Tramalway Industries Case Study On Sustainability Standards

Question

Task: You are required to watch the following YouTube clips from the GRI Secretariat:

1. The GRI Sustainability Reporting Standards: The Future of Reporting
https://www.youtube.com/watch?v=AGqE4OO0_7g&t=3s

2. Introducing the GRI Standards
https://www.youtube.com/watch?v=RDe8Kkh1BrU&t=2s

You must also read the Message from the CEO of fictional company Tramalway Industries. You must then prepare a sustainability assessment report for Tramalway Industries.

Answer

Introduction
The assessment report has followed the GRI Sustainability Reporting Standards 2016 based on the analysis of the Tramalway Industries Case study. The CEO of the company Phil Tramalway has left a message for all the employees related to it with a remarkable contribution. The CEO has narrated entire issues and its outcomes whatever the company has implemented further to improve those issues. However, the Tramalway Industries Case studyanalysis is like a guideline Moreover, an analysis of GRI Standards including economic, environmental and vital social sustainability management required by Tramalway. The GRI Sustainability Reporting Standards have been using by numerous organizations above 90 countries to report about the impacts on the environment, economy and society publicly. It helps the organization toward the achievement of goals of sustainable development. Reporting to these impacts help to reach out to the stakeholders toward the goals of sustainable development. The widely used sustainability reporting guidelines have been amended since 2000 GRI Standards(Al-Shaer and Zaman, 2016). This report on Tramalway Industries Case study analysis has been prepared for guiding the Tramalway Industries of its sustainability as it has faced a loss in the economic, environmental and social issues. The company has finally decided to train their employees with every aspect of the human rights related to the operations and principles of the human rights including the ethics and governance ranging from gender equality toward the human dignity and human respect.

GRI Sustainability Reporting Standard on the Economic Sustainability
The economic sustainability standard in the context of given Tramalway Industries Case study has followed three disclosures including 201-4 for the financial assistance analysis of Tramalway, 203-1 for the part of Infrastructure Investments, 204-1 for the role of expenses on local suppliers by Tramalway Industries.

Disclosure 201-4 based on the financial assistance received from the government government
Tramway Industries has confronted the issue of an infringement penalty worth $12,600 by the Australian Competition and Consumer Commission (ACCC) (Bellantuono, Pontrandolfo and Scozzi, 2016). Herein Tramalway Industries Case studyanalysis, it has been alleged to fraudulent activities, especially in the field of recent marketing communication that has complained that the company is engaged in dishonest conduct. Hence, the company has to pay the penalty by updating the assurance of the marketing policies complied with the Australian Consumer Law Provisions. The Federal Government has awarded the company of $15 million in the research & development field and continuous growth in the biotechnology research.

In regards to the Tramalway Industries Case study, the company is required to claim and report with having followed certain norms and information as per the Disclosure 201-4, are mentioned below –

1. The readings of the Tramalway Industries Case studysignifies that Tramway must report the information of total financial value assistance received by any government throughout reporting including

• Report of relief of taxation, based on the credits of tax.
• Report for subsidies or financial support (Boiral and Heras-Saizarbitoria, 2017).
• Any is granting for the investments, in the field of research & development grants, and related other types of gifts.
• Awards
• Holidays royalty
• ECAs provided any financial assistance
• Incentives in finance.
• Financial benefits received from any government for the operation.

2. Country information in 201-4.
3.To the extent where any government is related in the shareholding structure.
According to the guidance for Tramalway Industries Case study, the disclosure should be measured by the government contribution to an organizationChristensen, 2016). The financial assistance received from the government compared to the paid taxes can be used in the development of balance structure and transaction between the government and the organization.

Disclosure 203-1 based on the Infrastructure investments and services supported
Tramway has penalized against the allegation of misleading conduct in marketing communication and fraudulent behaviour in the discussion of $12,600. It has to pay the fine, and immense loss confrontation came in its way. Also, it has invested in the welfare and health project based in Dolan Bay, South Africa, with $10 million that has assisted the company in getting free from all the charges related to the social issues (De Villiers and Sharma, 2017).

