MBA402 - Sustainability Report: Governance, Ethics, Timberwell

This report provides a comprehensive sustainability assessment of Timberwell Constructions based on the GRI (Global Reporting Initiative) standards. It covers economic sustainability, addressing financial risks and opportunities related to climate change, corruption incidents, and anti-competitive practices. The report also examines environmental sustainability, focusing on energy consumption, biodiversity impacts, and compliance with environmental regulations, highlighting a fine for clearing endangered grasslands. Furthermore, it assesses social sustainability, including new employee hires, employee turnover, workplace discrimination, and community engagement initiatives. The analysis uses the provided case study to illustrate Timberwell's performance and areas for improvement across these key sustainability dimensions. Desklib offers a platform for students to explore similar solved assignments and past papers.

Running head: SUSTAINABILITY REPORT
Sustainability Report
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
The main purpose of this assignment is to analyze the case study as given in the assignment. The
report will be based on the GRI Standard on sustainability. The report will be focusing on the
Economic Sustainability standard 200, Environmental Sustainability Standard 300 and Social
Sustainability Standard 400. The report will be prepared on the basis of case study as provided in
the assignment.

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Table of Contents
Introduction......................................................................................................................................3
A. Economic Sustainability.......................................................................................................3
i. Disclosure 201-2...................................................................................................................3
ii. Disclosure 205-3...................................................................................................................4
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.............................................................................................................8
i. Disclosure 401-1...................................................................................................................8
ii. Disclosure 406-1...................................................................................................................8
iii. Disclosure 413-1...............................................................................................................9
Reference.......................................................................................................................................10

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Introduction
The report deals with the standard which have been introduced in order to ensure that
sustainability is maintained. GRI standards are the first global sustainability reporting standards
introduced. The main purpose of the standard is to report on the sustainability based on best
practices of economical, environmental and social benefits (Marimon et al. 2012). With the
introduction of the new standards on sustainability, it is expected to bring about improvement in
the overall reporting practices (Planken 2013).
A. Economic Sustainability
i. Disclosure 201-2
As per GRI Standard, an organization shall report on the following information which are
relates to different risks which are posed by climatic changes and such risks have the
potential to impact the operations, expenditures and revenue of the organization which
includes:
 Description of risks or opportunities and classification as either physical, regulatory
 The company must report on the impacts of the risks or opportunities which affect the
business.
 Financial implications of the risks or opportunities before actions are taken.
 The methods which are used to manage risks or opportunities.
 The costs which are related with the actions taken to manage the risks or opportunities.
The company also needs to report on the plans and time line in which the management
plans to develop a system to measure financial implications and costs, if such a cost or
implications system is not present (Toppinen et al. 2012).

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As per the case study of Timberwell, due to the warming effect of the climate and
increased risk of bushfire the company has to develop Local Environmental Plan (LEP). The
company needs rezone specific areas as bushfire prone zone. The company needs to
incorporate measures such as larger distance between buildings and also large boundaries and
the use of fire retardant building materials.
ii. Disclosure 205-3
GRI Standard deals with the topic Anti-corruption and their disclosure requirements in
the organization. As per the standard the company needs to include the following points in
the disclosure of the company:
 The total number and nature of confirmed incidents of corruption
 Total number of incidents where against guilty employees disciplinary measures were
taken or where they were dismissed.
 Total number of incidents where contracts with business partners were terminated due to
activities which are related to corruption.
 Public legal cases which the company is facing regarding corruption charges brought
against employees and also includes results or outcomes of the cases (Fernandez-Feijoo,
Romero and Ruiz 2014).
As per the case study given in the assignment about Timberwell Construction, the
employee Dennis complained to the State Corruption Commission about a public corruption
scandal where five Timberwell Construction and two partners offered brides to project
officers in order to get development projects for the company. The disciplinary actions which
was adopted by the company included suspension of the five employee who were involved in
the corruption charges. The employee were suspended without pay while the company

