MBA402 Governance: Timberwall Constructions Sustainability Report

This sustainability report assesses Timberwall Constructions based on the GRI Sustainability Reporting Standards 2016, focusing on economic, environmental, and social sustainability. The economic assessment covers financial implications of climate change, corruption incidents, and le...Read More

Running head: SUSTAINABILITY REPORT
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Name of the Student
Name of the University
Author note

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Situation overview:
Organizational sustainability is the process to create a sustainable environment, which
will lead to productive outcomes of the organization. Sustainable development helps in effective
functioning of the organization and builds relationship with the key stakeholders like customers,
shareholders, employees etc (Benn, Edwards and Williams 2014). The organization can face
some situation when the business dealings are not suitable and justified and which can create
issue for the employees and the company. Timberwall construction is an Australian organization
that deals with construction business. The organization had 58 employees and out of which 17
employees have left. The employees left for working for their rival companies and some have
left to establish their own business (Gibbs et al. 2014). The employee retention is low in the
market and this has happened due to the lack of fair work culture. There have been many
allegations from the employees who have left the organization and this has forced government to
take some measure that will make the situation better. Anti-competitive conducts, Anti-
discrimination policies, environment sustainability issues are being highlighted (Bonadio 2013).
This report will explain the general disclosure and the management approach that the
organization can undertake. The policies of the organization are revised and the updated rules
will strengthen the environmental, economical and the social aspects of the business
organization. If the new policies are formulated and implemented properly, then Timberwall
construction, then the Timberwall construction does not have to take bribe and there will also be
no allegations imposed on them.

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Economic sustainability:
Financial implication other risks and opportunities due to the change in the climate:
Financial implication means an investment for conducting a long term business process,
which the organization will make for effective performance of the organization. The financial
implications will contain many risk and opportunities which will have impacts on the direct and
the indirect operational process of the organization (Field et al. 2012). The demand for the
services and the products will also be impacted in the financial implication. Some of the methods
of managing the opportunity and the risks are:
 Improve energy efficiency
 Renewable energy usages
 Fuel switching
 Use of carbon affects
 Carbon storage and structure
 Flaring, expelling and fugitive emissions
All the above mentioned reasons prove to be effective and harmful for changing the climate.
The government have imposed different environmental standard for maintaing a sustainable
environment and to reduce the climate change. The government have imposed laws on to control
the emission of the greenhouse gases but these improvements are ineffectively regulated by these
methods. Sustainability report can assist government to appreciate, manage and connect with
their communication, economic, communal performance and helps in achieving the goals by
making the organization more efficient.

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Corruption minimization actions:
Corruption in the workplace can affect the performance of the organization and reduce
the productivity of the organization (Muthukrishna et al. 2017). Corruption needs to minimise in
order to maintain a healthy environment which will ensure that the stakeholders will not get
affected.
The organization, Timberwall construction has some serious issue with the corruption in the
workplace. The problem related to corruption came out when an employee named Dennis
McCabe made a complaint to the State corruption commission of corruption scandal. The
corruption scandal involves five of the Timberwall employees and another two partners of the
Timberwall construction. The complaint was made against them that they have bribed the
officers to push the company’s development. The corruption in the business organization needs
to be stopped as it affects the public relation with the organization. GRI 2016 gives a broader
scenario of cultural investment and operating environment of proactive partnership (Kaspereit
and Lopatta 2016). The civil society, public sector or the trade union are not same in combating
the corruption however fraud, bribery money laundering, and extortion are the improper
advantage for the employees as well as for the company. This impacts the reputations, business
model and the environmental and economic ability of goal setting. GRI 2016 has impact on the
negative and positive scenario of objective achievement and the corruption is considered as
negative (Storey et al. 2016).
Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices
To stop the corruption, monopoly practices and anti-trust the organization needs
to take some legal actions. Due to the corrupted behaviour of the employee, the customer choice
gets affected and the business organization will lose the goodwill and its position in the market.

