Sustainability Report: Governance, Ethics, and Finnegan Construction

This report provides a sustainability assessment of Finnegan Construction, a residential development company, based on the GRI (Global Reporting Initiative) standards. The assessment covers three key areas: economic, environmental, and social sustainability. The economic analysis examines financial implications of climate change, confirmed incidents of corruption, and legal actions related to anti-competitive behavior. The environmental analysis focuses on energy consumption, impacts on biodiversity, and non-compliance with environmental regulations. The social sustainability section addresses employee turnover, discrimination cases, and community engagement initiatives. The report highlights specific disclosures within each area, such as energy consumption figures, corruption incidents, and actions taken to address environmental violations. The analysis reveals areas of concern, including corruption allegations, environmental fines, and employee turnover, while also acknowledging the company's efforts in community engagement and biodiversity management. The report concludes with recommendations for Finnegan Construction to improve its sustainability performance and align with GRI standards.

Running head: GOVERNANCE, ETHICS AND SUSTAINABILITY
Governance, Ethics and Sustainability
Name of the Student:
Name of the University:
Author note:

1GOVERNANCE, ETHICS AND SUSTAINABILITY
Table of Contents
1. Introduction.........................................................................................................................1
2. Discussion...........................................................................................................................1
A. Economic Sustainability of Finnegan Construction........................................................1
a) Disclosure 201-2..........................................................................................................1
b) Disclosure 205-3..........................................................................................................2
c) Disclosure 206- 1.........................................................................................................3
B. Environmental Sustainability of Finnegan Construction................................................3
a) Disclosure 302-1..........................................................................................................3
b) Disclosure 304-2..........................................................................................................4
c) Disclosure 307-1..........................................................................................................4
C. Social Sustainability of Finnegan Construction..............................................................5
a) Disclosure 401-1..........................................................................................................5
b) Disclosure 406- 1.........................................................................................................5
c) Disclosure 413-1..........................................................................................................6
3. Conclusion..........................................................................................................................7
4. References:.........................................................................................................................7

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1. Introduction
Every organisation wants to ensure long term growth and development of their
businesses. In order to ensure the same, it is very important for the modern organisations to
play sustainably in the business market by means of having sustainable practices and
activities in place. According to Dhahri and Omri (2018), sustainable practice is the key to
sustainable business. It is to mention that economic, environmental and social sustainability
are the three pillars in this regard that each and every organisation needs to consider in their
business processes to ensure that all their goals and objectives are met. This paper shall
elaborate on providing a brief assessment of the sustainability practices of the case study
organisation- Finnegan Constructions, a residential development company located in the
Stanwell Council district. The paper shall consider the consolidate sets of the GRI (Global
Reporting Initiative) standards of sustainability reporting.
2. Discussion
A. Economic Sustainability of Finnegan Construction
a) Disclosure 201-2
This disclosure surrounds around the financial implications and the other opportunities
and risks associated with the change in climate (Feyen et al. 2020). It is to mention that in
order to manage its economic sustainability issues; Finnegan Construction uses this approach
of continuous improvement. The approach of the company towards the economic
sustainability is greatly integrated in its important business activities as well as its strategies.
With the same, the given case study has provided a clear view on the fact that the firm is
focused on creating sustainable value for all its involved shareholders and stakeholders.
However, the company has faced certain risks but still have certain opportunities in terms of

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economic sustainability. Finnegan was fined for its business operation that led to endangered
ecological coastal grasslands. For its business purpose, the company cleared up a significant
area of land and destroyed the surrounding flora and fauna. With the same, Finnegan
Constructions also has faced certain financial implications by Stanwell Council in the
proposed amendments to its Local Environmental Plan (LEP) (Moses 2015). It is to mention
that Stanwell council has rezoned certain areas of land in the district as bushfire prone
because of the alarming influence of the climatic change and any type of development in the
areas need to meet high level of bushfire safety. Finnegan Constructions complies with the
LEP and the economic fallout for it in the implementation or following up of the set
requirements is 4 million dollars. At a cost of 50K dollars, Finnegan Constructions is engaged
in an external town planning and is also focused at reducing the LEP requirements costs.
b) Disclosure 205-3
This disclosure surrounds around the confirmed incidents of corruptions in the
organisations and the actions that are taken on the same (Alaraji and Aljuhishi 2020). The
given case study has provided an insight into the corruption activities within Finnegan
Constructions. There are many complaints from the part of the employees at Finnegan that
are put forth to the State Corruption Commission on corruption. A total of five employees
and two business partners of Finnegan Construction were involved in public corruption cases.
However, it is also to note that the company has taken severe actions against these seven
stakeholders by means of suspending the involved employees without pay and terminating its
partnership with the involved business partners. Today, Finnegan Constructions no longer
collaborates or involves with the ones who are unethical. It is strongly focused on the
development of ethical work relationships with its stakeholders and at the same time, it has
also taken strong actions to deal with the seven stakeholders who were accused of doing
corrupt activities to ensure ethical business practices are in place.

