The GRI (global reporting initiative) involve various standards of reporting that applies a common language for stakeholders and firms that communicate the environmental, economic and social impacts to make easy understanding (Boiral, 2013, p.1054). The standards are meant to enhance the quality and comparability of data on the impacts to enable greater accountability and transparency. This report evaluates the use of GRI reporting on Timberwell Constructions Company.
Timberwell Constructions is a company which deals with building residential and apartment estates in the district of Stanwell Council. The economic sustainability of Timberwell Constructions according to GRI, (Global Reporting Initiative) standards is the effects of the company on economic situations of the stakeholders as well as an economic position at local, state and global sizes (Brown, de Jong, and Levy, 2009, p.574). In the current reporting period, Timberwell faced a number of regulatory, physical and other risks requiring corrective actions and some capital outlay.
i.Disclosure 201-2: Financial Implications of Climate Change:
There is a high risk of bushfire occurring brought upon by climate change and its warming effects. The council is working to ensure some of the areas are identified to be prone to bushfires and given much attention. The change in the local environment plan will be effective in six weeks’ time. The locations which will be identified to be prone to the bushfires will be required to adhere to the safety regulations to be executed. New buildings will be constructed far from the areas to keep bigger distances and the companies will be required to apply substances which are retardant during the building process to avoid incidents of fire. This will largely reduce the fire outbreaks which affects biodiversity in the affected areas (GSSB, 2018, p.174). This had a financial influence on the company as the money which was paid as fine could be utilized in another area of construction in building apartments. The company ended up using money which had not been planned for thus affecting the operation of Timberwell Constructions. It lost $4 million and $50,000 as offsetting costs on consultancy fee.
Any short-term outlay pursuing this goal should be balanced by future economies in fuel supply. Another report from the media indicated that Timberwell Constructions incurred more expenses in the process of involving the local society, formulating and performing evaluations and programs which were aimed at ensuring developments of residential apartments are carried properly (Hahn, and Lülfs, 2014, p. 412).
There were other opportunities and risks which the company had to incur like the new technology used in the construction industry to ensure climate change is addressed effectively (Etzion, and Ferraro, 2010, p.1098). One of them is the plan to increase the use of renewable sources of energy to reduce climate change. All the stakeholders are affected by climate change and need to look for ways of reducing it and ensure they are implemented fully. The government through the regulatory authorities is also supposed to ensure the companies adhere to the set rules to curb climate change.
ii. Disclosure 205-3: Confirmed incidents of corruption and actions taken:
During the current reporting period, the state Corruption Commission has charged five Timberwell employees and one external consultation with offering bribes to council project officers, in order to facilitate council planning approval. Pending the outcome of the court is, the five employees concerned have been suspended without pay.
Timberwell has terminated its partnership with the mentioned external consultant, plus another consultant named in the Commission inquiry. These corrective actions are intended as a warning to other employees and partners and should satisfy all relevant stakeholders in the company, regarding Timberwell’s commitment to high ethical standards in all the company’s dealings. It was also a good step in ensuring the reputation of the company is maintained and not ruined by a few individuals and external business associates (Fonseca, et al. 2011, p.34). The national corruption commission was mandated to carry out the investigations and determine those found guilty in the scandal where proper measures would be taken. All the stakeholders in the company have interest in the way the company deals with the reaction of the corruption scandals recorded. Timberwell Constructions can opt to handle the corruption cases through prosecutions of the involved individuals as well as carrying state investigations to get those engaged in the misconduct.
iii. Disclosure 206-1: Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices:
There were legal actions for anti-competitive behaviour, monopoly and ant-trust practices which were reported in Timberwell Constructions. One of the many complaints reported by one the employee to the government bodies given authority to deal with is a case where there was power misuse of market and dealings which promoted anti-competitive practices. The consumer and competition commission of Australia handed over the case to the federal court which was to carry out investigations and determine the case involving Timberwell Constructions (Fonseca, McAllister, and Fitzpatrick, 2014, p.76). The consumer and competition commission stated that Timberwell Constructions knowingly tried to prevent another company in the same line of the industry from entering into the market. This was aimed at ensuring no competing company is established in the area to avoid competition with Timbewell Constructions.
