MBA402: Governance, Ethics, and Sustainability Assessment Report

This report provides a sustainability assessment of Timberwell Constructions, a residential development company, based on the GRI (Global Reporting Initiative) standards. The report meticulously examines the company's performance across economic, environmental, and social dimensions. Under economic sustainability, it addresses financial implications of climate change, incidents of corruption, and anti-competitive behaviors. The environmental section evaluates energy consumption, impacts on biodiversity, and compliance with environmental regulations. The social sustainability aspect covers employee-related disclosures like hiring, turnover, incidents of discrimination, and community engagement. The analysis incorporates specific GRI disclosures (201-2, 205-3, 206-1, 302-1, 304-2, 307-1, 401-1, 406-1, and 413-1), drawing upon a provided case study of Timberwell Constructions. The report aims to inform stakeholders about the company's commitment to sustainable practices and its adherence to GRI guidelines. The report details the financial implications of climate change, including a fine of AUD 50,000 and the estimated cost of AUD 4 million to mitigate risks. It also documents the legal cases related to corruption and anti-competitive behavior. The report is based on the GRI standards, and the disclosures of the GRI with respect to the sustainability has been discussed with reference form the GRI manual.

Running head: GOVERNANCE ETHICS AND SUSTAINABILITY ASESSMENT
GOVERNANCE ETHICS AND SUSTAINABILITY ASESSMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................5
Company Overview:........................................................................................................................6
The GRI Reporting Standards.........................................................................................................7
Disclosure 200: Disclosure of Economic Standards....................................................................7
Disclosure 201-2: “Financial implications and other risks and opportunities due to climate
change”....................................................................................................................................7
a. The financial implications of the risk or opportunity before action is taken....................8
b. The methods used to manage the risk or opportunity.......................................................8
c. The cost of actions to manage or mitigate the risks or opportunity..................................8
Disclosure 205-3: “Confirmed incidents of corruption and actions taken”.............................8
a. Total number and nature of confirmed incidents of corruptions......................................9
b. Total number of confirmed incidents in which employees were dismissed or disciplined
for corruption:..........................................................................................................................9
c. Total number of confirmed incidents when contracts with business partners were
terminated or not renewed due to violations related to corruption:.........................................9
d. Public legal cases regarding corruption brought against the organization or its
employees during the reporting period and the outcomes of such cases.................................9
Disclosure 206-1 Legal actions for anti-competitive behaviour, anti-trust, and monopoly
practices.....................................................................................................................................10
a. Number of legal actions pending or completed during the reporting period regarding
anti-competitive behavior and violations of anti-trust and monopoly legislation in which the
organization has been identified as a participant:..................................................................10
b. Main outcomes of completed legal actions, including any decisions or judgments:......10
Disclosure of Environmental Standards: Disclosure 300..........................................................11
Energy consumption within the organization: Disclosure 302-1:.........................................11
a. Total fuel consumption within the organization from non-renewable sources in joules11
b. Total fuel consumption within the organization from renewable sources in joules:......11
c. Total electricity consumption in Joules..........................................................................11
d. Total energy consumption within the organization, in joules:.......................................12
Disclosure 304-2: Significant impacts of activities, products, and services on biodiversity....12
Disclosure 307-1: Non-compliance with environmental laws and regulations.....................13
Disclosure of Social Sustainability: Disclosure 400..................................................................13

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Disclosure 401-1: New employee hires and employee turnover...........................................13
Disclosure 406-1: Incidents of discrimination and corrective actions taken.........................14
Disclosure 413-1: Operations with local community engagement, impact assessments and
development programs...........................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................17
Bibliography..................................................................................................................................18