4GOVERNANCE, ETHICS AND SUSTAINABILITY
c) Disclosure 206- 1
This disclosure surrounds around the legal actions in terms of the anti-trust, anti-
competitive behaviour and the other different monopoly activities in the organisations
(Anugerah et al. 2020). It is evident from the case study that Finnegan Construction has
undergone several legal and regulatory actions during its business operation. ACCC
(Australian Competition and Consumer Commission) has launched a case against the
company at Federal Court where it is accused of an anti-competitive conduct. ACCC got to
know that the local builders of the city are planning to start a competing development
organisation and the top management of the firm has threatened the suppliers and the
contractors to not get involved in the new development firm or else Finnegan would reduce
or withdraw their business. With the same, Bellantuono, an Australian company has filed a
similar case against it at Federal Court where Finnegan Construction is accused of misusing
its market power. Finnegan Construction was also accused of it in an intention of not
allowing the new market entrants or competitors in the market within the district with an aim
of reducing the market competition.
B. Environmental Sustainability of Finnegan Construction
a) Disclosure 302-1
This disclosure surrounds around the total amount of energy consumption of an
organisation (Miqdad et al. 2020). Finnegan Construction has undertaken a system approach
towards environmental sustainability. The case study reveals that the company reviews its
actions as well as its impact on the environment. There is present a table that gives a brief on
the company’s total energy consumption. It depicts that the total fuel consumption of the
company from its non-renewable sources is 1.0 Gigajoules, the fuel consumption from
renewable sources is 0.5 Gigajoules and the total electricity consumption of the company is

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2.0 Gigajoules. This depicts that Finnegan Construction makes use of proper tools for
calculating the same that is suggested by the Australian Department of Science and Industry.
b) Disclosure 304-2
This disclosure surrounds around the impacts of the different products, services and
activities of businesses on biodiversity. There is a site of Finnegan Construction at Ofrord
Park. Majority of the site is filled with wallum sedge frogs. The firm has proposed a
development that would provide site inconsistency with the survival of the wallum sedge
frogs. It is also to mention that the company is working with the Stanwell Council effectively
and also is engaged with other environmental groups in the district for the development of a
successful and effective strategy to manage the proposed development of the Park as well as
the conservation of the frogs that would otherwise, go rare or endangered. The case study
also sheds light on the fact that Finnegan Construction is undertaking several actions for the
conservation and management of the land and the other natural resources through having
conservation and biodiversity management plan in the place. It also undertakes EIA
(Environmental Impact Assessment) to gain an insight about its efforts towards conserving
the Otford Park and the wallum sedge frogs.
c) Disclosure 307-1
This disclosure surrounds around the issues of non-compliance with the environmental
regulations and laws. It is to note that Finnegan Construction has been fined for clearing a
massive part of land (about 0.45 hectares). It had to give 2lakh dollars for the same as the
land was a part of endangered ecological community coastal grasslands. The company was
also ordered to ensure regular review of its plan on vegetation management and at the same
time, to increase its program of audit for the contractors and to ensure proper implementation
of an effective and succinct plan of rehabilitation for 4.4 lakh dollars. The company is taking

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an engagement and identification process with all its stakeholders and this is helping it in
gaining a good understanding of the vulnerabilities and requirements of the local
communities. Finnegan Construction is undertaking several actions for the conservation and
management of the land and the other natural resources through having conservation
management plan in the place. Furthermore, it is also to mention that Finnegan Construction
also made use of different types of mechanisms for resolving conflicts and for ensuring
proper compliance.
C. Social Sustainability of Finnegan Construction
a) Disclosure 401-1
This disclosure surrounds around the issues of hiring of new employees and their turnover
in the business organisations. It is to note that according to Bennett, James and Klinkers
(2017), social sustainability is the key element that helps a firm to achieve holistic
sustainability. From the case study, it is clear that Finnegan Construction uses an approach
for management corporate responsibility and to meet its goal of social sustainability. There
are 58 males’ staffs of Finnegan Construction who have different trades and professions with
highly competitive market and this is further leading to new hiring and employee turnover.
The company has employed 12 new employees but 17 have left the organisation to start their
own business or to join its rivalry companies. Where 20.6% is the proportion of new joining,
29.3% constitute employee turnover.
b) Disclosure 406- 1
This disclosure surrounds around the different cases of discrimination in the workplaces
and the corrective actions that are taken to solve the same (Dhooge 2014). Finnegan
Constructions has been involved in discriminatory practices. A 50 years old employee of
Finnegan Construction has complained that he was a target of humiliation and age-based

