Sustainability Report: Analysis of Timberwell Construction (MBA402)

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Added on  2023/04/20

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This sustainability report provides a detailed analysis of Timberwell Construction's performance across economic, environmental, and social dimensions, adhering to the GRI Sustainability Reporting Standards 2016. The report examines economic sustainability through disclosures 201-2 (financial implications of climate change), 205-3 (incidents of corruption), and 206-1 (legal actions for anti-competitive behavior). Environmental sustainability is assessed via disclosures 302-1 (energy consumption), 304-2 (impacts on biodiversity), and 307-1 (non-compliance with environmental regulations). Social sustainability is addressed through disclosures 401-1 (employee turnover), 406-1 (incidents of discrimination), and 413-1 (local community engagement). The report highlights the company's challenges, including negative brand reputation, allegations of corruption, and environmental non-compliance, while also discussing its efforts to improve energy efficiency, conserve biodiversity, and engage with the local community. The analysis emphasizes the interconnectedness of the three pillars of sustainability and their impact on the company's stakeholders, customers, and overall business performance, including recommendations to improve the organization's practices.
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Running head: SUSTAINABILITY REPORT
SUSTAINABILITY REPORT
Name of the university
Name of the student
Author note
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Table of contents
Introduction......................................................................................................................................2
Background..................................................................................................................................2
Methodology................................................................................................................................2
Economic sustainability...................................................................................................................3
Disclosure 201-2..........................................................................................................................3
Disclosure 205-3..........................................................................................................................4
Disclosure 206-1..........................................................................................................................4
Environmental Sustainability...........................................................................................................5
Disclosure 302-1..........................................................................................................................6
Disclosure 304-2..........................................................................................................................7
Disclosure 307-1..........................................................................................................................7
Social sustainability.........................................................................................................................8
Disclosure 401-1..........................................................................................................................8
Disclosure 406-1..........................................................................................................................8
Disclosure 413-1..........................................................................................................................9
Conclusion.......................................................................................................................................9
Reference list and bibliography.....................................................................................................11
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Introduction
Background
The term sustainability reporting is being considered as an essential tool for managing the
corporate responsibilities. In order to bring the financial sustainability in an organization,
involvement of stakeholders, customers and investors in the sustainability reporting is important
so that the demand of significant market segment can be fulfilled (Wilson 2015). In order to
ensure the standard profit, it is very important for the entrepreneurs to contribute themselves in
developing the effective strategic initiatives so that the social, environmental and economic
aspects of sustainability can be properly covered (Mohammad 2013). Analyzing the UN
reporting regulations, it has been identified that GRI principals are important for managing the
sustainability reporting initiatives. Analyzing the case study of Timberwell, it has been
identified that due to unstable pricing policies of the company, social as well as economic
concerns has been increased. Due to the pricing policy of Timberwell construction, the social
wellbeing as well as financial prosperity of the potential customers is getting influenced. It
cannot be denied that the three pillars of sustainability are interconnected to each others and
these pillars have strong impact on the current competitive business environment. The study has
shed light on the significant impact of sustainability reporting for understanding the future
perceptions of customers and employees.
Methodology
The GRI standard of reporting has significant impact for confirming the global objectives
of sustainability that helps to clarify the specific regulation for implementing positive
transformation in the workplace. del Mar Alonso‐Almeida, Llach and Marimon (2014) stated
that, GRI standards of sustainability reporting is being considered as an effective process, in
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which environmental, economic and social sustainability dimensions are being covered. In this
GRI guidelines the compulsory actions of the organizations towards maintaining sustainability
standard are being introduced, which brings the long term benefits to the organizations
(Mohammad 2013).
Economic sustainability
Economic sustainability has significant impact on driving the long-term benefits of the
organization. Through the exploration of existing resources, the economic sustainability
initiatives can encourage the monetary as well as the human possessions. According to Crane
and Matten (2016), the economic sustainability initiative can help to develop values so that needs
of the customers can be satisfied and excessive expanses can be reduced. In order to implement
the smart business operation strategies, the below cost effective principles can be beneficial for
Timberwell construction.