Tramway must follow the requirements of reporting according to the disclosure 203-1 mentioned below within this Tramalway Industries Case studyanalysis–

1. The development area for the share of essential infrastructure investments and support services.
2. Present and future impacts on the local communities and the finances relevant to the positive and negative effects.
3. In case of commercial investments and services with the type of pro bono engagements.

2.1 Based on the Tramalway Industries Case study, the reporting recommendation for Tramalway in 203-1 should disclose –
2.1.1 The dimension, value and duration for each significant infrastructure investments and support services.
2.1.2. The range that is related to the different communities and economics locally receiving the impacts on the infrastructure investments of the organization and supporting services (Den?i?-Mihajlov and Zeranski, 2018).

The guidance of this disclosure assessed the severe concern on its stakeholders and the economy. The impact can be extended out of scope from the organization's operations. It can be included in the transport facilities, health and welfare centres, sports centres and measuring the capital economic contribution of the organization.

Disclosure 204-1 based on the Proportion of spending on local suppliers
Tramalway has undergone financial depressions with the issue of child labour emerging by the media. The actual investigation has reported that one of the suppliers of Tramalway namely Golden Goods Ltd. has secretly employed child labour for the manufacturing facilities, and that was unknown to the Tramalway and complete infringement of its supply contract (Gallego-Álvarez, Lozano and Rodríguez-Rosa, 2018). Later Tramalway has to terminate the business relationship with that supplier and find a new supplier instead. 75% has increased out of total purchase within the budget procurement for the Tramalway from the supplier within the purpose of products and services.

According to disclosure 204-1, the reporting requirements for Tramalway has mentioned below within this Tramalway Industries Case studyanalysis–

1. The procurement budget percentage has to be mentioned applied for the significant locations of operation and at the same time spend on the local suppliers for that operation, i.e. the interest of the local purchasing of the products and services.
2. The ‘local’ geographical definition supporting evidence of the company.
3. The definition used in the ‘significant locations of operation.

The reporting recommendationbased on the Tramalway Industries Case study to Tramalway Industries has been specified in the disclosure 204-1 in which the organization has to estimate the percentages depends on the invoices during the periods used for the accrual accounting (Gürtürk and Hahn, 2016). The guidelines define that the local supplier supporting is effective in additional investment instead of attracting the local economy. The local sourcing helped to support supply and stabilized a local economy maintaining the community relations.

GRI Sustainability Reporting Standard on the Environmental Sustainability
Tramalway has confronted enormous damage toward the environment as the environmental sustainability was disrupted with a significant issue rapture of fuel in the warehouse in Chemora, Queensland. The ecological effect was surrounded to a vast area approximately eight kiloliters fuel were spilt from that rupture from one of the fuel tanks and spread around the soil bases and soaked directly in the soil and ground (Klychova et al., 2019). The enormous soil damage was recovered by the company by spraying liquid hydrocarbon eating bacteria. It was a great challenge for the company for several years. Against it, the company has received a donation for the research & development and the biotechnology development of $15 million from the government itself. It has later on coped with such social issues with free of cost and completed the project in South Africa at Dolan Bay with the health and welfare project.

The economic sustainability as per the GRI Standards has been used, including disclosure 301-1, 301-2, and 306-3.

Disclosure 301-1 based on Materials used by weight or volume
As per the reporting requirements the information should be mentioned –

• Total weight or volume of the used materials produce or packaged by the organization in the elementary stage of products and services during the period of –

1. Non-renewable matters utilized
2. Renewable matters utilized (Kocami? and Yildirim, 2016).
The new suppliers provided both renewable and recycled products in which 55 tons of non-renewable from the total weight has decreased, and overall weight for the renewable matters increased to 45 tons and total weight recycled input increased to 25 tons.

