Disclosure 201-2 Financial implications and other risks and opportunities due to climate change
The GRI standards (Global Reporting Initiative) are focused on developing sustainable reporting through the utilization of interrelated structure on a range of economic, environmental and social impacts. The organization, Timberwell Constructions, faced different issues relating to the improper reporting, which affected the management of the same as per the sustainable approach of the firm. On the other hand, the smooth functioning of the systems of the business operations are based on understanding the risks and opportunities of the venture. The GRI standards also assist the business in identifying the financial and non-financial performance of the same as it influences strategy and policy.
The purpose of the report is to identify the different issues that are faced by the concerned organization, Timberwell Constructions, and the manner in which the GRI standards are helping the same in mitigating the issues relating to economic, environmental and social sustainability. It will be helping to identify the different situations in which the standards might be applied by the organizational management in order to ensure the sustainability of the same while operating in the diverse situations.
The disclosure aims at identifying the different impacts of climate change on the organizational functioning through risks and opportunities to organizations and their stakeholders (Leszczynska, 2012). Mostly the government bodies regulate the activities that might contribute to the climate change. In several cases, organizations are held responsible for the different emissions. On the other hand, the regulatory actions of the government might cost the organizations and result to regulatory risks. Risks might also affect the competitiveness of the business while operating in the diverse market scenarios. The report is recommended to include the different aspects of capital and operational costs incurred by the organization, the demand for products and service propositions and capital availability (Klettner, Clarke & Boersma, 2014). The utilization of the reporting standard will be assisting the organization in delineating risk or opportunity through physical, regulatory, or other. On the other hand, the adherence to the GRI standards will be helping the organization in maintaining the efficacy of the same while managing the different risks or opportunities through delineation of the required costs. The Stanwell Council proposed to amend LEP as ‘bushfire prone’. The new developments that are to be conducted in the area was required to meet the higher standards for the developments through the inclusion of larger distances between buildings and land boundaries. The concerned organization, Timberwell Constructions, has developed a site in the region, which was required to be rezoned under the LEP amendment. The costs that might be incurred by the organization were assumed to be around $4 million. Thereby the company faced a risk while adhering to the changes as per the regulations that are set by the government authorities.
Disclosure 205-3 Confirmed incidents of corruption and actions taken
The disclosure aims at identifying the concerns of the stakeholders and the organization’s response to the different incidents (Manetti & Toccafondi, 2012). The legal cases relating to corruption in the workforce affects the proper functioning of the systems of the business operations per the sustainable approach of the same. Therefore, the GRI reporting must include the different aspects of confirmed incidents in which employees were dismissed for corruption. On the other hand, the report must also include cases where the contracts with business partners were terminated due to violation and corruption of agreements (MILNE, Gray & BUHR, 2014). Thereby the Disclosure 205-3 clearly delineates the position of the organization in the market environment through the identification of the policies that are framed by the organization and steps taken by the same to mitigate the corruption. The concerned organization faced a public corruption scandal involving five employees and two business partners. The complaint suspected that the accused personnel bribed the council project officers in order to gain approval for the developments of the organization. The employees were suspended without pay by the organization in order to adhere to the sustainable approach of the business. The exposition of the reporting standards on the organizational structure has helped the same in maintaining the efficacy of the functions as per the objectives of the business.
The disclosure aims at identifying the different legal actions that are initiated by national or international laws. The laws are designed with the purpose of assessing and regulating anti-competitive behavior, anti-trust, or monopoly practices. The practices might affects the choice of the consumers, pricing of the commodities and different other factors as per the market environment (Searcy, 2012). The disclosure also aimed at identifying the different legal actions that are pending or completed during the reporting period of the organization. It helps the organization in maintaining their sustainability approach while operating in diverse market scenarios. The organization also faced an issue due to complain from an employee named Dennis to a number of government authorities. The Australian Competition and Consumer Commission (ACCC) initiated proceedings in the Federal Court against Timberwell Constructions for anti-competitive conduct. The organization was accused of being involved in the misutilization of market power and exclusive dealings. It has affected the smooth functioning of the business while operating in the diverse market situations. The key elements of change in the organizational functioning and the policies that are framed by the business in order to shape the likelihood of their product and service offerings are based on the legislation (Marimon et al., 2012). The disclosure under the GRI standards also emphasizes on the identification of different completed legal actions that are undertaken by organizations that might include decisions and judgment of the firms.
Disclosure 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
The organization faced an issue relating to the complain that was lodged by Dennis to the Department of the Environment and Energy relating to the organizational operations on clearing of 0.45 hectares of critically endangered coastal grasslands. The government authorities imposed a fine amounting to $200,000, which has affected the organizational functioning while operating smoothly as per the objectives of the same.
Disclosure 302-1 Energy consumption within the organization
Reporting on the source of energy utilized by the organizations is an important aspect that influences the sustainable approach of the businesses. The identification of the different sources of energy that is utilized by the organization and optimization of the same through adhering to the diverse range of standards that are set by the business has affected the proper functioning of the systems as per the objectives of the firm’s capabilities (Perego & Kolk, 2012). The utilization of the renewable and non- renewable sources of energy helps the same in upholding the efficacy of the functions as per the legal bindings and the CSR. Emissions from the organizational functioning adversely affect the community in which the organization undertakes the operations (Lee & Saen, 2012). Therefore, organizations are required to follow the disclosure under the GRI standards of reporting in order to make the relevant stakeholders aware of the practices that are undertaken by the same.
