Governance, Ethics, And Sustainability For Efficient Markets

Describe the Governance, Ethics and Sustainability For Efficient Markets.

The report contains the set of GRI disclosure regarding the sustainability reporting standards for Timberwell Construction. The report has been prepared with the standards issued in compliance with the Global Sustainability Board. The report provides the foundations for application to make use of the GRI standards in order to report regarding the economic, environmental and social impact (Tricker and Tricker 2015). The GRI standards forms the part of common language for Timberwell Construction and its stakeolders through which the economic, environmental and social impact on the organisation can be understood and communicated.

Timber well construction in compliance with the risk and opportunities posed by the climate change that have the potential to generate substantive amount of changes in operations, revenue and expenses. Timber well construction provides the description of the risk or opportunity and its classification as either in the form of physical and regulatory. In regard to the global warming impacts on climate changes and the increased risk of bushfires the Stanwell council lays down the proposal relating to the amendments of local environmental plan so that it can rezone the specific areas in the Stanwell Districts as the “bush fire prone”.

Timberwell at the time of compiling the information specified in the Disclosure 201-2 Timber well constructions has the development site in the Stanwell district that is located in an area that will be rezoned as the bushfire prone under the LEP amendment (Dimopoulos and Wagner 2016). The new regulations could cost Timberwell not more than $4 million to comply with. Other risk and opportunities can be taken into the considerations with the availability of the new technology or services to consider the challenges related to the climate changes as well as the changes in the customer behaviour.

Timber well as one of the reporting organizations reports the following information with the total number and nature of confirmed incidents of corruptions. Timberwell have undertaken the public relations campaign in order to address a great deal of negative publicity. To bolster the public image of Timberwell constructions the company has issued a series of media release that is intended to demonstrate that the company is a good corporate citizen. For stakeholders, there is an interest in both the occurrence of incidents and Timberwell constructions to respond to the incidents (Denis 2016).

Public legal cases concerning corruption can take account of public investigations, prosecutions or closed cases. Timberwell takes into the account the total number of confirmed incidents where employees were dismissed for disciplinary corruptions. Timberwell accounts for the total number of confirmed incidents when the business contracts with their business partners were terminated or were not renewed because of the violations resulting from corruptions. The media release considers the public legal cases concerning corruption that was bought against the organization or its employees during the reporting period and the outcomes leading to such cases. 

Environmental Sustainability

Timber well construction reports the total number of legal actions pending or completed at the time of reporting period concerning the anti-competitive behaviour along with the violations of anti-trust and monopoly legislation where the organisations have been recognised as the participant. A series of complaints were lodged to a number of government authorities about Timber well operations. This disclosure relates to the legal actions, which is initiated under the national, or international laws that is designed primarily with the objective of regulating anti-competitive behaviour, anti-trust or monopolies practices (Van Grembergen and De Haes 2017). Anti-competitive behaviour or monopoly practices can create an impact on the choice of the consumer, pricing and other factors, which is essential to the efficient markets.

Legal actions indicated that Timberwell had engaged in this conduct with the objective of deterring or preventing a new entrant in the development market at the Stanwell district or substantially reducing the competition in that market. In compliance to the disclosure 206-1 legal actions for anti-competitive behaviour, the case is listed to be heard by the Federal court in four months time. Lawful decisions arising out of such situations carry the risk of significant amount of disruptions to the market activities of the organization together with the punitive measures.

Disclosure 302-1 is concerned with the consumptions of energy within the organization where the reporting organization reports the total amount of fuel consumption within the organization from the non-renewable sources. In a media release, Timberwell Constructions has stated to be an energy efficient organization. For Timberwell electricity forms the most significant form of energy, which they consume.

Non-renewable fuel sources consist of fuel for combustion in boilers, furnaces, heaters, turbines and vehicles that is controlled by the organization (Acharya et al. 2013). Non-renewable fuel sources consist of the sources that are covered by Timberwell construction. They also consist of the fuel generated by the activities of the organization such as mined coal or gas from oil and gas extraction. In the latest media release for the Timberwell construction, it had explained that the company has applied a program to raise its fuel consumptions from the renewable source of energy to at least 50% of its entire fuel consumption in a time of next three years. At the time of compelling information specified in Disclosure 302-1 Timberwell applies the conservation factors consistently by disclosing the data.

In compliance with the reporting requirements of 304-1 operational sites owned, that is managed or adjacent to the protected areas and the areas of high biodiversity value. Timberwell monitors the activities that takes place in both the protected areas as well as the areas of high biodiversity value, which is outside the protected areas making it possible for the organization to reduce the risk of impact. It makes it possible for the organization to administer the impact on biodiversity or to keep away from mismanagement (Iliev et al. 2015).

Disclosure 205-3: Confined incidents of corruptions and actions taken

Timberwell construction in compliance to the latest media release has stated that the company undertakes considerable amount of expenditure to indulge in the program of local communities, performing impact assessments and undertakes the initiatives for formulating the social development programs for the proposed residential developments. This kind of disclosure by Timberwell lays down the background for understanding the organizations strategy to mitigate significant amount of direct and indirect effects on the biodiversity. By offering the structured and qualitative information, such disclosure enables Timberwell construction to compare the relative size, scale and nature of impacts over the period of time and across the company.

The reporting organization reports significant amount of fines and non-monetary sanctions relating to non-compliance with the environmental laws or regulations in terms of the total monetary value of such fines. At the time of compiling information that is specified in Disclosure 307-1, the reporting organization must include administrative and judicial sanctions for failure to comply with the environmental laws and regulations. This consists of the international declarations, conventions and treaties relating to national, sub-national, regional and local regulations (Ioannou and Serafeim 2016). After the investigation conducted by the department, a fine of $200,000 was imposed on, Timberwell for clearing 0.45 hectares of critically endangered ecological community coastal grasslands.