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The market action will also get risk oriented and the hidden transaction and process will take
place. This is not the way a company should work in the environment for their development. The
interpersonal gaps are few between the employees. Anti-competitive behaviour sometimes reacts
in a judgemental way and that is the reason most of the companies tries to develop the
infrastructural advancement of the company some employees are eliminated due to this process.
Environment Sustainability:
Energy consumption within the organisation
The energy consumption in the organization should be in such a way that it maintains the
sustainable standards. There are some rules imposed by the government in maintaining the
energy consumption.
Reporting Business Company should report the below listed information:
 The entire consumption of the fuel within the o0rganziation from the non-renewable
sources and also the fuel types needs to be included.
 Total fuel consumption from the renewable sources within the organization needs to be
mentioned along with the fuel type that is used.
 The total energy that is consumed by the organization should be reported.
There are many organizations in which electricity is the main source of energy and some
organizations use the water or steam which was provided by the water plant or the district
heating plan. The organizations can either purchase the energy or can produce the energy by their
own. The non renewable energy sources include the furnaces, turbines, heaters, boilers,
generators, incinerators and the flares. The non renewable sources of energy contain the fuels
purchased by the external sources. They include gas and mined coal which was extracted from

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the oil and gas extraction. The renewable sources of energy are the biofuels. Timberwall
construction used 1.0 Gigajoule of non-renewable energy, 0.5 Gigajoule of renewable energy
source and 2.0 Gigajoules of electric sources.
Impacts of the services, products and activities have on the biodiversity
Timberwall construction has many impacts on the biodiversity due to its activities.
 The construction business has a direct impact on the transport infrastructure, mines, and
plants. The construction business has a direct impact on the transportation as it includes
carrying of the raw materials and equipments for the construction.
 Pollution, construction business has a high impact on the environmental pollution. The
construction business is responsible for air pollution.
 Reduction of the species is another negative impact of the construction business. The
construction of building and roads increases deforestation and that leads to the reduction
and extinction of the species.
Apart from this there are many indirect impacts on the biodiversity for example it can affect
the supply chain management. The construction business effects can also be seen the
environment for example the climate change is another impact of the atmosphere.
Failure in following the environmental rules and regulations
The organization has to explain the below mentioned data to the government:
 Fine or charge and particular non-monetary authorization for failing to follow the
environmental rules and regulations in terms of:
- Total monetary value of the of the fines and the charges
- The cases that are brought and involved the mechanism of dispute resolution.

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 If the reported business organizations have not yet identified or classified any
disagreement according to the environmental regulations and the laws then a brief
summary of the statement of all the facts is enough.
When assembling the information which was mentioned in the Disclosure 307-1, the reporting
business organizations need to incorporate the judicial and administrative sanctions in case of
failure to obey the environmental regulation and laws, including (Dalietou and Δαλιέτου 2017):
 International treaties, convention and declarations;
 Local, regional sub-national and national regulations;
 The voluntary agreement on the environmental rules with the authorities is considered as
developing and building a substitute for implementation of the new regulations.
 Cases brought against the organization through the use of international dispute
mechanisms or national dispute mechanisms supervised by government authorities;
Social sustainability:
New employee hires and employee turnover
Employee turnover is one of the important factors that the organization should be highly
focused on. The employee turnover rate is one of the vital factors that affect an organization.
The employee retention rate in an organization needs to be low so that the organization can
function effectively (Yang, Wan and Fu 2012). The employee hiring is a tough job and not many
people can hire the effective workers. The human resource management needs to hire effective
and efficient employee in the organization. Some of the important attributes that the organization
needs to see before hiring an individual are age, efficiency, knowledge and skills of the

