Sustainability Assessment Report: Timberwell Constructions - MBA402

This report presents a sustainability assessment of Timberwell Constructions, a residential development company, based on the GRI Sustainability Reporting Standards 2016. The assessment covers three key areas: economic, environmental, and social sustainability. The economic analysis examines climate change risks and opportunities (Disclosure 201-2), confirmed incidents of corruption (Disclosure 205-3), and legal actions related to anti-competitive behavior (Disclosure 206-1). The environmental evaluation assesses energy consumption (Disclosure 302-1), impacts on biodiversity (Disclosure 304-2), and non-compliance with environmental regulations (Disclosure 307-1). Finally, the social sustainability aspect considers hiring practices and employee turnover (Disclosure 401-1), discrimination issues (Disclosure 406-1), and the company's engagement with local communities (Disclosure 413-1). The report highlights Timberwell's practices, compliance issues, and recommendations for improvement in each of these areas, providing a comprehensive overview of its sustainability performance.

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GOVERNANCE, ETHICS, AND SUSTAINABILITY
(A sustainability assessment on Timberwell constructions)

GOVERNANCE, ETHICS, AND SUSTAINABILITY
Table of Contents
Introduction................................................................................................................................2
A. Economic sustainability........................................................................................................2
i. Disclosure 201-2.............................................................................................................2
ii. Disclosure 205-3.............................................................................................................2
iii. Disclosure 206-1.............................................................................................................3
B. Environmental sustainability.................................................................................................4
i. Disclosure 302-1.............................................................................................................4
ii. Disclosure 304-2.............................................................................................................4
iii. Disclosure 307-1.............................................................................................................5
C. Social sustainability...............................................................................................................5
i. Disclosure 401-1.............................................................................................................5
ii. Disclosure 406-1.............................................................................................................6
iii. Disclosure 413-1.............................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8
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Introduction
Sustainability assessment is one of the broader ways to critically evaluate the decision
making and the policies by the company taken from an environmental, social and economic
perspective. The study is based on the sustainability analysis of Timberwell constructions. It
is a residential development company which is entrusted with the responsibility in building
apartments in Stanwell Council district. However, in recent times, a sustainability assessment
report would be created as per the GRI Sustainability Reporting Standards 2016 which
would help in answering the conditions required for environmental, economic and social
sustainability for the company.
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A. Economic sustainability
i. Disclosure 201-2
As per the disclosure 201-2, the climate changes in the environment could create a lot of
risks and opportunities for the company. The primary risks are associated with the shift in
consumer preferences and the rising demand for environment-friendly products. The main
advantage of the disclosure is that better decisions are taken with the help of customer
engagement and dialogue with the stakeholders (Abeydeera et al. 2016). As per the report
published by the Stanwell council, it had identified that the place in which the company is
operating situated in one of the bushfire zones. This had come due to the adaptation of the
environmental plan by the council, which would be taking effect in the six weeks.
Unfortunately, for the Timberwell constructions, it had a development site in the Stanwell
district of bush fire zones, where the chances of catching up fire are enormous. This had
created the risk for the company to pay an additional penalty of 4 million dollars to the
council (Adams, 2015). As a result, the action plan of the company had been changed in
which, they want to contact with an external planning firm so that it could create the site in
such a place where the chances of getting penalized are less. In order to do that, the
company is collaborating with the Stanwell council (Global reporting, 2019). This would cost
around 50000 dollars which is much less than 4 million pounds.
ii. Disclosure 205-3
The disclosure 205-3 states that there had been specific incidents of corruption cases like
bribing or kickbacks. This disclosure defines that the employees in the corruption incidents
are often expelled from the workforce to maintain the image of the company. Along with
that, the business partners are often expelled from the contracts in the case of corruption
incidents. As per the discussion in the study, Timberwell constructions had been in a
corruption case which involved 5 employees of the company and 2 business partners,
respectively, as complained by Dennis (Berinde and Andreescu, 2015).
