MBA402: Governance, Ethics & Sustainability - Assessment Report

This sustainability assessment report, prepared in accordance with GRI standards, analyzes a fictional company's performance across economic, environmental, and social dimensions. The economic assessment covers financial implications of climate change, incidents of corruption, and anti-competitive practices. The environmental analysis examines energy consumption, biodiversity impacts, and compliance with environmental regulations. The social component focuses on employee hires and turnover, discrimination incidents, and community engagement. The report identifies areas of both strength and weakness, providing insights into the company's sustainability performance and areas for improvement. Desklib provides a platform for students to access similar reports and study materials.

Running head: GOVERNANCE, ETHICS, AND SUSTAINABILITY
Governance, Ethics, and Sustainability

GOVERNANCE, ETHICS, AND SUSTAINABILITY
Table of Contents
A. Economic Sustainability........................................................................................................3
i) Disclosure 201-2 Financial Implications and Other Risks and Opportunities Due To
Climate Change......................................................................................................................3
ii) Disclosure 205-3 Confirmed Incidents of Corruption and Actions Taken........................4
iii) Disclosure 206-1 Legal Actions for Anti-Competitive Behavior, Anti-Trust, and
Monopoly Practices................................................................................................................4
B. Environmental Sustainability................................................................................................5
i) Disclosure 302-1 Energy Consumption within the Organisation.......................................5
ii) Disclosure 304-2 Significant Impacts of Activities, Products, and Services on
Biodiversity............................................................................................................................6
iii) Disclosure 307-1 Non-Compliance with Environmental Laws and Regulations.............6
C. Social Sustainability..............................................................................................................7
i) Disclosure 401-1 New Employee Hires and Employee Turnover......................................7
ii) Disclosure 406-1 Incidents of Discrimination and Corrective Actions Taken..................8
iii) Disclosure 413-1 Operations with Local Community Engagement, Impact Assessments,
and Development Programs...................................................................................................9
References................................................................................................................................11
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A. Economic Sustainability
i) Disclosure 201-2 Financial Implications and Other Risks and Opportunities Due To
Climate Change
There are both risks and opportunities that remain linked with the increasing incidences of
climate change. Its impacts can be witnessed in alterations of expenditure, operations, and
revenue. Based on the disclosure of GRI standards, the reporting requirements are divided
into five parts. The first part deals with the identification and classification of threat and
opportunity. Impact’s description is involved in the second part. The third part intends to
identify the financial implications before any sort of action is undertaken. Methods that can
be implemented to manage the opportunity or the threat are included in the fourth part. The
last part ensures the cost that is required to implement the appropriate action (GRI, 2018).
Firstly in the case, the threat that is posed towards the company is the bushfire whereas the
opportunity that is derived from the outcome of the climate change is that the company,
Timberwell Constructions is engaging itself in planning an external town firm. Both the
threats and opportunity involved in this case are regulatory as well as physical. Both time and
money are going to be affected by the changes that will take place in the occurrence of
bushfire. The case evaluated in the third part exhibits the company to invest $4 million in
order to implement the Local Environmental Plan (LEP) amendment. Moreover, according to
the Government of South Australia (2009), reducing and removing native vegetation can
prevent the occurrence of the bushfire. Thus, the amount that the company is required to pay
for the services provided by the town firm is $50,000.
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ii) Disclosure 205-3 Confirmed Incidents of Corruption and Actions Taken
The disclosure identifies five distinguishable parts that are required to be reported so that the
incidences can be evaluated on that basis (GRI, 2018a). Firstly, the total numbers of
corruption incidences of the company that have been found are three. All of the three
incidences signify political or legal corruption that is associated with engaging works that
inherit disadvantages for the company’s employees (Dimant, 2013). As per the second
reporting requirement, the confirmed incidents, which made the company dismiss its
employees is only one. Evaluation of the case signifies the fact that in accordance with the
third requirement of the disclosure, there is one incident in which the company has
terminated its partnerships contract. Specifically, Timberwell Constructions had a contract
with two external consultants and both their contracts were brought to an end by the
company. As per the disclosure’s fourth reporting requirement, the number of public legal
case that has been filed against the institution or its employees is one. The outcome of the
case witnessed that the company have suspended all the five alleged employees and
terminated the partnerships contracts with two separate external consultants.
iii) Disclosure 206-1 Legal Actions for Anti-Competitive Behavior, Anti-Trust, and
Monopoly Practices
There are specific two reporting requirements in disclosure 206-1. The first point requires an
identification of the number of legal actions against the company that is either pending or
completed on the basis of anti-competitive behavior and violations that are related to the
monopoly legislation and anti-trust. The second requirement requires assessment of the
company to evaluate the outcome of the legal action (GRI, 2018b).
Evaluation of the company’s case, it has been understood that there was a pending case in
which the company was sued for exhibiting anti-competitive behavior. The outcome of the
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case was supposed to be finalized in Federal Court in the next four months. On the basis of
the second reporting requirement, it has been witnessed that the company’s senior executives
prohibited the contractors and suppliers from involving with the new company. The
Australian Competition and Consumer Commission (ACCC) have filed a case reporting the
anticompetitive conduct of the company. There is no completed outcome of this legal action
because the case has been pending for attaining decision.
