MBA402 Governance: Sustainability Report for Property Millionaires

This report provides a comprehensive sustainability assessment of Property Millionaires based on the GRI (Global Reporting Initiative) sustainability reporting standards. It evaluates the company's performance across three key pillars: economic, environmental, and social sustainability. The economic sustainability assessment covers financial implications of climate change, incidents of corruption, and legal actions related to anti-competitive behavior. The environmental sustainability assessment examines energy consumption, impacts on biodiversity, and compliance with environmental laws. The social sustainability assessment focuses on employee hires and turnover, discrimination incidents, and community engagement. The report identifies shortcomings in Property Millionaires' sustainability practices and recommends corrective actions to align with GRI standards. Desklib offers a range of resources, including similar reports and past papers, to support students in their academic endeavors.

Running head: SUSTAINABILITY MANAGEMENT
Sustainability management
Name of the student
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Author note

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Executive summary
The aim of this report is to discuss about the GRI sustainability reporting standards of Property
Millionaires. In doing so, the business activities of Property Millionaires are being evaluated on
the basis of different disclosures of the GRI reporting standards. This report indentifies a range
of shortcomings for Property Millionaires in terms of the sustainability and based on that a few
recommended actions are also being stated. It is expected that effective implementation of the
corrective measures discussed in this report will help Property Millionaires to meet the standards
of the GRI reporting standards.

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Table of Contents
Introduction......................................................................................................................................3
Determination of the economic sustainability.................................................................................3
Disclosure 201-2..........................................................................................................................4
Disclosure 205-3..........................................................................................................................4
Disclosure 206-1..........................................................................................................................5
Determination of environmental sustainability...............................................................................6
Disclosure 302-1..........................................................................................................................6
Disclosure 304-2..........................................................................................................................7
Disclosure 307-1..........................................................................................................................7
Determination of the social sustainability.......................................................................................8
Disclosure 401-1..........................................................................................................................8
Disclosure 406-1..........................................................................................................................9
Disclosure 413-1..........................................................................................................................9
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

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Introduction
The current business scenario is highly competitive in nature and it is important for the
organizations to have the fair considerations of different ethical and sustainable issues in order to
align with different business standards. In this case, the GRI sustainability reporting standards
are being followed by majority of the business entities to have the overview about their issues
and responses from different perspectives. The major three pillars of the GRI sustainability
report are the economic, environmental and social. Based on these three sustainability standards,
different elements are being stated (Fonseca, McAllister and Fitzpatrick 2014). It is important for
the contemporary business organizations to align with these reporting standards and present the
overview to the external stakeholders. However, it should be noted that there are number of
ethical factors to be followed by the business organizations in order to align with the GRI
reporting standards. These ethical factors include the fair consideration of the management issues
in the organization (Fernandez-Feijoo, Romero and Ruiz 2014).
This report will discuss about the GRI sustainability reporting of the business operation
of Property Millionaires. In doing so, issues being faced by them in terms of different elements
will also be presented in this report along with their responses or recommended steps.
Determination of the economic sustainability
This pillar states about the economical considerations of the business operations and
related elements with it. All the finance related activities are being involved under this pillar. The
following sections will discuss about the financial elements of Property Millionaires.

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Disclosure 201-2
As stated in the case study, there are no instances of direct impact of the business
operations of Property Millionaires in climate change. This is due to the reason that they are
operating in the real estate consultancy sector, which is not having direct relationship with the
climatic changes. However, it should be noted that climatic changes may have indirect impact on
the financial implications of Property Millionaires (Hahn and Lulfs 2014). For instance, they are
operating in the real estate sector, which is highly vulnerable to the climate changes. There are
number of legislations being introduced for the real estate sector given their impact on the
climate by means of pollution. Moreover, emergence of the extreme weather conditions will also
pose threat to the growth of the real estate sector. Thus, reduction in the growth rate of the real
estate sector will reduce the investment opportunities for the investors and Property Millionaires
will lose the opportunities of consultancy (Boiral 2013). Thus, it can be concluded that according
to the disclosure 201-2, Property Millionaires will have indirect financial risks due to the climate
change.
Disclosure 205-3
This disclosure states about the incidents of corruption in the workplace and suitable
responses taken accordingly. In the case study, there are no confirmed cases of corruption being
identified and thus no evidence of actions being taken by them. However, an incident is being
identified, which may cause the emergence of ethical issues in the future or Property Millionaires
will face the charge of corruption (del Mar Alonso-Almeida, Llach and Marimon 2014). It is
identified that after the initial free consultancy seminar, sales executives push the customers to
buy for the next seminar at $10000. However, number of customers complained that they are not