As per the complaint was given by Dennis, it can be stated that the employees of the
company and the business partners bribed some of the project officers. When this case went
public upon investigation by the corruption commission of the state, the commission decided
to charge the employees. Even, one of the external consultants had been indicted in the case
of a corruption case. The outcome was that the company had to eliminate the charged
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employees from its workforces. The company had rightly followed the disclosure where the
company had decided to eliminate its contract with some of the business partners.
iii. Disclosure 206-1
The disclosure 206-1 states that some legal actions against a company should be taken if the
company is found to be associated with the anticompetitive behaviour, monopoly or the anti-
trust regulations. Every company should be related to a fair competition so that it can form a
clear image (De Villiers and Sharma, 2017). The legal decisions under the disclosure could
disrupt the market activities of the company, which could put additional pressure in its
operation in its domain. The case study reveals that the company Timberwell constructions
had been in the anti-competition for some time. As per one of the complaints of Dennis, the
company had misused some of the market power in dealings with some of its stakeholders.
This had come after the proceedings by the Australian Competition and Consumer
Commission (ACCC) in the federal court. The ACCC had even pointed out that the company
had been threatening some of the local builders on their association with one of the
companies who could give competition to Timberwell constructions. The senior executives
of the company had threatened the suppliers and contractors from doing the business with one
of its competitors. This clearly shows the anti-competitive attitude of the company (Dumay,
2016). Another case filed by the ACCC was that the company was trying to prevent the entry
of the new company in the same area where it is running. This had made it appear before the
federal court within a period of 4 months to face legal actions based on the disclosure 206-1.
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B. Environmental sustainability
i. Disclosure 302-1
The disclosure 302-1 states that the organization should try to monitor and track the fuel
consumption. The company should try to report fuel consumption in separate ways for
renewable and nonrenewable sources. The total energy consumption amount should be
expressed in the form of joules or watt (Çalıyurt and Said, 2018). The sources on which the
consumption is being computed should belong to the company only. Timberwell
constructions came under the public scanner due to its unethical practices and to keep itself
safe. The company had bolstered the public relations bey showing it as one of the energy
active companies.
In one of the media releases by the company, it is seen that it had rightly followed the
disclosure 302-1 (Global reporting, 2019). This could be seen from the fact that the
calculation of the energy usage from the renewable and non-renewable sources are done in a
separate manner (Bernard et al. 2015). The sources that had been taken to do the calculation
belonging to the company only. Even, the fuel consumption had been expressed in the joules,
and a separate calculation is being shown for electrical consumption. Even, the company
desires to enhance fuel consumption by half in the three years.
ii. Disclosure 304-2
The disclosure 304-2 states that the company had to take adequate steps to maintain the
biodiversity in the location where it is situated. The organization should take up specific steps
to apply particular techniques which could preserve the species that is reducing over time.
Even, the company should report of its actions on the habitat and the pollution that is being
created by its efforts which might disturb the biodiversity (Hadi, 2018). From the
Environmental impact assessments, it could be seen that the development site of the company
which is situated at Otford Park contains about 60% of the sedge frog.
The analysis had found that the residential development project in this site by the company
could destroy the habitat and even make it very hard for the frogs to survive in that place.
This had encouraged the company to contact and collaborate with the council and the other
environmentalists so that the constructional activities could go on a different site and the
habitat is not destroyed for the rare species (Janik, 2017). This is being done based on the
disclosure 304-2. Even the company had even revised its action plan so that minimum
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pollution is created in the places where the species could get hampered, thereby preserving
the biodiversity.
iii. Disclosure 307-1
The disclosure 307-1 states that the company should try to show its failure in complying with
its steps while dealing with environmental penalties. This might have come due to the non-
compliance of the company with the regulations or the laws of the environment due to which
they had to pay significant fines. The non-compliance with the environment involves the
cleaning activities of the company, which would add extra financial pressure on it (Lewellyn
et al. 2017). From the investigation performed by the Department of the Environment and
Energy, it is seen that Timberwell constructions had been engaged in the cleaning of the
environment like the coastal grasslands, which is belonging to the critically endangered
community.