B. Environmental Sustainability
i) Disclosure 302-1 Energy Consumption within the Organisation
This disclosure signifies the reporting requirements of the energy consumption of the
institution so as to prepare a sustainability assessment report (GRI, 2018c). The first
requirement when implemented on Timberwell Constructions exhibited that its fuel
consumption from the non- renewable sources is 1.0 Gigajoule. The fuel consumption of the
company from the renewable sources is 0.5 Gigajoules. The third requirement identifies the
total electricity consumed by a specific company and Timberwell Constructions for its
efficient operations have consumed 2.0 Gigajoules. The energy consumption of the company
involved in the fifth requirement is divided into two factors, one identifying the fuel
consumed from renewable and non-renewable sources whereas the other is electricity. The
total fuel and electricity consumption of the company is 3.5 Gigajoules. The sixth
requirement demands for identification of the assumptions, methodologies, calculations, and
standards used. Assessment of the company’s report on the basis of the requirement exhibits
the fact that the calculation tool has been utilized to represent the energy consumption table,
which was prescribed by the Australian Department of Industry and Science.
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ii) Disclosure 304-2 Significant Impacts of Activities, Products, and Services on
Biodiversity
This disclosure has two significant reporting requirements. The first necessity requires an
identification of the nature that is associated with the indirect and direct impacts of the
company on the biodiversity (GRI, 2018d). Negative and positive impacts of the company on
some matters are to be referred to as the second point. Evaluation of the company report in
accordance with the provided requirement identified the fact that the company had cleared
grasslands that had resulted in the reduction of species. However, the company’s report when
assessed as per the second requirement exhibited effects on the ecological community. The
area which has been affected by the company is about 0.45 hectares of coastal grasslands.
Hence, it can be said that there is a scope of reversibility in this case as the company has been
asked by the Department of the Environment and Energy to implement a rehabilitation plan
that made the company pay about an amount of $440,000.
iii) Disclosure 307-1 Non-Compliance with Environmental Laws and Regulations
Considering this section of the disclosure, it is important to understand that the company is
actually following the GRI standards or not. Therefore, it is imperative for the company to
present its report on the basis of the requirements of this disclosure of non-compliance with
environmental laws and regulations (GRI, 2016). There are two basic needs that are involved
in the disclosure. The first requirement includes identification of the non-monetary sanctions
and fines that have been paid by the company on the basis of its non-compliance with
environmental regulations and laws. It is further divided into three parts. The first part
requires detection of the total value of the money that is being spent on fines. Recognition of
sum total of non-monetary sanctions is involved in the second part and the third part demands
detection of the cases that have been filed against the company on the basis of the dispute
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resolution techniques (GRI, 2018e). Furthermore, the second requirement demands, reporting
of a brief statement so that it can be assured that the company has not been recognized with
any kind of non-compliance with the environmental regulations (Shaffer, 2018).
The report presented by Timberwell Constructions, when assessed on the basis of the first
requirement reveals the fact that the total monetary value of the firm that is associated with
the fine is $4 million. Moreover, there were no such cases that were finalized or sorted by
implementing dispute resolution methods. As per the second requirement of the disclosure
and analysis of the company, it has been witnessed that there is no situation of non-
compliance exhibited by the company in this context. Moreover, according to Van der Oost,
Beyer & Vermeulen (2003), environmental risks should be averted properly as it can pose
huge threats towards proper functioning of the ecological system as well as in the business
operations. Irrespective of the fact that the company was not found guilty in this respect, the
above-mentioned aspect needs to be considered for a better future.
C. Social Sustainability
i) Disclosure 401-1 New Employee Hires and Employee Turnover
The reporting requirement that is involved in this disclosure is of two types. The first part
requires an identification of the total rate and number of employees that are hired during the
reporting period of the company in terms of region, age group, and gender. Recognition of
the rate and the total number of employee turnover in the company’s course period is
included essentially in the second part (GRI, 2018f). In this context, the company’s report
assessed on these two requirements has illustrated the point that the company has hired 12
new employees during the course of the reporting period. Moreover, the employee turnover
of the company on the basis of its report has presented the fact that the company has lost 17
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of its employees and that is the sole reason behind the company’s hiring new employees so
that work balance is maintained within the company (GRI, 2018f). Furthermore, the
employers of a company must understand the fact that maintaining a balanced work-place is
essential so that the operations of the company can actually be efficiently executed. The
enhanced rate of employee turnover can put a company and the employer into a problem
thereby posing threat to its long-term sustenance (Taitel, Haufle, Heck, Loeppke & Fetterolf,
2008).