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receiving the desired services even after subscribing the same. It is also stated by them that
consultants seems to lose interest on them and they are also not taking up the calls. Thus, it can
be considered as a corruption case due to the reason that paying money for a certain services and
not receiving the same will cause corruption charges from the customers. It should also be noted
that there are no specific actions being taken by the higher level managers regarding the same. It
is recommended that Property Millionaires should have proper communication channel with the
external stakeholders, which will ensure that the customers can escalate their issues directly to
the top level management (Siew 2015). Moreover, the upper level management should also have
tighter control on the business consultants in order to identify any deviations. It is also suggested
that performance evaluation of the consultants should be done based on the customer satisfaction
and not proving proper services should affect their growth and promotion.
Disclosure 206-1
There are number of anti-trust and monopoly practices being identified in the business
management of Property Millionaires but they are all from the perspective of the internal factors
of them. This is due to the reason that there not much information being stated about the
competitive business scenario of Property Millionaires in their operating market. It is identified
that antitrust issues of Property Millionaires include the lack of support from the managers to the
consultants (Junior, Best and Cotter 2014). It is identified from the case study that regional
managers are accused for leaving the business consultants alone in case of any complex
situations. This can be considered as the breaching of trust from the perspective of the
consultants. There are no steps being taken by the upper level management as of now. It is
suggested that training and development program for the regional managers should be initiated
and their skills and expertise should be enhanced to deal with the complex organizational

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situations. Moreover, Property Millionaires will have stated standards regarding the roles and
responsibilities of the regional managers and the potential actions to be taken if not met. This
will ensure that the higher level management of Property Millionaires will not face any legal
issues in taking steps against the regional managers in case of pre stated standards (Legendre and
Coderre 2013).
In terms of the monopoly practices, there are number of internal issues being identified
for Property Millionaires. One of the major issues is the development of the content of the
seminar without the consultation of the others in the organization. It is identified that seminar
content is being designed only by the senior management. Thus, the relationship between the
content of the seminar and expectations of the clients is different. In this case, the autocratic
leadership being possessed by them is the major responsible factor (Hahn and Kuhnen 2013).
Moreover, it is also identified that sales target being given to the business consultants is being
designed without the involvement of all the internal stakeholders. Thus, it is causing issues for
the consultants to achieve the given sales target. These factors can be considered as internal
monopoly practices (Boiral and Henri 2017). In this case also, there are no legal actions being
specified in the case study. Property Millionaires should legally set standards to be followed in
having the involvement of all the internal stakeholders in initiating decision making process.
Determination of environmental sustainability
This pillar states about the environmental related factors in the business operations. The
impact to and from the environmental related factors is being identified under this pillar.
Disclosure 302-1

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There is not specific information being given regarding the energy consumption patterns
by Property Millionaires. However, in terms of environmental sustainability also, there are no
information available. Hence, it can be concluded that sustainability is not maintained by
Property Millionaires in terms of their energy consumption also. As discussed earlier, they are
operating in the consultancy sector and thus the energy involved or required in manufacturing
process is not applicable for them (Alazzani and Wan-Hussin 2013). However, with the rapid
increase in their business operation of Property Millionaires, lack of sustainable approach of
energy consumption will pose huge threat in their profitability. It is recommended that with
growth in their business, Property Millionaires should initiate the use of renewable sources of
energy and getting their buildings LEED certified.
Disclosure 304-2
The services being offered by Property Millionaires are not having direct impact on the
biodiversity due to the reason that they are offering consultancy services. Thus, this disclosure of
is not applicable for them. Moreover, as there will be not issues related to their services on the
biodiversity, no actions should be designated further.
Disclosure 307-1
As discussed earlier, sustainability is not being maintained by Property Millionaires in
their business operation. Thus, it can be concluded that they are non-compatible with the
environmental laws and regulations. Moreover, in the case study, there is also no mention of any
environmental standards being followed by Property Millionaires. However, it is important for
Property Millionaires to comply with the environmental laws and regulations to ensure their
business sustainability (Adams, Muir and Hoque 2014). It should be noted that with the rapid