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awaited the pending results of the charges as per the State Corruption Commission. The
company also terminated the contracts which it had with the two external consultants or
partners.
iii. Disclosure 206-1
This standard deal with the legal actions due to anti-competitive behavior, anti-trust and
monopolistic practices (Fonseca, McAllister and Fitzpatrick 2014). The following disclosures
which are required by the standard are stated below:
 Number of legal actions which are pending or completed where the company has been
identified as anti-competitive or affecting anti-trust or in any way monopolistic in nature.
 The major outcomes which has arrived on legal cases including the measures suggested
and decisions taken.
As per the case study, Dennis complained to a number of Governmental organizations
that the company Timberwell Constructions were engaged in anti-competitive activities. The
company was accused of misusing its market power and engaging in exclusive dealings. As
per Australian Competition and Consumer Commission (ACCC), the company had engaged
in activities which could prevent a new entrant from entering the market and thus reduce the
overall competition in the market. The case was filed in a federal court and the hearing will
be taking place in four months period.

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B. Environmental Sustainability
i. Disclosure 302-1
The standard deals with the energy consumption within the organization (Junior, Best and
Cotter 2014). As per the standard a company needs to the following disclosures as per this
standard:
 The total fuel consumption in the organization from non-renewable sources and including
which type of fuel is used.
 The total fuel consumptions in the organization from renewable sources of energy.
 Total energy consumption in the organization
 Standards. Assumptions and methodology or calculation tools used for the computation
or measuring process.
 The various source of conversion factors.
As per the case study of Timberwell, a media release shows that the company is an
energy efficient organization and the company keeps energy consumption from non-
renewable sources of energy to minimum utilization. The media release also states that
Timberwell has implemented fuel consumption system which utilizes renewable sources of
energy to at least 50% within the next 3 years.
ii. Disclosure 304-2
The standards deals with significant impacts of activities, products and services on
biodiversity. As per the standard, the organization must report on the following information:

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 Nature of impacts on biodiversity which may be direct or indirect which can be in
relation to construction, pollution, introduction of pests or pathogens, habitat conversion
and other similar factors.
 Significant positive and negative impacts in relation to species affected, extent of areas
affected, duration of impacts and reversibility or irreversibility of the impacts.
As per the case study, Timberwell Construction in order to depict that the company is
good corporate citizen. An environmental impact assessment was conducted on the
company’s Otford Park development site where it was discovered that the site was populated
with a rare species of wallum sedge frog. If the site is used for the construction purposes then
it would lead to the disruption of the habitat of frogs. Therefore in order to counter this
Timberwell Construction along with other environmental organizations is trying tot develop
strategies which will develop the area as well as conserve the habitat of frogs.
iii. Disclosure 307-1
The standard deals with the non-compliance with environmental laws and regulations. As
per the standard the following disclosures are required which are given below:
 The company should report significant fines and non-monetary sanctions in relation to
environmental laws and regulations (Wilburn and Wilburn 2013).
 If the organization is not in compliance with environmental laws and regulations, the
same should be reported.
As per the case study, Dennis an employee of Timberwell Construction lodged a
complaint with Department of Environment and Energy. Due to this Timberwell company
was fined 4 200000 as the company had cleared around 0.45 hectares of critically endangered

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coastal grasslands. Additionally, the company was ordered to formulate a strategic plan to
conserve the natural vegetation of the surrounding area. Moreover, the company was required
to incorporate a rehabilitation plan for the area cleared which will cost the company at least
$440000.
C. Social Sustainability
i. Disclosure 401-1
The standard deals with new employee hire and employee turnover. As per the standard
the following disclosures are required by the organization:
 The total number and rate of new employees which are hired during the period on the
basis of age group, gender and region.
 The company also needs to report on the total number and rate of employee turnover
which has taken place during the year on the basis age, gender and region (Alonso‐
Almeida, Llach and Marimon 2014).
As per the case study given, Timberwell Constructions has 58 male staffs which are from
the region where the company operates. The company has been facing employee turnover
issues where 17 employees of the company left. The company in order to counter this hired
12 new employees and also incorporated a strategic plan to retain the existing employees of
the company which included higher worker’s pay rates, a monthly roster to allow a day off to
workers on a systematic basis.
ii. Disclosure 406-1
The standard deals with non-discrimination in work place. The company should include
the following disclosures in relation to this standard:

