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MBA402 Governance, Ethics, And Sustainability Report

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Question:

You must then prepare a sustainability assessment report referring to the Consolidated Set of GRI Sustainability Reporting Standards 2016 that specifically addresses:
A. Economic sustainability
 
i) Disclosure 201-2 Financial implications and other risks and opportunities due to climate change
ii) Disclosure 205-3 Confirmed incidents of corruption and actions taken
iii) Disclosure 206-1 Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices
 
B. Environmental sustainability
 
i) Disclosure 302-1 Energy consumption within the organisation
ii) Disclosure 304-2 Significant impacts of activities, products, and services on biodiversity
iii) Disclosure 307-1 Non-compliance with environmental laws and regulations Assessment Information
 
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.
 
C. Social sustainability
 
i) Disclosure 401-1 New employee hires and employee turnover
ii) Disclosure 406-1 Incidents of discrimination and corrective actions taken
iii) Disclosure 413-1 Operations with local community engagement, impact assessments, and development programs.
 
 

Question:

Introduction:

Organisation sustainability is one of the major development aspects of the productive nature of the organisation in case of employees’ engagement and productivity. There are some situations where business dealings are not justified their places and that create a problem for the company as well as for employees. Some rules are needed to be revised as the report detailing form the commission are not highlighted at the same impactful in each case. Timberwall Construction had 58 male pieces of stuff in trades and professionals but 17 employees have left the company due to some reasons, so there was a critical situation of customer retention and fair work culture. The same allegation had come from one of the employees and government had taken some effective measures in this case. An anti-discrimination policy, anti-competitive conducts, corruption, environment sustainability issues are highlighted in this aspect. There are some public relation campaigns that Timberwall Construction has to do to showcase their sustainability in the environment and their policies need to be revised and formulated as per the norms of Global Reporting Initiative.

The report highlights the foundation of all those processes of general disclosure and management approach. All these policies are revised and updated with the new rules and that will strengthen economic, environmental and social aspects. The foundation process covers stakeholders' inclusiveness, materiality, completeness, sustainability contest of the company so that balance organisation operation process will sustain.   

Sustainability assessment process

The financial implication is an investment for the long-term business process as the company will follow the directive for long and make it more formative for infrastructural investment. The risk and opportunities will come in case of financial implementation and direct and indirect operation process impacted in that case. The capital and operation cost will be impacted in that case (Norton, Zacher and Ashkanasy 2014). The demand for products and services will be affected in case of financial implication. If the process formulated in a better way then, Timberwall Construction did not take any bribe for other companies and allegation will not be imposed over them. The methods of managing the risk and opportunity will be:

Carbon storage and structure

Improve energy efficiency

Use of carbon affects

Use of renewable energy

Flaring, expelling and fugitive emission

Fuel switching

Renewable energy certificate

All these reasons are effective enough to change the climate. The government ensures different environmental projects to make a limitation of greenhouse gases but all these improvements are not effectively regulated through the methods. Sustainability reportage can assist governments to measure, appreciate and connect their economic, conservational, and communal and supremacy performance, and then customary goals, and achieve alteration more efficiently (Shen and Benson 2016). The report also highlights the decision making of CSR and the process develops sustainable economy as well.

 

Corruption mitigation actions

Corruption needs to be mitigated for the esteem of the organisation and also ensure stakeholders are not harmed due to that reason. Timberwall Construction has some issues with corruption as Dennis McCabe alleged that five employees were accused and they have taken the bribe from two external consultants (Michelon, Pilonato and Ricceri 2015). The corruption level needs to be stopped as the public legal cases are harmful for the organisation and their activities. The investment, prosecution and closed cases are defied with collected combat form of corruption. The GRI 2016, provide the broader aspect of the operating environment and cultural investment of proactive collaboration needs to be there (Ekvilib.org 2016). The trade union, civil society or the public sector cases are different in case of combat corruption but the process of bribery, fraud, extortion, collusion money laundering cases are considered as the improper advantage the employees as well as company wants to pursue from external sources. As stated by Blackburn (2012) that impacts on the business model, reputation and the economic and environmental ability depends on objective setting. The GRI standard impacts on the positive and negative aspect of the achievement of objectives, but the corruption is considered as the negative one (Ekvilib.org 2016).

Some legal actions are required in that case for the mitigation of corruption, anti-trust and monopoly practices. It affects customer choice and business will be lost their establishment if they directed their minds towards corrupted behaviour. As mentioned by Varsei et al. (2014), the market action, in that case, is risk-oriented also as the transaction or the process needed to be hidden. This is not the way of development. There is some interpersonal gap between employees as courted people are not present in every section of the department, they are few in numbers but the situation confronted by the company is only because of the people. Recognise legal activities undecided or finished in the reporting session about anti-competitive conduct and defilements of anti-trust and monopoly legislature in which the organization has been recognised as an applicant (Jensen and Berg 2012). Anti-competitive behaviour sometimes reacts in a judgemental way and that is the reason most of the companies try to develop the infrastructural advancement of the company some employees are eliminated due to this process.