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jokes from the other employees in the organisation. The firm had to compensate the
employee for this and was also ordered to take active actions to ensure that such things never
repeat in place. The company, as a response to the case, has updates its policy of anti-
discrimination and has also implemented anti-discrimination training for the entire employee
so that it can avoid these things in the future.
c) Disclosure 413-1
This disclosure surrounds around the different operations within the local community
engagement, the effect assessments and the different developmental programs. It is to
mention in this regard have claimed that the activities a firm and its present infrastructure are
the key elements that lead the company towards having a social, economic, cultural and
environmental impact on the surrounding local communities (Breyer et al. 2017). It is a
firm’s responsibility to take actions and ensure that there is reduction in the negative results
compared to the positive one on the community. From the case study it has been identified
that Finnegan Construction have a long range of initiatives and programs that are aimed at
improving community engagement and community participation along with the development
and initiative programs and assessment of the impacts. Finnegan Constructions engage with
the local community development programs, which are based on the demand and requirement
of the community for affordable social housing. Furthermore, it is also worth noting that
Finnegan Construction is also working with the Stanwell Council and is complying with the
amendments on the LEP. The company is taking an engagement and identification process
with all its stakeholders and this is helping it in gaining a good understanding of the
requirements and needs of the local people.

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3. Conclusion
From the above discussion on the sustainability assessment of Finnegan Construction
it is to conclude that the performance of the company is deteriorating in terms of the profit
that it is generating and the rate of employee turnover in the organisation. However, rest of
the things are in line with the development and growth. It has been identified that these
deterioration is due to the incompliance of the company with the standards of sustainability
reporting that should always be according to the GRI Standards. The case study also reveals
the fact that company has been engaged in many corruptive practices, workplace
discrimination activities, anti-monopolist actions and certain anti-competitive actions. All
these together have influence negatively the operations and reputation of the company in the
business market. Hence, it is to recommend for Finnegan Construction to have a proper
disclosure, which would be in line with all the principles of GRI. The company should make
some serious and strict adherence for complying with the different sustainability
requirements and standards.

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4. References:
Alaraji, F.A.A.S. and Aljuhishi, B.I.M., 2020. The Scope of Applicability of the Standard of
the Global Reporting Initiative (GRI) for Sustainability in the Iraqi's Environment. Quality-
Access to Success, 21(174).
Anugerah, E.G., Miqdad, M., Sulistiyo, A.B.S.B. and Wardhaningrum, O.A., 2020. An
assessment on faculty sustainability reporting guideline (FRSP). International Journal of
Research in Business and Social Science (2147-4478), 9(1), pp.94-105.
Bennett, M., James, P. and Klinkers, L., 2017. Key themes in environmental, social and
sustainability performance evaluation and reporting. In Sustainable Measures (pp. 29-74).
Routledge.
Breyer, S.G., Stewart, R.B., Sunstein, C.R., Vermeule, A. and Herz, M., 2017. Administrative
law and regulatory policy: problems, text, and cases. Wolters Kluwer Law & Business.
Dhahri, S. and Omri, A., 2018. Entrepreneurship contribution to the three pillars of
sustainable development: What does the evidence really say?. World Development, 106,
pp.64-77.
Dhooge, L.J., 2014. The first amendment and disclosure regulations: Compelled speech or
corporate opportunism. Am. Bus. LJ, 51, p.599.
Feyen, E.H., Utz, R.J., Zuccardi Huertas, I.E., Bogdan, O. and Moon, J., 2020. Macro-
Financial Aspects of Climate Change. World Bank Policy Research Working Paper, (9109).
Miqdad, M., Anugerah, E.G., Sulistiyo, A.B. and Wardhaningrum, O.A., 2020. An
assessment on faculty sustainability reporting guideline (FRSP): Indonesia's sustainable
development goals for higher education. International Journal of Research in Business and
Social Science, 9(1), pp.94-105.

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Moses, R., 2015. (15-058) Ryan v The Minister for Planning [2015] NSWLEC
88. Environmental Law Reporter, 34(15-053/15-060), p.8.