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candidates rather than focusing on their gender and religions. Ensuring this practice will help the
organization in focusing on the inclusive practices while recruiting workforces. Adopting the
method of inclusive recruitment procedures also ensures the optimal usage of the available
talents. Moreover, it can be said that practicing these techniques will also encourage the
employees to work in a more competent manner.
The high percentage of employee turnover signifies the level of dissatisfaction and the
uncertainty amongst the workforce of the organizations. An uneven pattern of employee
turnover, irrespective of age and gender can denote incompatibility or lack of fair practices in the
workplace (Allen and Shanock 2013). Employee turnover has direct influence on the intellectual
and human resources of an organization. This can as well affect the productivity of the
organization. In addition to this, the higher rates of employee turnover has direct effect on the
payroll of the employee. It can also increase the expenses of employee recruitment process.
Turnover has direct cost implications either in terms of reduced payroll or greater expenses for
the recruitment of employees.
Incidents of discrimination and corrective actions taken
Timberwall constructiojn business has faced problem with the discrimination. Dennis
McCabe has complained against his co workers about harassment that McCabe faced due to the
age. McCabe was humiliated in workplace because of his age. The organization needs to have
proper laws and regulations that every employee must follow in order to keep the workplace
better. According to the instruments of ILO, organizational discrimination can take place
pertaining to multiple aspects for example age, colour, religious and background of employees.

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Impact assessments, Local community engagement, and development programs
The reported business organization will report the below listed information:
 Percentage of the total operations that is implemented with the help of engagement of the
local community, development programs and the impact assessment, which includes the
following use of:
- The impact will be dealt by the occupational safety and health committees and the work
councils.
- Based on the participatory process social impact assessment will be done which alsop
includes the participatory process.
- Formal local community grievance procedure
- Ongoing monitoring and Environmental impact assessments;
- Social impact assessments and Public disclosure of results of environmental;
- Strategies to engage the stakeholders based on the stakeholder mapping procedure.
- Formation of broad committees that can provide consultation to the vulnerable local
communities.
The key elements of managing the impacts of the community are by assessing and
planning for understanding the potential and actual impacts and the strong engagement with the
community of the local for understanding the needs and the expectations. There are multiple
things, which can be included into the engagement of the communities in the local, assessment of
its effects and many development programs. The closure tends to identify the elements that have
been continuously implemented in the organization.

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References:
Allen, D.G. and Shanock, L.R., 2013. Perceived organizational support and embeddedness as
key mechanisms connecting socialization tactics to commitment and turnover among new
employees. Journal of Organizational Behavior, 34(3), pp.350-369.
Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate
sustainability. Routledge.
Bonadio, E., 2013. Standardization agreements, intellectual property rights and anti-competitive
concerns. Queen Mary J. Intell. Prop., 3, p.22.
Dalietou, E. and Δαλιέτου, Ε., 2017. Corporate Sustainability Reporting (CSR) & Corporate
Environmental Sustainability Reporting (CESR) (Master's thesis, Πανεπιστήμιο Πειραιώς).
Field, C.B., Barros, V., Stocker, T.F. and Dahe, Q. eds., 2012. Managing the risks of extreme
events and disasters to advance climate change adaptation: special report of the
intergovernmental panel on climate change. Cambridge University Press.
Gibbs, E., Taber, B.C., Lougheed, G.D., Su, J.Z. and Bénichou, N., 2014. Solutions for mid-rise
wood construction: full-scale standard fire test for exterior wall assembly using a simulated
cross-laminated timber wall assembly with gypsum sheathing (Test EXTW-2)(Report to research
consortium for wood and wood-hybrid mid-rise buildings).
Kaspereit, T. and Lopatta, K., 2016. The value relevance of SAM's corporate sustainability
ranking and GRI sustainability reporting in the E uropean stock markets. Business Ethics: A
European Review, 25(1), pp.1-24.

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Muthukrishna, M., Francois, P., Pourahmadi, S. and Henrich, J., 2017. Corrupting cooperation
and how anti-corruption strategies may backfire. Nature Human Behaviour, 1(7), p.0138.
Storey, J., Roy, D.P., Masek, J., Gascon, F., Dwyer, J. and Choate, M., 2016. A note on the
temporary misregistration of Landsat-8 Operational Land Imager (OLI) and Sentinel-2 Multi
Spectral Instrument (MSI) imagery. Remote Sensing of Environment, 186, pp.121-122.
Yang, J.T., Wan, C.S. and Fu, Y.J., 2012. Qualitative examination of employee turnover and
retention strategies in international tourist hotels in Taiwan. International Journal of Hospitality
Management, 31(3), pp.837-848.

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