As a result, they had to pay a fine of 200000 dollars for clearing up about 0.45 hectares of the
coastal grasslands. When the State Planning Scheme investigated the conditions of the
cleaned-up areas, it is seen that flora and fauna in those particular areas had been severely
affected. This clearly showed that the company had not been following the environmental
laws and regulations in the Stanwell territory. As per the disclosure, the company had to
make an external review of its vegetation cover through an auditing by the contractors and to
solve the problems. Rehabilitation programmes had to be done within 440000 dollars.
C. Social sustainability
i. Disclosure 401-1
As per the disclosure 401-1, an organization had to make a better hiring technique where the
company could recruit the people belonging to the age groups of 30 to over 50 years old.
Even, the company had to give a complete report on employee turnover, which might be due
to the dissatisfaction in the workplace faced by the employees (Zametica and Johansson,
2019). The turnover in terms of age or sex could reflect inequity in the workplace, and this
could hamper the reputation of the company. One of the main facts that had been found in the
case studies that 17 employees had left the company and this may be due to the age
discrimination.
One of the employees had even stated that he was discriminated based on age as he was older
than 50 years. This violated the regulations of the workplace in the disclosure 401-1 where
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the employee was facing humiliating jokes. As a result, the Fair Work Commission had
forced the company to pay 4400 dollars to the employee as a compensation amount. Even,
the commission had forced the company to upgrade the anti-discriminatory policies so that
the employees do not see any bullying. The company had even adopted specific steps to
reduce the employee turnover by increasing the pay rates of the employees and a monthly day
off to retain the old employees. Even, the company had to appoint some 12 apprentices to
maintain its workflow in the company.
ii. Disclosure 406-1
The disclosure 406-1 reflects that the company should try to address the discrimination that is
going in the company and apply the required techniques to solve the issue correctly. One of
the employees of the company had pointed out about the discrimination that is going in the
company, and it is found to be based on the age factor. The people above the 50 years age
tend to be facing more amount of discrimination, and that is demotivating the old employees
and due to which, they left the company (Lindblom, 2017). Based on an investigation carried
out by the Fair Work Commission, it was founded that the discrimination claim made by
Dennis was right and they pressurize the company by forcing the company to pay him 4400
dollars as a compensation amount. In addition, the commission had even compelled the
company to update the anti-discriminatory policies and give the necessary training to the
employees so that the bullying activities gets reduced. This had forced the company to stop
discrimination in the workplace, where the older age groups are mainly targeted.
iii. Disclosure 413-1
The disclosure 413-1 addresses the needs of the local communities, which had to be followed
and maintained by the companies. An organization had to fulfil the interests of the
communities living in the nearby areas so that they help the company in performing their
business activities. As per the media reports released by the company, it claims that
Timberwell constructions had been engaging with the local communities and even
performing the environment impact assessment so that it could know what type of residential
development the local people mostly prefer (Michalczuk and Konarzewska, 2018). This is
mainly done by the meetings with the local people, carrying out the environmental impact
assessments and development programmes to address the needs of them. Even, one of the
reports stated that the company had been collaborating with the Stanwell Council so that the
local environmental plan could be applied to the required regions.
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Conclusion
Timberwell constructions had been considered as one of the major builders in the residential
projects, but due to its mode of operation, it is facing severe challenges. One of them is
related to the age discrimination in the workplace in which the GRI 401-1, 406-1 and 413-1
could be applied to solve the issues. The actions of the company in its business are creating
challenges to the environment due to which it had to face specific penalties as per the
Disclosure 307-1. Even, the company had been charged with the additional charges on being
anti-competitive in its domain and that had forced it to make fair trading based on Disclosure
206-1.
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