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introduction of the stringent environmental regulations, non-compliance will pose challenges for
Property Millionaires in managing their business in the long term. Property Millionaires will
comply with the Australia’s national environment law to regulate their direct and indirect impact
on the environment along with increasing the business sustainability in the long term. The entire
business management will also be designed in accordance to the environmental standards.
Determination of the social sustainability
This pillar states about the factors related to the social aspects of the business and thus
includes employees and other stakeholders.
Disclosure 401-1
In terms of employee hires and turnover, there are number of issues being identified. One
of the major issues identified is the dilution of the criterions and standards being maintained by
Property Millionaires in the initial stage by Property Millionaires. It is identified that with the
growth in their business, demand for more consultants got increased and this forced them to
lower their employment standards (Aktas, Kayalidere and Kargin 2013). It is also identified that
there are number of inexperienced employees inducted onboard. Even though it is meeting the
need for more employees in short time for Property Millionaires but it is also reducing the
loyalty rate among them. This is due to the reason that employees with having low skills and
expertise are not getting to deal with the challenges and they tend to leave the company. This is
leading to the increase in the employee turnover rate for Property Millionaires. On the other
hand, the ineffective mechanism of determining the needs of the employees along with giving
them sale target without determining their challenges is also contributing in increasing the rate of
employee turnover (James 2013). It is important for Property Millionaires to have the effective

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system for employee management including the recruitment and selection policies. This will
ensure that right employees will be selected for the right job.
Disclosure 406-1
There are no incidents of discrimination being identified for Property Millionaires.
However, autocratic approach of managing the employees can be considered as a discriminatory
act. This is due to the reason that lower level employees are being given no or less preferences in
the decision making process. They are not involved in deciding the sales target and issues with
customer management. Thus, the lower level employees are facing the discrimination in the
decision making process (Lozano, Nummert and Ceulemans 2016). No corrective actions are
initiated and thus it is recommended that engagement and involvement of the employees should
be increased in the internal management. This will help to have consensus in the decision making
process for Property Millionaires with having the probability of lower number of issues.
Disclosure 413-1
There are no social initiatives being taken by Property Millionaires in their business
operation. Thus, there are no mention of community engagement and development programs in
the case study. However, it should be noted that they are small scale entity and thus it will be
challenging for them to initiate the socially responsible activities (Rahdari and Rostamy 2015).
Considering the fact that their business is increasing rapidly, social development programs can
be initiated in the future.

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Conclusion
Thus it can be concluded that based on the GRI reporting standards, there are limitations
for Property Millionaires being identified in this report. It is seen that being a small scale firm,
Property Millionaires is lacking in different areas of the reporting standards. On the other hand, a
few corrective measures are also being discussed in this report, which will further help in the
adhering to the GRI sustainability standards. This report concludes that Property Millionaires is
mainly lacking in terms of their environmental sustainability and they should have improved
process or mechanism for developing their environmental sustainability and gain in the long
term.

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Reference
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pp.113-125.
Alazzani, A. and Wan-Hussin, W.N., 2013. Global Reporting Initiative's environmental
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Boiral, O. and Henri, J.F., 2017. Is sustainability performance comparable? A study of GRI
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Boiral, O., 2013. Sustainability reports as simulacra? A counter-account of A and A+ GRI
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del Mar Alonso‐Almeida, M., Llach, J. and Marimon, F., 2014. A closer look at the ‘Global
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Fernandez-Feijoo, B., Romero, S. and Ruiz, S., 2014. Effect of stakeholders’ pressure on
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ethics, 122(1), pp.53-63.