ii) Disclosure 406-1 Incidents of Discrimination and Corrective Actions Taken
This disclosure consists of two distinctive parts. The total number of situations in which
incidents of discriminations took place is signified by the first requirement. The second
credential of the disclosure requires recognition of the status of the actions that had occurred
on the basis of four things. They are, incident explored by the company, implementation of
remediation plans’ results and lastly confirmation of the fact that the incident needs no focus
any longer (GRI, 2018g). Similarly, in the case of Timberwell Constructions, it has faced one
case of discrimination during its reporting period and thus it satisfies the first requirement of
the disclosure. The second reporting need and analysis of the company’s report has proved
that the incident of discrimination has been examined by the institution after being alleged by
Dennis McCabe. He was an employee of the company. The remediation plan that has been
implemented in this case is the renewal of anti-discrimination policy along with providence
of proper training to its employees. The company has abided by the orders of the Fair Work
Commission and implied all the necessary actions. After the implementation of the policy,
this issue was resolved to a certain extent. In this regard, Verloo (2006) stated that the
incidents of multi inequalities shown on the employees hamper the working environment as
well as the respect of the individual on whom the discrimination is exhibited by the other
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members. Hence, it is essential to understand the terms and conditions of the non-
discrimination act and implement it accordingly (Verloo, 2006).
iii) Disclosure 413-1 Operations with Local Community Engagement, Impact
Assessments, and Development Programs
This particular disclosure has one specific requirement, which involves the identification of
impact assessments, local community engagement and development programs. All of these
also require the utilization of some methods. They are “gender impact assessment and social
impact assessment on the basis of the participatory processes” (GRI, 2018h, 7). The second
factor involves “ongoing monitoring and environmental impact assessments” (GRI, 2018h,
7). Public disclosure to the assessments is included in the third part. Based on the
requirements of the local communities the programs that are held by some programs are to be
focused in the fourth part. The fifth need identifies stakeholder management plans. Processes
and consultation committees that involve the vulnerable groups are put forward in the sixth
part. The seventh and the eighth part involve recognition of work councils and formal
grievances of the local community (GRI, 2018h).
Understanding from the above points, an analysis of the company report has been done. It has
been understood that the company has performed social assessments with regards to the
needs of the local community for social housing. In the case of environmental assessment, the
company has complied with Local Environmental Plan (LEP) so that particular areas of
Stanwell Council can be identified as bushfire prone to avoid any kind of serious incidences.
Furthermore, the company is planning another site that can serve the interests of the local
people. For this, the organization body assigned to deal with the impact of the action is LEP.
In this context, it has been opined by Van Aalst, Cannon & Burton (2008) that, adaption to
continuous environmental changes requires the need for engagement of the local community
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so that their actions can resolve the enhanced issues to a large extent. Thus, increasing
awareness and involvement of the local community can actually minimize the risk assessment
to a greater level (Van Aalst, Cannon & Burton, 2008). Therefore, in the given case also the
issue of bushfire is required to be minimized so that no further damage can be caused. Hence,
the company has extended help to the local community to eliminate the increasing problem of
bushfire and climate change.
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References
Dimant, E., 2013, ‘The nature of corruption: an interdisciplinary perspective’, Economics, pp.
2-47.
Government of South Australia, 2009, ‘Reduce the impact of bushfire’, Department of Water,
Land and Biodiversity Conservation, pp. 4-22.
GRI, 2016, ‘Consolidated set of GRI sustainability reporting standards 2016’,
Globalreporting.org, pp. 004-416.
GRI, 2018, ‘GRI 201: Economic performance 2016’, Globalreporting.org, pp. 3-12.
GRI, 2018a, ‘GRI 205: Anti-corruption 2016’, Globalreporting.org, pp. 3-9.
GRI, 2018b, ‘GRI 206: Anti-competitive behavior 2016’, Globalreporting.org, pp. 3-6.
GRI, 2018c, ‘GRI 302: Energy 2016’, Globalreporting.org, pp. 3-12.
GRI, 2018d, ‘GRI 304: Biodiversity 2016’, Globalreporting.org , pp. 3-10.
GRI, 2018e, ‘GRI 307: Environmental compliance 2016’, Globalreporting.org, pp. 3-6.
Shaffer, G.L 2018, Creating the sustainable public library: The triple bottom line approach,
ABC-CLIO, California.
GRI, 2018f, ‘GRI 401: Employment 2016’, Globalreporting.org, pp. 3-9.
GRI, 2018g, ‘GRI 406: Non-discrimination 2016’, Globalreporting.org, pp. 3-6.
GRI, 2018h, ‘GRI 413: Local communities 2016’, Globalreporting.org, pp. 3-9.
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Taitel, M.S., Haufle, V., Heck, D., Loeppke, R. & Fetterolf, D., 2008, ‘ Incentives and other
factors associated with employee participation in health risk assessments’, Journal of
Occupational and Environmental Medicine, vol.50, no. 8, pp. 863-872.
Van Aalst, M.K., Cannon, T. & Burton, I., 2008, ‘Community level adaptation to climate
change: the potential role of participatory community risk assessment’, Global environmental
change, vol. 18, no. 1, pp. 165-179.
Van der Oost, R., Beyer, J& Vermeulen, N.P., 2003, ‘Fish bioaccumulation and biomarkers
in environmental risk assessment: A review’, Environmental toxicology and
pharmacology, vol. 13, no. 2, pp. 57-149.
Verloo, M., 2006, ‘Multiple inequalities, intersectionality and the European Union’,
European Journal of Women's Studies, vol. 13, no. 3, pp. 211-228.
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