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Introduction
The GRI or the Global Reporting Initiative is one of the internationally acclaimed
corporate reporting framework that allows for evaluating the governance of any organisation
with respect to the sustainability in terms of Economic, Social and Environmental. The GRI lays
out disclosures and guidelines which are to be followed while reporting through GRI standards.
The standards being best in the industry provide a universal framework that allows a non-biased
analysis of the organisation and provides a report that can be universally accepted and
acknowledged (Berinde & Andreescu, 2015).
This report will examine and evaluate the attributes of sustainability in terms of
Economic, Social and Environmental for Timberwell Constructions and will follow the GRI
framework in assessing these attributes of the organisation. The necessity to frame the report is
aimed to provide confidence building measures on the behalf of the company for the
stakeholders and the consumers. The information that this report will provide intends to inform
the internal and the external stakeholders about the commitment of the company towards
economic sustainability, social responsibility and environmental sustainability. The report has
been made in accordance with the GRI standards and the disclosures of the GRI with respect to
the sustainability has been discussed with reference form the GRI manual. The report wishes to
provide a clear view about the company’s standpoint on the above mentioned aspects of
sustainability. The report will conform to the economic sustainability of the disclosures of 201-2,
205-3 and 206-1 which will lay out the economic sustainability of the company (Berinde &
Andreescu, 2015). The disclosures of 302-1, 304-2 and 307-1 will be followed to report on the

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Environmental sustainability of the company. The social sustainability will be framed according
to the 401-1, 406-1 and 413-1 disclosures of the GRI.
The sustainability report aims at building consumer relationships keeping at par the GRI norms.
The necessity to produce a sustainability report for Timberwell Constructions is to inform the
internal and the external stake holders that Timberwell Constructions is committed to the cause
of the environment. The information provided in this report will allow the stakeholders, both
internal and external to understand the role played by Timberwell Constructions and provide an
opportunity to make decisions regarding the approach to sustainable development. The report is
framed on the foundation of the GRI standards and will conform to the guidelines directed by the
Global Reporting Initiative. The report will be addressing the economic sustainability with
reference to disclosure number 201-2, 205-3 and 206-1. The environmental sustainability with
reference to disclosures 302-1, 304-2, and 307-1 will be addressed and the social sustainability
with reference to disclosures to 401-1, 406-1, and 413-1 will be taken into considerations to
prepare the sustainability report. Finally the report will make recommendations according the
GRI norms and conclude the report within the frame work of GRI. The report will be subdivided
into sections based on each sustainable attributes and will evaluate the impacts that te
organisation has with respect to these attributes (Globalreporting.org 2019).
Company Overview:
The Timber well constructions is a residential development company that is engaged in
constructing residential projects and is currently involved in building in the Stanwell Council
district. The organisation employs a total of 58 employees. There are no female employees in the
company. Timberwell construction is facing issues with employee retention and 17 employees

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have recently left the company. In order to meet up with the resource deficit, the company has
hired 12 apprentices. The company is willing to transform the work culture in the company and
has decided to introduce rostered day off for the employees along with introducing new
compensation structures for the employees.
The GRI Reporting Standards
Disclosure 200: Disclosure of Economic Standards
The disclosure 200 of the GRI manual allows the company to analyse its economic
responsibilities and evaluate the economic standards within an organisation. Based on the
standards laid down in the disclosure, the evaluation of Timberwell construction will be done in
the subsequent sections which will allow the stakeholders to analyse the economic standard of
the company.
This section will conform to the reporting standards as per the disclosure of 201-2, 205-3 and
206-1
Disclosure 201-2: “Financial implications and other risks and opportunities due to climate
change”
The disclosure 201-2 reviews the financial consequences that a company is subjected to, owing
to climate change. The disclosure allows the company to evaluate its position and the risks and
opportunities that the company has experienced due to the changing climate.