Environment Sustainability

Energy consumption is specified by the use of fuel and companies are using such things for their development in production. The adaptation in change climate is the crucial aspect that highlighted by the UN Global Compact in 2007 (Ekvilib.org 2016). The situation has not been changed though as the energy transition process needs a large amount of fuel and burn those fuel will highlight the imbalance in the environment. The process of energy audit shows directive applications and also states proper practices that can curtail the energy consumption. The process of green IT solution is important in that case and companies try to maintain the thing (Hahn and Kühnen 2013). Timberwell Constructions feels the same situation but they do not have the alternative process to mitigate the situation. Dwindling traditional fuel sources for transportation modes are important in that case and global change in environment is liable for that. The process of global warming is measured by the fuel consumption and the undesired elements evolved by that process (Hemmati 2012). The energy intensity is low in 2017 compared to past years.

Years

Energy Intensity Per Capita (MWH)

Trajectory

2014

2.7

2.80

2015

2.7

2.77

2016

2.2

2.72

2017

2.1

2.68


The change in energy intensity is the kind of improvement through the process as companies decide to decrease their carbon intensity and focused on the renewable energy process (Paillé, Boiral and Chen 2013). The energy capacity is also important and that surfaced over the target. In 2017, 34% energy efficiency stored in that process and that is the reason collaborative group registration or the recycling process of management (Ekvilib.org 2016). Total energy consumption is the accumulation of non-renewable fuel consumed, renewable fuel consumed, electricity, heating, cooling, and steam purchased consumption and the self-generated process of consuming.

 

Significant impacts of activities, products, and services on biodiversity

GRI standards levelled some developing understanding for activities, service and biodiversity. The process of bio-diversity is impacting on nature and their surroundings as well. The structural disclosure helps the entire process. Timberwell Constructions need to follow that process and consider the supply chain in a designed way in business (Higgins, Stubbs and Love 2014). In the case of biodiversity, pollution control, pest control, change in habitat, transport infrastructure all these activities redesigned and revised so that negative impacts will be less. The policy will also cover the equality so that Dennis will not face the same situation again. The problem related to the age and discrimination regarding this aspect needs to be stopped. The service process of the company is dealing with the construction issues. Thus, the situation in stakeholders association and the anti-discrimination process of accumulating all the stakeholders and allow their reputation to impose on (Ekvilib.org 2016). Fair commission process needs to introduce in that case so that Timberwell Constructions has the fair rules of termination and recruitment. The declared amount of $4,400 was not be given to Dennis if fair rules were maintained. Thus the process of global emission needs to be curtailed in a proper way so that better percentage of renewable energy sustains.

Noncompliance process deals with significant mechanism and section of laws support the entire process. The regulation will help the scenario and the process is valid for the national, sub-national, regional and local regulations. The monetary value of significant fines is unnecessary and that can be easily avoided. The process of equality and uphold all the authorities were set by the government is the concerned process of service evaluation and maintenance. Non-compliance in an organization can designate the aptitude of the organisation to confirm that procedures adapt to certain presentation limits (Lozano 2013). In some conditions, non-compliance can prime to clean-up responsibilities or additional overpriced ecological accountabilities, thus the situation will be prolonged in that process. The jurisdiction, voluntary environment and nature of the work are important in that case and that somehow related to the operational activities.

 

Social Sustainability

  1. Recruitment and termination of employees

Recruitment is one of the most important and development aspect of the organisation and there are several strategies to recruit a person. The major aspect, in that case, is the legitimate use of testing those employees before delivering the job role. As commented by Hahn and Lülfs (2014) the way of termination is also important as employee engagement is being broken on that part. The recruitment process has segregated in three sections like under 30 years, 30-50 years and over 50 years (Ekvilib.org 2016). The age is the crucial aspect in that case and optimal use of practice and recruitment base is the key approach that signifies labour talent of different sections. The approach in payroll and employees' equity is workplace is important. The approach of experience people engagement is the key scene in that case and employees leave the organisation due to several reasons. Termination process is not going be any drastic decision form the management rather they have to be very clear about their decision and there are some effective reasons must be there about policy.

  1. Discrimination and cohesive actions

Discrimination in the organisation is not a development aspect for the organisation. The process decreases the momentum of productivity as the employees will not get proper respect from the rest of their colleagues. Local government has taken some steps for the equity maintenance and development of workplace community. As highlighted by Contrafatto and Burns (2013) the social cohesion is one of those implementations that understand the community objectives and build a partnership between key stakeholders. This is an engagement that mitigates the process of racism and builds an effective team for the development of the work (Ekvilib.org 2016). Through the process of monitoring, some evaluative outcomes have come and that is the reason future development of the community will happen. Local government set of rules also have some key steps like measure social cohesion, commit to social cohesive as priority, assess readiness and build capacity is the way to fulfil the objectives in organisation policies achievements (Lodhia, Jacobs and Park 2012). At the process of discrimination, employees will find speculated in the organisation, thus training and development aspects are needed for the employees. In such a particular case better understating with employees may curtail the situation and maintain a good behaviour and relation between them.