Disclosure 201-2
Financial implications and other risks and opportunities due to climate change
Increasing amount of employee turnover and negative brand reputation, Timberwell has
faced various operational failure in business. In order to survive in the market, it has become
essential for the organization to transform its negative brand reputation by bringing the strong
organizational culture in the workplace (Cooper, Stamford and Azapagic 2016). In order to deal
with the situation, multiple social media engagement initiatives have been adopted by the
organization so that the progressive outcome can be achieved by driving the positive attention of
potential customers (Rohrbeck, Konnertz and Knab 2013). In case of driving the special media
attention, the community engagement initiatives through the introduction of Greenery Park for
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children has been done by maintaining the environment guidelines. In order to introduce the
sustainability initiatives, Timberwell has effectively implement the energy efficient strategy by
reducing the exploitation of energy. In the third release, in order to implement the social
development program, Timberwell has contributed in the local community by satisfying the
needs of affordable social housing.
Disclosure 205-3
Confirmed incidents of corruption and actions taken
Due to the unethical corporate practices, the allegation against five Timberwell
employees and two business partners have been aroused by Dennis. As per the allegation, for
driving the organizational development the two external consultants and five employees have
offered bribes to the officers of the council project. After the complaint against these employees,
the organization has adopted strict action against them. Without making any delay, the
employees have been suspended and all the collaboration with accused external consultants have
been can cancelled by the organization.
Disclosure 206-1
Legal actions for anti-competitive behavior, anti-trust, along with monopoly practices
A series of complains have been lodged by Dennis against Timberwell to the
government authorities. The allegation against Timberwell for anti-competitive practices by
misusing the power in the market and exclusive dealing has been made by Dennis to the
Australian Competition and Consumer Commission. In the justification ACCC mentioned that
Timberwell were aware of the new entrant operation in the construction industry, as a result, the
senior executive officer of the organization has tried to reducing the competitiveness in the
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market. By continuing this it has been identified that the senior executive of Timberwell has
threatened the suppliers not to provide materials to the new entrants. Although the final result of
the case, has not been published yet as the case is pending in court for last four months.
Environmental Sustainability
Environmental sustainability is being considered as the process in which the healthy
community as well as the environmental components can be effectively served. By maximizing
the availability of resources, environmental sustainability program contributes in the community.
By satisfying the environmental sustainability concerns effective uses of natural resources can be
maintained by the organization (Walker et al. 2014). Therefore, it can be said that by limiting the
wastage of resources, environmental sustainability strategy of an organization can help to safe
the organization in economic way. Reducing the amount of electricity uses, both the renewable
and non-renewable energy sources supply can be effectively maintained. It cannot be denied that
it is very important for the organizations to follow the environmental guidelines in an effective
manner so that the critical operational needs of the organization can be maintained for longer
period.
Assuming the buying behavior as well as decision making process of different
organizations, it has been identified that depending on the environmental guideline following
tendency of the organizations, purchasing behavior of the customers get influenced (Tsai et al.
2013). Analyzing the current behavioral trend of the customers, it has been identified that people
have become highly conscious about the importance of sustainability initiatives. Therefore, it can
be said that in order to develop an effective customer base, the sustainability initiatives of
organization can play an influential role. Analyzing the situation of Timberwell, it can be said
that due to ignorance of the environmental issues, the legal allegations against the company have
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been increased. In order to surviving in the competitive business environment, it has become
necessary for the Timberwell to introduce strong sustainability strategic initiatives so that the
eco-friendly operations can be introduced by the company. In order to introduce effective
business practice, it has become necessary for the Timberwell construction company to introduce
positive organizational culture so that the employees can be empowered and turnover rate can be
reduced. By continuing this it can be said that with the effective practices of the sustainability,
the financial as well as natural resource management practices can be effectively done, which
will indirectly help to drive the attention lf thee potential customers.