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Description of the risk or the opportunity and the classification of it in terms of physical,
regulatory or other attributes:
As per this disclosure, Timberwell Constructions is exposed to the risk of bushfires, since the
site of operation of the company are prone to bush fire incidents. The current operational site
of Timberwell construction is exposed to the danger of bushfire this is one of the major risk
that Timberwell Construction is exposed to and is a result of the changing climate in the
region.
The probable impacts associated with the risks or opportunities:
Timberwell Construction being exposed to dangers form bush fires needs to be more cautious
and implement safety policies more strictly and therefore enhance the issues related to the
prevention and protection form bush fires. This would require the company to upgrade its
requirement and strategies.
The financial implications of the risk or opportunity before action is taken: The
Company has been charged with a fine of 50,000.00 Australian Dollars by the Town
planning organisation of the Stanwell District Council and has been asked to provide a
detailed environmental sustainability report on behalf of the organisation.
The methods used to manage the risk or opportunity: The Company has adopted certain
policies to mitigate the issues associated with the risks. Timberwell construction has
consulted third party firms to assess and evaluate their environmental impact and therefore
assess current scenario of the company. Timberwell Construction will thereafter frame
policies to adhere to the standards stated by the firm. (Globalreporting.org 2019).

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a. The cost of actions to manage or mitigate the risks or opportunity. The estimated cost
is expected to be approximately Four Million Dollars which would allow Timberwell
Constructions to manage the cost of the actions associated with the risks. This cost would
allow the company to adequately adjust the issues related to the environmental
sustainability and fulfil the requirements and standards of Timberwell Constructions.
Disclosure 205-3: “Confirmed incidents of corruption and actions taken”
Timberwell Constructions have reported the incidents and have provided all necessary
information regarding cases of corruption and the actions that have been taken with respect to the
incidents reported. The disclosure 205-3 reports all incidents that confirm the incidents of
corruption in the company and therefore addresses the incidents that have taken place in the
organisation. (Globalreporting.org 2019).
a. Total number and nature of confirmed incidents of corruptions:
No confirmed events of corruption or malpractice have been found within the
organisation, however the company is facing a public corruption litigation and the verdict
is yet to be delivered by the court.
b. Total number of confirmed incidents in which employees were dismissed or
disciplined for corruption:
The Timberwell constructions have confirmed that no employee has been discharged or
relieved off duty on grounds of corruption. However there is an instance where one
employee has been suspended on grounds of malpractices and corruption and all benefits
and pay have been suspended till end of prosecution.

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c. Total number of confirmed incidents when contracts with business partners were
terminated or not renewed due to violations related to corruption:
The company has no occasions of corruption with any of its business associates. A single
instance have been recorded where the company has terminated its contract on grounds of
corruption and malpractices with an external contractor. There has been accusations of
corrupt practices and unfair privileges and there contract has been terminated.
d. Public legal cases regarding corruption brought against the organization or its
employees during the reporting period and the outcomes of such cases:
There is one accusation of corruption brought against the organisation and five of the
employees have been accused of bribery and corruption. Two external contractors are
also believed to be involved in the case. The pay and benefits of the employees have been
deferred till the end of the suit and the contracts with the external contractors have been
terminated.
Disclosure 206-1 Legal actions for anti-competitive behaviour, anti-trust, and
monopoly practices
The disclosure 206-1 relates to information regarding the legal actions with respect to anti-
competitive behaviour and, anti-trust and practices that promote monopoly. This section will
report about the legal proceedings and legal issues of Timberwell Constructions.
(Globalreporting.org 2019).

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a. Number of legal actions pending or completed during the reporting period
regarding anti-competitive behavior and violations of anti-trust and monopoly
legislation in which the organization has been identified as a participant:
One instance of a legal case regarding promoting of monopoly and anti-competitive and anti-
trust behavior has been reported. The company has been accused of engaging in activities that
have created conflict among the contractors and suppliers and it had been accused that
Timberwell Construction has threatened its contractors and suppliers to end their contract if they
had involved with other competitor forms. A case has been filed with the ACCC or the
“Australian Competition and Consumer Commission” and the Federal Court will hear the case in
the next four months. (Globalreporting.org 2019).
b. Main outcomes of completed legal actions, including any decisions or judgments:
The case has been listed and the hearing is due. The complete result of the hearing is supposed to
be delivered in four months’ time.
Disclosure of Environmental Standards: Disclosure 300
This section complies with the Environmental Standards of the GRI and information regarding
the Environmental standards will be provided in this section.
Energy consumption within the organization: Disclosure 302-1:
This section will review the energy consumptions of Timberwell Constructions and will evaluate
the total energy consumption of the company form both renewable and non-renewable resources.
The 300 series disclosures discusses the various issues related to the development of
(Globalreporting.org 2019).