The department of environment stated that the cleared area was identified under the state-planning scheme for preserving the important flora and fauna attributes. Non-compliance within Timberwell can reflect the ability of management in assuring that the operations conform to the certain performance parameters (Hahn and Kühnen 2013). In few circumstances, non-compliance on the part of Timberwell constructions may result in the clean up obligations or any other costly environmental liabilities. The strength of Timberwell compliance record may also create an impact on the operations and expansion of the organization.

At the time of compiling the information that is specified in the disclosure 401-1 the reporting organization must make the use of total employee numbers at the end of the reporting period so that it can calculate the rates of new employee hired and employee turnover.

Timberwell at the time of compiling the information specified in Disclosure 401-1 it makes the use of data from the disclosure 102-7 in GRI 102 relating to the general disclosure of identifying the total number of employees (Fonseca et al. 2014). Timberwell employs 58 male staff from the area having different construction related trades and professions. The local market for these workers is highly competitive and Timberwell during the reporting period has employed 12 new apprentices. This is because seventeen employers have left the employment and in compliance with the disclosure requirements of 401-1, Timberwell construction has increased the pay rates of the workers. Furthermore, it has also applied a monthly roster day off to retain the existing staff. A high rate of employer turnover may reflect the levels of uncertainty and instances of dissatisfaction among the employees. Therefore, employee turnover can reflect a fundamental change in the structure of the core operations of the organization.

Disclosure 206-1: Legal actions for anti-competitive behavior, anti-trust and monopoly practices

Timberwell being the reporting organization reports the total number of incidents that takes place during the reporting period. The company provides the status concerning the incidents along with the actions taken with reference to the incidents that is reviewed by the organisation. At the time of compiling, the information laid down in disclosure 406-1 Timberwell being the reporting organisation takes into the considerations the incidents of discrimination (Fassin 2015).

One of the employees resigned and filled a workplace harassment claim to the fair work commission by stating that he was discriminated on the grounds of his age. Furthermore, the employee alleged that he was the target of humiliating age related jokes from the other employees. The claim was upheld by the fair work commissioner and was awarded a compensation (Milne and Gray 2013). Timberwell remediate plans that have been applied and reviews the results through the help of internal management processes. The existence and effective application of rules helps in avoiding discrimination and forms the basic prospects of socially responsible conduct.

The reporting organisation reports the percentage of operations, which is applied with the local community engagement, impact assessment and programs for development. This consists of the social impact assessment along with the environmental impact assessment and assessment of social impact (Junior, Best and Cotter 2014). In the media release of Timberwell Construction, it provided the explanation on the performance of the environmental impact assessment.

Timberwell discovered that the development site at Otford Park was populated with rare wallum sedge frog. In its media release, Timberwell had estimated that the medium density residential development was proposed for the site, which would irrevocably change the habitation and render inconsistent with the survival of the frog on the area. Timberwell in its latest media release had stated that it has devised a strategy with the objective of managing the proposed development of the area along with the conservation of the wallum frog. Timber well considers the key element in administering the impact on the people in the local communities is the assessment and planning so that it can understand the actual and the potential impacts with local communities to understand their needs. Wherever possible, Timberwell is expected to anticipate and side step the negative effect on the local communities.

Conclusion:

The sustainability report based on the GRI standards of Timberwell construction provides a balanced and reasonable representation of the company’s both positive and negative contributions towards the goal of sustainability development. The information that is made available through the help of sustainability reporting allows both the external and the internal stakeholders to make an opinion. Furthermore, the GRI reporting enables them to make informed decisions regarding the Timberwell construction contribution to the goal of the sustainable development. 

Reference List:

Acharya, V.V., Gottschalg, O.F., Hahn, M. and Kehoe, C., 2013. Corporate governance and value creation: Evidence from private equity. Review of Financial Studies, 26(2), pp.368-402.

Denis, D., 2016. Corporate Governance and the Goal of the Firm: In Defense of Shareholder Wealth Maximization. Financial Review, 51(4), pp.467-480.

Dimopoulos, T. and Wagner, H.F., 2016. Corporate Governance and CEO Turnover Decisions.

Fassin, Y., 2015, July. The Status of CSR and Sustainability Reporting at Universities in Europe: a Survey. In Proceedings of the International Association for Business and Society (Vol. 26, pp. 179-191).

Fonseca, A., McAllister, M.L. and Fitzpatrick, P., 2014. Sustainability reporting among mining corporations: a constructive critique of the GRI approach. Journal of Cleaner Production, 84, pp.70-83.

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.

Iliev, P., Lins, K.V., Miller, D.P. and Roth, L., 2015. Shareholder voting and corporate governance around the world. Review of Financial Studies, 28(8), pp.2167-2202.

Ioannou, I. and Serafeim, G., 2016. The consequences of mandatory corporate sustainability reporting: evidence from four countries.

Junior, R.M., Best, P.J. and Cotter, J., 2014. Sustainability reporting and assurance: a historical analysis on a world-wide phenomenon. Journal of Business Ethics, 120(1), pp.1-11.

Milne, M.J. and Gray, R., 2013. W (h) ither ecology? The triple bottom line, the global reporting initiative, and corporate sustainability reporting. Journal of business ethics, 118(1), pp.13-29.

Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices. Oxford University Press, USA.

Van Grembergen, W. and De Haes, S., 2017, January. Introduction to IT Governance and Its Mechanisms Minitrack. In Proceedings of the 50th Hawaii International Conference on System Sciences.