2.1 The company is recommended to follow the below information in reporting 301-1
2.1.1.1. The conversion of the products and services by the natural resources or raw matters including the minerals, ores and the wood.
2.1.1.2. Associated materials in need of the manufacturing process for the product last part (Laskar and Maji, 2016).
2.1.1.3. Semi-manufactured goods, including all forms of materials other than the raw materials for the previous part.
2.1.2. Report for the types of purchased external suppliers sourced internally.
2.1.3. Description of the data estimated to the source for directly measured.>
2.1.4. Requiring the calculation, the method used is to be reported.

i) Disclosure 301-2 based on the recycled used input materials
a. The recycled input materials used in percentage in manufacturing the elementary products and services of the organization.

2.2. The reporting should be followed the mentioned information below –
2.2.1. Uses of total weight & volume for the matters specified in the disclosure 301-1
2.2.2. Estimated recycled input matters percentage utilized with the formula application (Michalczuk and Konarzewska, 2018).
Percentage of recycled input materials utilized =
Total recycled input materials used / total input materials used X 100

ii) Disclosure 306-3 based on the Significant Spills
Tramalway has derived some major spills while the issues aroused with the rapture of oils in the ground from one of the tanks. The organization is required to report such information including –

a. Recorded total amount or volume of significant spills.
b. The additional information regarding the financial statements including –

• Spills spot
• Spills volume
• Spill materials, including the category of oil spills, fuel spills, waste spills, chemical spills and other and all are related to the soil or water surfaces (Pavaloaia et al., 2017).
• The effectiveness of the significant spills.

What is the role of GRI Sustainability Reporting Standard on the Social Sustainability in regards to the Tramalway Industries Case study?

It has to follow the GRI Standards, including 408-1, 412-2, and 417-3 disclosures.
Tramalway has gone under the social reputation damage, and it was unknown to the company as one of the suppliers were accused by the media to employ the child labour in the Bangladeshi manufacturing facilities. The suppliers breached the contract supply norms with the company (Stolowy and Paugam, 2018).

Disclosure 408-1 based on the Organizations and suppliers at the significant risk for the child labour incident
The organization reporting outlined in the associated Tramalway Industries Case study must include –

a. Operations and the suppliers having engaged in the significant risks in the incidents of
• Child labour
• Exposure of the young labours in the rigorous work.
b. The child labour significant risks in terms of
• Operation type and supplier
• Countries in the geographical areas with considered risk with operations and suppliers.
c. The measurement undertaken in the reporting period contributed to the abolition of child labour (Torelli, Balluchi and Furlotti, 2020).

The guidance for this disclosure requires drawing the data from international sources like the ILO information and report on the application of Conventions and Recommendations.

Disclosure 412-2 based on Employee training on human rights policies and procedures
Tramalway has undertaken the employee training program based on the awareness of human rights that is has launched recently. It has applied already 100 hours of training schedule related to the operations. It means 35% of employee training, including the human rights principles surrounding gender equality, and human dignity.

The disclosure 412-2 requires reporting –
a. Duration of reporting period total number contributed to the training on the human rights policy and procedure related to the operations.

b. The employee percentage during the training of human rights policy and procedure with the concerning aspects of human rights related to the operations (Tost, et al., 2018).

The guidance for the disclosure considering the Tramalway Industries Case study should be reported as per the GRI 404 Training and Education disclosure with the total number of hours for the employee training allotted.

Disclosure 417-3 based on the Incidents of non-compliance marketing communication Tramalway must report the information including –

a. The number of total incidents of the non-compliance regulations and voluntary codes concerned to the marketing communications under the advertising, promotion and sponsorship.

• The incidents related to the penalty of the non-compliance regulations.
• Incidents of non-compliance with resulting the warning with regulations.
• Incidents with the voluntary codes of the non-compliance.

2.2. The organization shall report the information
2.2.1. Incidents excluded from the non-compliance with the organizational determination to be a fault.
2.2.2. The applicable identity with the occurrences of the non-compliance events related to the prior period of the reporting.

Conclusion
The report has analyzed the Tramalway Industries Case study and the entire GRI Reporting Sustainability Standards 2016 with addressing the environmental, economic, and social sustainability based on the Tramalway Industries Case study. The company has been affected by each aspect mentioned as the disclosure and recommendation to follow the company in the aboveTramalway Industries Case study analysis. Following those disclosures, the company will be helpful to maintain sustainability.

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