Disclosure 304-2 Significant impacts of activities, products, and services on biodiversity
The disclosure aims at understanding the different aspects of direct and indirect influences that affects the biodiversity of the region. The disclosure under the GRI standards helps organizations in maintaining the efficacy of the functions through assessment on the size, scale and nature of impacts (Fonseca, McAllister & Fitzpatrick, 2014). As for the case, the functions undertaken by Timberwell have affected the biodiversity of the coastal grassland region. It has affected the sustainable approach of the business while disregarding the different policies that are framed by the government agencies. The consideration of the diverse environmental factors relating to the markets and the assessment of the impacts of the products and services on the biodiversity helps the organizations in improving their processes to suit the requirements of the communities (Hahn & Kühnen, 2013). On the other hand, the concerns relating to conservation of biodiversity is adhered by the organization through assessment of the diverse range of impacts created by the products and services offered by the firms.
Environmental sustainability
Disclosure 307-1 Non-compliance with environmental laws and regulations
The disclosure aims at maintaining the different performance standards in the organizational context. The application of non- compliance and other legal obligations are supported by the suitable implementation of the disclosure in the functioning of the firm’s operations as per the objectives of the business (Junior, Best & Cotter, 2014). On the other hand, the different legislative bindings that are faced by the organizations while operating in the diverse markets affects the proper functioning of the business systems while operating in diverse scenarios (Hahn & Lülfs, 2014). The State Planning Scheme identified that Timberwell cleared a coastal grassland which was believed to be a source of rich flora and fauna. Timberwell’s non- compliance with environmental laws and regulations resulted to the organization being ordered by the government authorities to undertake an audit program for a rehabilitation plan with a cost of around $440,000. It affected the smooth functioning of the business through lack of resources. The identification of the different legislative bindings helps the organizations in understanding the different operations that might be undertaken by the same in order to support its expansion.
Disclosure 401-1 New employee hires and employee turnover
The different aspects of change in the organizational context are based on the retention of the employees. Timberwell Constructions employed 58 male staff who is skilled in the profession of construction and development departments. The recruitment system of the organization portrayed a prejudiced approach of employing male candidates, disregarding the professional talent of the female candidates. On the other hand, most of the employees in the organization left the same due to payroll related issues and the lower grade of compensation that was provided to them. It affected the employee satisfaction thereby resulted to depreciating productivity of the business. The consideration of the age, gender and region of the candidates while undertaking recruitments will be helping the organizations in maintaining the smooth functioning of the processes through minimization of the staff turnover ratio. On the other hand, the disclosure aims at maintaining the efficacy of the organizations while choosing the appropriate workforce (Eccles et al., 2012). Age and gender differences in the workforce creates a negative impact on the processes that is planned buy the businesses. It affects the sustainability of the same while operating in the diverse markets. The disclosure also identifies those different age groups that might be considered by the organization in order to maintain the uniformity of the human labors in the business operations (Vigneau, Humphreys & Moon, 2015). It will be helping the firm in avoiding different clashes in the workforce emerging from the age and gender differences.
Disclosure 302-1 Energy consumption within the organization
Disclosure 406-1 Incidents of discrimination and corrective actions taken
The disclosure aims at highlighting the different aspects of change in the organizational policies in order to mitigate and avoid situations relating to discrimination in the workforce for the smooth functioning of the systems as per the objectives of the business (del Mar Alonso?Almeida, Llach & Marimon, 2014). Dennis McCabe filed a claim against the organization related to workplace harassment in the Fair Work Commission. The claim that was forwarded by Dennis was based on the discrimination that he faced while working in the organization related to his age. It affected the organizational functioning through the clashes in the workplace. The organization had to pay Dennis $4,400 as compensation. However, the lack of suitable policies will be affecting the smooth functioning of the organization in future. Discrimination in the grounds of race, color, sex, religion, political opinion and the like might affect the involvement of the employees and result to prejudices in the management of the business. It affects the workflow, which affects the sustainable approach of the firms. The disclosure clearly exemplifies the different aspects of discrimination that might affect the organizational performance through clashes among the employees and the management.
Disclosure 413-1 Operations with local community engagement, impact assessments, and development programs
The disclosure emphasizes on the needs of organizational planning in order to enhance the operations as per the objectives of sustainability. The assessment of the external and internal environments, as portrayed in the disclosure, will be helping the firms in maintaining their performance (Fernandez-Feijoo, Romero & Ruiz, 2014). The concerned organization failed to encourage the involvement of the local communities in the practices that are framed by the same. it has affected the proper functioning of business operations while operating in the diverse situations. It will also be helping the organizations in encouraging the involvement of the stakeholders in the processes through a clear understanding of the concerns of the same. The stakeholder’s engagement in the organizational processes will be helping the business in maximizing the opportunities of the same while operating in the diverse market situations. On the other hand, the assessment of the relevant risks that might be faced by the organization through consultation of the stakeholders will be helping the business in establishing positive relations with the stakeholders for the benefits of the firm.
Conclusion
Therefore, from the above analysis it can be stated that the identification of the GRI standards and thereby implementing the same on the organizational functioning will be helping the business in maintaining their performance and sustainability. The standards aim at attaining the three step sustainable approach of the organizations in economic, environmental and social aspects. The implementation of the GRI standards helps organizations in maintaining the best practice of the operations as per the objectives of organizational sustainability in different market situations.
References
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