The company has built various commercial complexes in the Stanwell district and has a continuing development site in the same area without following any environmental standards. Being a bushfire prone area, the city council requires that the company apply the requirements of LEP (local environmental plan). The top executive members of Timberwell Constructions warned the contractors and suppliers who would get involved in establishing the new competing company that they were to have their business activities withdrawn or decreased from Timberwell constructions. The commission declared that all these were done to prevent any new entry of a new company into existence in the area (GSSB, 2018, p.174). This would eventually decrease competition in the industry as Timberwell Constructions would dominate Stanwell district thus promoting monopoly. All these and other related cases were to be handled by the federal court responsible and give their verdict in a period of four months.
Environmental sustainability action for companies helps them in making decisions that reduce the negative impacts of businesses on the environment, such as pollution and climate change (Etzion, and Ferraro, 2010, p.1102). The practices also help companies in gaining a competitive advantage in the global economy.
i) Disclosure 302-1: Energy consumption within the organisation:
There were also media reports which described how the company consumed energy in its operations and it clearly showed the company is efficient. Timberwell Constructions used electricity, renewable and non-renewable sources of energy to carry out daily activities. Timberwell has set an ambitious target of sourcing 50% of its fuel consumption from renewable sources. This was an opportunity in that when the company increases its use of renewable energy, more industries would get the opportunity of producing the energy to supply to Timberwell Constructions (Eccles, Krzus, Rogers, and Serafeim, 2012, p.68).
There are media reports which were released to show how energy consumption within the company is used and the future plans being put in place. The report indicated that Timberwell Constructions is efficient in the way it consumes energy in its operations. The energy used from non-renewable sources showed one unit of gigajoule was used which translates to one billion joules of energy. On the other hand of renewable sources of energy, a total of half gigajoules was used translating to five hundred million joules of energy (Hahn, and Lülfs, 2014, p. 412).
The company also consumed electricity totalling to two gigajoules which is two billion joules of energy. Therefore, in total Timberwell Constructions consumed three point five billion joules of energy on carrying its operations. The company was in the process of executing a strategy which was aimed at ensuring renewable sources of energy are increased to half of its total usage in the company in a span of three years to promote reduce and curb climate change (Isaksson, and Steimle, 2009, p.172)
ii) Disclosure 304-2: Significant impacts of activities, products, and services on biodiversity:
Timberwell Constructions had used a piece of land which was grasslands in the coast region. This was a risk to the animals which lived in the grasslands and therefore Timberwell Constructions was endangering the animals. The company cleared 0.45 of a hectare to extend its company operations affecting plants and animals attributes in the region. The Environmental and energy department ordered Timberwell to pay a fine of two hundred thousand dollars and in addition, the company was to undertake a vegetation management plan, extend the audit programs for workers and a rehabilitation plan costing $440,000.
There are significant impacts of products, services and activities on biodiversity which Timberwell Constructions needs to look at to ensure the life of plants and animals is secure. The company is working hand in hand with Stanwell district council to ensure changes of LEP; (Local Environment Plan) is followed. All these finances were not planned for and influenced the company negatively to meet the needs and became risks to the company. Timberwell Constructions was directly impacted by raising the fines and the other finances in executing the rehabilitation strategy leading to increased expenses in the company.
The solution for this is ensuring that proper budgeting is done for every financial use or project. All projects need to comply with the various standards such as the LEP, welfare standards and minimize corruption cases that lead to unnecessary fines (GSSB, 2018, p.174). The company needs to have a department that checks on these issues.
iii) Disclosure 307-1: Non-compliance with environmental laws and regulations:
Non-compliance with environmental regulations and laws can be very costly to the company Timberwell Constructions is required to adhere the laws in place set by local environment plan to ensure its operations run effectively (Lozano, and Huisingh, 2011, p.104). However, Timberwell construction neglected this responsibility by clearing so much of coastal grasslands endangering animals and plants.
The local environment plan has set a fine, which the company is required to adhere and is costing Timberwell Constructions four million dollars. This is a large amount of money and becomes a financial constraint to the company which has engaged a planning company to reduce the cost which is levying fifty thousand dollars to offer the planning services. This clearly shows the company needs to meet the regulations to continue with its operations despite a large amount of money required.
Social sustainability action helps companies to check and control the negative impacts of operations on the people. These include issues that ensure the welfare of the people including workers and the community is maintained (Lozano, and Huisingh, 2011, p.104). It ensures good wages for employees and employment for the local area near the company premises. The comfort of people in the area is promoted.
i) Disclosure 401-1: New employee hires and employee turnover:
There is new employee hires and employee turnover in Timberwell Constructions where the company recruits fifty-eight male employees within the area who have various construction occupations and other related. The company hired twelve new trainees during the reporting period due to the fact that seventeen of its workers left the company to start their own business or be employed by rival institutions. Most of the employees in the company fall in the age group of thirty to fifty years (Manetti, and Becatti, 2009, p.292).
ii) Disclosure 406-1: Incidents of discrimination and corrective actions are taken.
