discussed. Regarding energy aspect of environment, scope 3 emissions are not
recorded and information has been displayed on energy consumption reduction inside and
outside organization and energy intensity (Dias et al. 2017).
Sustainability report of Sandfire does not provide concise disclosure on approach of
management items relating to environmental aspects that should be outlined. The assessment of
risk management procedures incorporating human rights are not described using the industry
guidance and practices. However, the disclosure of information in relating to appropriate
guidelines of sustainability is provided in the report. Users of sustainability report would find it
easy to locate any part of report that are relevant to particular guidelines. This can be explained
with the help of instance from the sustainability report of the current year. Planning of mine
closure is aligned with mine closure guidelines issued by Department of Western Australia of

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Mines and petroleum that would assist in addressing all the opportunities and issues of current
mine closure plan in 2021 (Filatotchev and Nakajima 2014). The sustainability of operations of
environment is managed by using environment management system that is supported by
guidelines, policies and practices of standard work. In order to ensure that transition of graduate
is done smoothly into business, organization aligns to professional development for graduate
guidelines.
Part B:
Australian quality reporting comparison since 2014 ASX 3rd Edition:
Comparing between the quality of sustainability reporting of Wesfarmers and Westfield
Corporation:
Wesfarmers is committed to respecting the biodiversity by adhering to relevant
construction, planning and building codes and several regulations.
The sustainability program of Westfield Corporation focuses on the performance of
environment along with the engagement of community in the sustainable operations of business.
Over the past several years through the sustainability programs, organization has increasingly
sought to better understand the impact of their business activities on social, economic and
environmental performance. In recent years, Westfield has begins to report externally and seek
external assurance on their sustainability performances through key performance indicators
across all the aspects. Currently, focus of Westfield on environment management is on usage of
water, CGH emission and waste in a GHG inventory. Organization has employed global best
practices in management of calculation, measurement and reporting of its GHG inventory
(Dhaliwal et al. 2014). Reviewing of methodologies and standard is done each year against any

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application of local reporting. In terms of health and safety aspect concerning well-being of
employees and communities as a whole, safety performance is a priority that has two indicator of
measurement such as independent contractors and safety performance of their employees.
There are various ways in which the activities of Wesfarmers impact the communities and they
have significant positive impact on Australian economy. Organization has made payment to its
suppliers along with wages and salaries to the employees. Reporting period in the current year
does not have incurred any significant fines for non-compliance and non-monetary sanctions
with environmental regulations and laws. Waste reduction helps in creating business and
environmental benefits to the divisions. Throughout the product life cycle, waste is delivered to
recycle. Sustainability of material issues of each division is done by adopting various
sustainability efforts such as launching awareness campaign about water usage and increasing
water management visibility. Organization participated in Forest survey and carbon disclosure
project that helps in improving their sustainability performance (Servaes and Tamayo 2013).
Wesfarmers and Westfield Corporation is engaged in the sustainability reporting as
against other countries. With regarding to Australian companies such as Westfield group, the
score is below 67% to 100% that has been achieved by most of companies in terms of economic
aspect. Westfield has achieved a score of 11%. That is significantly lower as against Wesframers
and other companies that have higher coverage percentage. In terms of environmental aspect,
Westfield has achieved lower percentage of 17% and the coverage is exceptionally lower as
compared to other companies. Wesfarmers has coverage percentage of 57% that is considerably
higher than Westfield Corporation. Again, Westfield has lowest coverage in social aspect with
percentage of 23%. In relation to social aspect, coverage of Australian companies is lying
between 10% to 98%. Westfield group has lowest coverage. In terms of social aspect, Westfield

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has lower coverage of 18% as against Wesfarmers. Coverage of Wesfarmers in terms of social
aspect is lying between 45% and 75% (Devinney et al. 2013). Therefore, the coverage of
Westfield Corporation in terms of all the aspect is significantly lower as against Wesfarmers.
The global reporting initiative has assessed the sustainability report of Wesfarmers
limited to B+ application level. On other hand, the assessment of sustainability reporting of
Westfield Corporation has been given C.
Comparison of improvement in quality of sustainability reporting in terms of identified
aspect:
Wesfarmers is proactively committed in managing the activities and endeavours to
improve their performance in sustainable way. Organization strives continuously improve their
performance by incorporating some of the principles relating to environment, social, community,
governance, people in their operations. Organization has made effort to reduce the intensity of
carbon in environment and thereby improving the resilience of business to climatic change. In
the areas of waste management, Wesfarmers strives to reduce the use of water and waste fill
management. Sourcing of suppliers is done in a peaceful way by incorporating ethical principles.
Workplace receives strong attention to make it safer and providing opportunities to employees to
develop their career and enhance the job performance (Mason and Simmons 2014).
Westfield Corporation on other hand had made several progress in their sustainability
reporting in terms of economic, social and environmental aspects. Organization is focused on
creating great experiences to their stakeholders by making enhancement in their capabilities sand
resources. They have incorporated several steps in their corporate sustainability reporting that
embeds sustainability factors such as economic, social and environment. In year 2016,