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a. Total fuel consumption within the organization from non-renewable sources in
joules:
The total consumption of fuel from non-renewable resources is evaluated to be 1.0 Gigajoules
per annum. The Timberwell Constructions consumes a considerable amount of energy owing to
its nature of operation.
The entire fuel consumption of Timberwell constructions from non-renewable resources amounts
to 1.0 Gigajoules per annum.
b. Total fuel consumption within the organization from renewable sources in joules:
Timberwell Construction uses 0.5 Gigajoules of energy per annum from cleaner and renewable
resources.
Total electricity consumption in Joules:
Timberwell Construction is perceived to use 2.0 Giga Joules of electricity per annum and is
considerable share of the energy that is used by the company.
c. Total energy consumption within the organization, in joules:
The total yearly consumption of energy in the organisation is assessed to be 3.5 Gigajoules
which is a considerable amount of energy that is consumed. Timberwell Constructions plans to
reduce their consumption of energy from non-renewable sources by 50% and aims to achieve the
target by the next financial year. The company states that they are accountable for their activities
and they aim to reduce their ecological footprint and act more responsibly in using energy from
both renewable and non-renewable resources. (Globalreporting.org 2019).

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Disclosure 304-2: Significant impacts of activities, products, and services on
biodiversity
The section will discuss about the compliance of the organisation with respect to the impacts of
the products, services and activities of the organisation.
a. Nature of significant direct and indirect impacts on biodiversity:
The construction activities of Timberwell construction have impacted the environment to a great
extent. The project at Stanwell have greatly affected the biodiversity and the habitat of certain
flora and fauna in the region. The impacts on the environment due to the activities of Timberwell
construction has been listed below as follows:
 The Timber well construction have been accused of destroying and clearing of coastal
grasslands covering 0.45 hectares which have been critically endangered.
 Habitat reduction and conversion of the Wallum Sedge frogs at Otford Park Development
site which is one of the major projects of the Timberwell constructions.
To conform to environmental regulations and obligations, Timberwell Constructions is dedicated
to restore the endangered grassland which will cost Timberwell Constructions a total sum of $
440,000.00 Australian Dollars. The organisation has taken adequate steps and have also framed
an Environmental Impact Assessment project to act on the habitat restoration of the Wallum
Sedge Frogs.
Disclosure 307-1: Non-compliance with environmental laws and regulations
This section of the disclosures allows the stakeholders and the authorities to understand the
current scenario of Timberwell Constructions with respect to the compliance with environmental

13GOVERNANCE ETHICS AND SUSTAINABILITY ASESSMENT
laws and regulations. Timberwell Construction have on several instances violated the
environmental rules and regulations and they have been imposed with fines for not complying
with the rules and regulations during their operations. The subsequent sections will be discussing
the various charges and fines that have been imposed upon Timberwell Constructions and these
non-compliances have been reported in this section. (Globalreporting.org 2019).
a. Total monetary value of significant fines:
Timberwell constructions have been slapped with a penalty of $200,000.00 Australian Dollars
due to the destruction of coastal grassland which has been recognised as an endangered flora.
The company has been ordered to initiate a rehabilitation and habitat restoration programme in
accordance with the Local Environmental Plan. The restoration and rehabilitation program would
cost the company a sum of 44,000 Australian Dollars and the company will need to implement
strict environmental practices to reduce the fines and charges in the future.
Disclosure of Social Sustainability: Disclosure 400
The disclosure series of 401-1, 406-1 and 413-1 will detail about the work culture and the
employee satisfaction within the organisation. The company is supposed to look into the
sustainability of the organisation with respect to the social environment of the company.
New employee hires and employee turnover: Disclosure 401-1
As per the company reports, Timberwell Constructions currently has a strength of 58 employees
no female employees are employed in the company. The company has faced a high rate of
attrition and 17 employees have recently left the company and the organisation has hired 12
apprentices to bridge the gap of resources in the company. The turnover rate being 29% makes
the company its review its staff policies and reform the employee benefits, and remuneration