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 The company should report any discrimination occurrence on any grounds at workplace
 The remedial actions which was taken by the management for discrimination (Epstein
and Buhovac 2014).
As per the case study, Dennis an employee of Timberwell Construction has filed a
complaint with Fair Work Commission that he was harass at workplace. As per Dennis, he
was discriminated on the basis of his age as he was the only one above 50 years of age.
Timberwell Constructions were ordered by the Commission to pay a compensation of $ 4400
to Dennis and also incorporate anti-discrimination policies and provide anti-discrimination
training to the employees to prevent such a situation from occurring again.
iii. Disclosure 413-1
The standard deals with operations with local community engagement, impact assessment
and development programs (Prno and Slocombe 2012). The following disclosures are
required to be made by the company under this standard:
 The impact of the activities of the business on the local community as a whole whether it
is positive or negative in nature.
 Measures taken by the organization in case such impacts are negative in nature.
As per the case study, Timberwell Construction is trying to prove to the society that the
company is a good corporate citizen for which it has engaged in expenses which will develop
local communities and also proposed development plans for residential areas. The activities
include Environmental Impact Assessment, local resident meetings and local community
development programs which includes affordable housing solutions.

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Reference
Alonso‐Almeida, M., Llach, J. and Marimon, F., 2014. A closer look at the ‘Global Reporting
Initiative’sustainability reporting as a tool to implement environmental and social policies: A
worldwide sector analysis. Corporate Social Responsibility and Environmental
Management, 21(6), pp.318-335.
Epstein, M.J. and Buhovac, A.R., 2014. Making sustainability work: Best practices in managing
and measuring corporate social, environmental, and economic impacts. Berrett-Koehler
Publishers.
Fernandez-Feijoo, B., Romero, S. and Ruiz, S., 2014. Commitment to corporate social
responsibility measured through global reporting initiative reporting: Factors affecting the
behavior of companies. Journal of Cleaner Production, 81, pp.244-254.
Fonseca, A., McAllister, M.L. and Fitzpatrick, P., 2014. Sustainability reporting among mining
corporations: a constructive critique of the GRI approach. Journal of Cleaner Production, 84,
pp.70-83.
Junior, R.M., Best, P.J. and Cotter, J., 2014. Sustainability reporting and assurance: A historical
analysis on a world-wide phenomenon. Journal of Business Ethics, 120(1), pp.1-11.
Marimon, F., del Mar Alonso-Almeida, M., del Pilar Rodríguez, M. and Alejandro, K.A.C.,
2012. The worldwide diffusion of the global reporting initiative: what is the point?. Journal of
Cleaner Production, 33, pp.132-144.
Planken, B., 2013. Global Reporting Initiative. In Encyclopedia of Corporate Social
Responsibility (pp. 1254-1256). Springer, Berlin, Heidelberg.

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Prno, J. and Slocombe, D.S., 2012. Exploring the origins of ‘social license to operate’in the
mining sector: Perspectives from governance and sustainability theories. Resources
Policy, 37(3), pp.346-357.
Toppinen, A., Li, N., Tuppura, A. and Xiong, Y., 2012. Corporate responsibility and strategic
groups in the forest‐based industry: Exploratory analysis based on the Global Reporting Initiative
(GRI) framework. Corporate Social Responsibility and Environmental Management, 19(4),
pp.191-205.
Wilburn, K. and Wilburn, R., 2013. Using global reporting initiative indicators for CSR
programs. Journal of Global responsibility, 4(1), pp.62-75.