  • Local community engagement operation and development programmes

In the case of local communities, stakeholders association and engage them or the development of the organisation will help the productive nature of the organisation. The managed risk procedure and community impact with engaged individual rights are important for the collective rights of employees. There are some local community programmes for the employees' engagement and that will initiate worker representation for the development of the organisation (Susanne Johansen and Ellerup Nielsen 2012). Development programmes are initiated by the government. The seminars, soft skill development process, proper mapping for community development and communication advancement in business are the most important aspect of strengthening the process and employees will have a better outcome through the process.

 

Conclusion 

Therefore it can be concluded that in the case of organisation sustainability, socio-demographic infrastructure all these processes operate in a proximate way to development. If all the operational process is in order, thus it will be maintained in a proper way and local communities and employees’ engagement will furnish. Timberwall Construction has issued in employees' engagement and stakeholder commitment may break through the process, thus a good association is needed in that case for the development of organisation and to become free form those allegations.

 

References

Blackburn, W.R., 2012. The sustainability handbook: The complete management guide to achieving social, economic and environmental responsibility. Routledge.

Contrafatto, M. and Burns, J., 2013. Social and environmental accounting, organisational change and management accounting: A processual view. Management Accounting Research, 24(4), pp.349-365.

Dashwood, H.S., 2012. CSR norms and organizational learning in the mining sector. Corporate Governance: The international journal of business in society, 12(1), pp.118-138.

Ekvilib.org 2016 CONSOLIDATED SET OF GRI SUSTAINABILITY REPORTING STANDARDS 2016 retrieved from: https://www.ekvilib.org/wp-content/uploads/2018/03/GRI-standardi-2016.pdf [Accessed on 3rd September, 2018]

Hahn, R. and Kühnen, M., 2013. Determinants of sustainability reporting: a review of results, trends, theory, and opportunities in an expanding field of research. Journal of cleaner production, 59, pp.5-21.

Hahn, R. and Lülfs, R., 2014. Legitimizing negative aspects of GRI-oriented sustainability reporting: A qualitative analysis of corporate disclosure strategies. Journal of business ethics, 123(3), pp.401-420.

Hemmati, M., 2012. Multi-stakeholder processes for governance and sustainability: beyond deadlock and conflict. Routledge.

Higgins, C., Stubbs, W. and Love, T., 2014. Walking the talk (s): Organisational narratives of integrated reporting. Accounting, Auditing & Accountability Journal, 27(7), pp.1090-1119.

Jensen, J.C. and Berg, N., 2012. Determinants of traditional sustainability reporting versus integrated reporting. An institutionalist approach. Business Strategy and the Environment, 21(5), pp.299-316.

Lodhia, S., Jacobs, K. and Park, Y.J., 2012. Driving public sector environmental reporting: the disclosure practices of Australian Commonwealth departments. Public Management Review, 14(5), pp.631-647

Lozano, R., 2013. Are companies planning their organisational changes for corporate sustainability? An analysis of three case studies on resistance to change and their strategies to overcome it. Corporate Social Responsibility and Environmental Management, 20(5), pp.275-295.

Michelon, G., Pilonato, S. and Ricceri, F., 2015. CSR reporting practices and the quality of disclosure: An empirical analysis. Critical Perspectives on Accounting, 33, pp.59-78.

Norton, T.A., Zacher, H. and Ashkanasy, N.M., 2014. Organisational sustainability policies and employee green behaviour: The mediating role of work climate perceptions. Journal of Environmental Psychology, 38, pp.49-54.

Paillé, P., Boiral, O. and Chen, Y., 2013. Linking environmental management practices and organizational citizenship behaviour for the environment: a social exchange perspective. The International Journal of Human Resource Management, 24(18), pp.3552-3575.

Shen, J. and Benson, J., 2016. When CSR is a social norm: How socially responsible human resource management affects employee work behaviour. Journal of Management, 42(6), pp.1723-1746.

Susanne Johansen, T. and Ellerup Nielsen, A., 2012. CSR in corporate self-storying–legitimacy as a question of differentiation and conformity. Corporate communications: an international journal, 17(4), pp.434-448.

Varsei, M., Soosay, C., Fahimnia, B. and Sarkis, J., 2014. Framing the sustainability performance of supply chains with multidimensional indicators. Supply Chain Management: An International Journal, 19(3), pp.242-257.

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