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standards of the company. The company is restricting its employee policies in order to provide a
better job satisfaction and employee retention as per the industry standards. (Globalreporting.org
2019).
Disclosure 406-1: Incidents of discrimination and corrective actions taken
There had been incidents of discrimination and employee attrition has occurred due to such
incidents. The section will report the number of incidents and the corrective actions taken by the
organisation.
a. Total number of incidents of discrimination during the reporting period:
The organisation has been accused with a case of discrimination and a case has been registered
by an employee who have resigned on the grounds of discrimination received from co-workers
on grounds of age. The employee being over the age of 50 was exposed to discrimination form
the fellow employees and the organisation had failed to contain the situation.
b. Status of the incidents and actions taken
Timberwell construction have compensated the employee who have accused the organisation to
be discriminatory with a sum of 4,400 Australian Dollars to comply with the norms of the Fair
work Commission. Timberwell Construction now commits to review the work culture and
introduce policies that restrict discrimination on any grounds. The company is dedicated to
implement employee friendly policies in the future to adhere to standards of the Fair Works
Commission Australia (Globalreporting.org 2019).

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Disclosure 413-1: Operations with local community engagement, impact assessments and
development programs.
The company has made efforts to contribute to the local communities as a part of their corporate
social responsibility and also at the same time have decided to compensate the damages
Conclusion
The Global Reporting Initiative is one of the internationally acclaimed sustainability reporting
frameworks and the reporting of any organisation according to the GRI provides a credible report
which satisfies international standards by delineating the standards of social, economic and
environmental sustainability. The GRI reporting initiative provides a credible report for any
organisation and allows the stakeholders, the public and the authorities to be adequately
informed about the organisation or the company. Timberwell Constructions through this report
provides a detailed summary of the company with respect to the sustainability approaches with
regards to economic, environmental and social aspects. The report also acts as a reference for
Timberwell constructions for analysing their current status and would allow for the external
firms and contractors to understand the standpoint of the company with respect to the various
aspects of sustainability.

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References
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GRI standards. The Annals of the University of Oradea, 17.
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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), 318-335.
Globalreporting.org (2018). GRI Standards Download Homepage. [online] Globalreporting.org.
Available at: https://www.globalreporting.org/standards [Accessed 11 June. 2019].
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production, 59, 5-21.
Vigneau, L., Humphreys, M., & Moon, J. (2015). How do firms comply with international
sustainability standards? Processes and consequences of adopting the global reporting
initiative. Journal of Business Ethics, 131(2), 469-486.
Bibliography
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Herbohn, K., Walker, J., & Loo, H. Y. M. (2014). Corporate social responsibility: the link
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Ioannou, I., & Serafeim, G. (2017). The consequences of mandatory corporate sustainability
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Kaur, A., & K. Lodhia, S. (2014). The state of disclosures on stakeholder engagement in
sustainability reporting in Australian local councils. Pacific Accounting Review, 26(1/2), 54-74.
Siew, R. Y., Balatbat, M. C., & Carmichael, D. G. (2013). The relationship between
sustainability practices and financial performance of construction companies. Smart and
Sustainable Built Environment, 2(1), 6-27.
Vigneau, L., Humphreys, M., & Moon, J. (2015). How do firms comply with international
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Zutshi, A., & Creed, A. (2015). An international review of environmental initiatives in the
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