Disclosure 302-1
Energy consumption within the organization
Analyzing the second media release practices of Timberwell, it has been identified that in
order to enhance the capabilities of individuals, the energy efficiency strategy has been
introduced by Timberwell. Depending on the sustainable strategies, the company can be able to
manage the excessive consumption rate of non-renewable sources as well as electricity. By
reducing the consumption rate of fuel, Timberwell aims to bring the environmental sustainability
and drive the attention towards renewable energy sources. In the below calculation, the energy
consumption rate has been introduced, which has been recommended by Australian Department
of Industry and Science
1. Consumption of fuel from non-renewable sources- 1.0
Gigajoule
2. Fuel consumption from renewable sources -0.5 Gigajoules
3. Consumption of Electricity -2.0 Gigajoules
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Important note: 1 Gigajoule = 109 joules
(Source: Organisation Case Study – Timberwell Constructions)
Disclosure 304-2
Significant impacts of activities, products, and services on biodiversity
By indicating the Environmental Impact Assessment guideline, sustainable development
plan has been introduced by Timberwell Constructions in Otford Park. It has been identified that
rare breed wallum sedge frogs are available in this area, which has significant impact on
conserving the biodiversity. In order to improve the biodiversity conservation process in more
effective manner, the company has introduced various initiatives by maintaining the business as
well as community requirements. By taking the assistance from the Stanwell Council and various
environmental groups, the global goals of Timberwell towards conserving the biodiversity have
been fulfilled.
Disclosure 307-1
Non-compliance with environmental laws and regulations
Another complaint has been done by Dennis against the Timberwell for clearing off 0.45
hectares of coastal grasslands, which is occupied by the critically endangered spices. These
species have high biological value and the importance of these endangered spices for
maintaining biodiversity is really strong. Without maintaining the environmental guidelines, the
company has implemented its strategies, which has got negative feedbacks from the customers.
Due to weak environmental development plan, $200,000 has been compensate by the company.
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due to violating the environmental norms, the rehabilitation as well as vegetation management
plan of the company faced the loss of $440,000.
Social sustainability
Social sustainability practices contributes in the society and well-being of individuals. In
order to achieve the social sustainability, the personal as well as professional needs of
individuals are being fulfilled (Hollander et al. 2016). It is true that depending on the social
sustainability guidelines, the business performance as well as employee turnover in an
organization can gets influenced. By ensuring the good performance of the individuals, brand
reputation as well as mental and psychical health of the employees can be properly maintained
by the organizations. Human rights, anti-discrimination, employee standard, quality management
and organizational culture have strong influencing factors of social sustainability. It cannot be
denied that in order to bring the proper collaboration between the employees, employers and
customers, it is very important for the organizations to follow the social sustainability guidelines.
Disclosure 401-1
New employee hires and employee turnover
Analyzing the competitive business scenario in construction industry, Timberwell has
started the recruitment practices and 12 novice and 58 male stuffs have been appointed. As the
17 employees of Timberwell left the job, in this situation avoiding the employee turnover has
become necessary for Timberwel for avoiding the threats from new entrants. In order to retain
employees, the organization has decided to introduce an effective wages structure, in which
increasing the pay rate, the company has tried to retain the employees.
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Disclosure 406-1
Incidents of discrimination and corrective actions taken
Examining the organizational culture of Timberwell, it can be said that age
discrimination is one of the important cultural issues, which has increased the dissatisfaction
among the employees in this organization. Dennis has alleged that due to his age, humiliating
jokes from the coworkers disappoints him. After this situation $4400 has been claimed by
Dennis from Timberwell. The commission ordered the company to update the anti-
discrimination policy by providing the effective training to the employees.
Disclosure 413-1
Operations with local community engagement, impact assessments, and development
programs
Due to increasing global warming the climatic change has become major barriers for
construction companies. In this situation the professional site mangers of Timberwell have
suggested to search new places for constriction business so that safety measures can be
effectively implemented and business profitability can be gained. By designing the effective
town planning layout, the cost effective construction projects can be developed (Epstein, 2018).
However, in order to implement the initiative, it is very important for the company to increase
the engagement of local community. In this situation the management is expecting to fulfill the
demand of cost effective residential projects so that by following the GRI standards the social
responsibilities can be increased.
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Conclusion
In this study it can be concluded that the sustainability pillars have high impact on
influencing the business practices of an organization. Sustainability initiatives are very important
to be adopted by the organizations so that long term business benefits as well as performance
standard can be maintained. Analyzing the current position of Timberwell, it cannot be denied
that in case of increasing the accountability and long term sustainability in this market,
sustainability guidelines are needed to be effectively followed by the company. GRI guidelines
are needed to be effectively implemented in Timberwell, so that the numbers of allegations can
be reduced.
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