University : Kaplan Business School UniLearnO is not sponsored or endorsed by this college or university.
Subject Code : MBA402
Assignment Task:

Your Task 
You are required to watch the following YouTube clips from the GRI Secretariat: 
1. The GRI Sustainability Reporting Standards: The Future of Reporting 
 
2. Introducing the GRI Standards 

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


Assessment Instructions 
You must prepare a sustainability assessment report for McGruder Industries referring to the  Consolidated Set of GRI Sustainability Reporting Standards 2016 that specifically addresses: 
A. Economic sustainability 
i) Disclosure 201-4 Financial assistance received from the government 
ii) Disclosure 203-1 Infrastructure Investments and services supported 
iii) Disclosure 204-1 Proportion of spending on local suppliers 
B. Environmental sustainability 
i) Disclosure 301-1 Materials used by weight or volume 
ii) Disclosure 301-2 Recycled input materials used 
iii) Disclosure 306-3 Significant spills 
C. Social sustainability 
i) Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labour ii) Disclosure 412-2 Employee training on human rights policies or procedures 
iii) Disclosure 417-3 Incidents of non-compliance concerning marketing communications
You will be required to include a minimum of 5 references in your Sustainability Assessment Report which  must come from academic journals or textbooks. 
A Message from the CEO 
  
Dear Employees, 
I wish to personally thank you for your professionalism and continued dedication to McGruder Industries.  Last year was certainly the most challenging year our company has faced in its proud history and I would  like to take this opportunity to dispel some of the rumours circulating around some of the issues that  arose. 
Obviously, the most serious matter for McGruder Industries was the media investigation into the ongoing  use of child labour in Somali manufacturing facilities.The investigation revealed that one of our suppliers,  Fabian Ltd, engaged manufacturers in Somalia that employ child labour to produce their products. This  situation was not known to us and was a clear breach of our supply contract with Fabian Ltd. We therefore  terminated our contract with Fabian Ltd. 
The good news is we were able to find a replacement supplier relatively quickly – a local supplier that  operates within our own metropolitan area. This new local supplier means that our percentage of products  and services purchased locally has risen to 75% of our total procurement budget. Plus the materials from  our new supplier are both renewable and recyclable which means our total weight for non-renewable  materials has decreased to 55 tonnes while our total weight for renewable materials has increased to 45  tonnes. And our total weight for recycled input materials has increased to 25 tonnes. 
The second serious issue faced by McGruder Industries this year was the Australian Competition and  Consumer Commission (ACCC) investigation into our recent marketing communications. The investigation  found that McGruder Industries had engaged in false and misleading conduct and issued an Infringement  Notice with a penalty of $12,600. McGruder Industries paid the fine and updated our marketing policies to  ensure future compliance with all Australian Consumer Law provisions. 
The third serious issue was a significant fuel spill at our warehouse in Flintoff, Victoria. Approximately 8  kilolitres of fuel spilled from a rupture in one of the fuel tanks into the soil around its base. The spill soaked  directly into the ground and we have sprayed the affected area with liquid hydrocarbon-eating bacteria to  remediate the soil. It has certainly been a challenging year for us but we all must remember there have  been some great wins too. The Federal Government awarded our organisation with a $15 million research  and development grant that we will use to continue our breakthrough research into biotechnology.  
This was also the year we completed our $10 million health and welfare centre project in Esperance,  Western Australia. This centre will provide much needed support to families coping with a range of social  issues completely free of charge. It is an extremely worthy initiative and demonstrates our clear  commitment to the social well-being of those that are less fortunate in our community. 
Finally, our employee training program on human rights was launched this year and has already  completed 100 hours of training on aspects of human rights that are relevant to our operations. This  means that 35% of our employees have been trained in human rights principles ranging from gender  equality to human dignity and respect. 
With your continued hard work and support I am extremely confident that McGruder Industries can build  further upon our success in the coming year. 
 

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