There are discrimination incidents which have been reported in the company and corrective actions taken. One of the employees in Timberwell Constructions resigned due to discrimination in the workplace. The given worker stated that he was harassed by fellow workmates due to his age. The employee said in the entire company that he was the only one aged over fifty years since all the other workers ranged between thirty and fifty years.
The commission responsible for fair work approved the claim of the employee and directed the company to pay him four thousand and four hundred dollars as compensation. The commission further went ahead and instructed the company to revise the anti-discrimination system and offer training to its workers (Milne, and Gray, 2013, p.22).
iii) Disclosure 413-1: Operations with local community engagement, impact assessments, and development programs:
The company had initiatives which were purposed to engage the people in the ensuring apartments constructed are affordable to the local community and promote housing in the region. All these initiatives and programs required finances and increased the company expenses. Timberwell Constructions formulates and performs assessments for the environment, meetings with local society in developing the community to get affordable residential services. This will help the local society acquire housing at a cheaper price and promote their housing standards which eventually promotes their living standards. The people in the locality will want to associate with the company and easily allow its operations in the area because of the benefits they get. Provision of employment opportunities as well as affordable housing will make the local community appreciate the company and work peacefully (Etzion, and Ferraro, 2010, p.1102).
Conclusion:
The company has been affected by economic, social and environmental factors that have seen it lose a lot of money in terms of fines. This happened after the company has cleared land to expand affecting the climate. The company had initiatives which were purposed to engage the people in the ensuring apartments constructed are affordable to the local community and promote housing in the region. The company has also employed workers, dealt with discrimination cases and provident employment opportunities, as well as affordable housing, will make the local community appreciate the company and work peacefully. Timberwell Constructions can opt to handle the corruption cases through prosecutions of the involved individuals as well as carrying state investigations to get those engaged in the misconduct. These are all according to the GRI sustainability standards on reporting.
References
Boiral, O., 2013. ‘Sustainability reports as simulacra? A counter-account of A and A+ GRI reports’, Accounting, Auditing & Accountability Journal, 26(7), pp.1036-1071.
Brown, H.S, de Jong, M. and Levy, D.L, 2009,‘Building institutions based on information disclosure: lessons from GRI’s sustainability reporting’, Journal of Cleaner Production, vol. 17, no. 6, pp.571-580.
Eccles, R.G., Krzus, M.P., Rogers, J. and Serafeim, G., 2012. ‘The need for sector?specific materiality and sustainability reporting standards’, Journal of Applied Corporate Finance, 24(2), pp.65-71.
Etzion, D. and Ferraro, F., 2010,The role of analogy in the institutionalization of sustainability reporting. Organization Science, 21(5), pp.1092-1107.
Fonseca, A., Macdonald, A., Dandy, E. and Valenti, P., 2011. The state of sustainability reporting at Canadian universities. International Journal of Sustainability in Higher Education, 12(1), pp.22-40.
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.
GSSB (2018). GRI Standards. [online] Ekvilib.org. Available at: https://www.ekvilib.org/wp-content/uploads/2018/03/GRI-standardi-2016.pdf ,pp.100-244.
Hahn, R. and Lülfs, R., 2014. ‘Legitimizing negative aspects in GRI-oriented sustainability reporting: A qualitative analysis of corporate disclosure strategies’, Journal of business ethics, 123(3), pp.401-420.
Isaksson, R. and Steimle, U., 2009. ‘What does GRI-reporting tell us about corporate sustainability’, The TQM Journal, 21(2), pp.168-181.
Lozano, R. and Huisingh, D., 2011. ‘Inter-linking issues and dimensions in sustainability reporting’, Journal of cleaner production, 19(2), pp.99-107.
Manetti, G. and Becatti, L., 2009. ‘Assurance services for sustainability reports: Standards and empirical evidence,’ Journal of Business Ethics, 87(1), pp.289-298.
Milne, M.J. and Gray, R., 2013. W (h) itherecology? ‘The triple bottom line, the global reporting initiative, and corporate sustainability reporting’, Journal of business ethics, 118(1), pp.13-29
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