Question 1 (Case study 11.

2)
The company that employs you is a manufacturing firm. It is
considering following the lead of DSM and developing some
performance indicators to tie executive bonuses to environmental
performance. Outline what some for these might be.

Energy usage and savings

Greenhouse gas emissions
Reduction in waste
Product development that minimizes environmental impacts

Document measures of performance relating to social issues, such

as employee and consumer relations that should also be considered.
Explain answer.

Employee injury rates

Employee satisfaction
Investments in community activity
Stakeholder management indicators
Consumer complaint

Question 2:
Global factors influencing quantity, quality and format of
sustainability reporting:
No international mandatory reporting
Lack of global consensus about reporting
Free rider and public good problem
International organisations encouraging sustainability
reporting
No globally accepted reporting format
GFC
Consumer sustainability reporting appetite
Australian factors influencing quantity, quality and format of
sustainability reporting:
Need to comply with certain federal legislation and regulations
Enforcement of legislation and regulations
Policy instability
Free rider and public good problem
Consumer pressure
Limited mandatory reporting
No generally accepted reporting format
Government grants, tax incentives, fines
High GDP per capita

Question 3:
Voluntary VS Mandatory disclosure
Mandatory:
Corporations act 2001 companys performance in relation to
environmental regulations
Other legislation requiring disclosure e.g. national greenhouse
and energy reporting act (NGER Act 2007)
Australian accounting standards
Voluntary:
Strategic decision
Cost VS Benefits
Reporting frameworks:
GRI sustainability reporting guidelines - BHP
(IR) integrated reporting framework
Australian packaging covenant
Similar companies reports
International best practice
Assurances?
Coles green supply chain management

Question 4
(a) 1. Objectives (AFS p.16) the primary objective of Wesfarmers
is to provide a satisfactory return to our shareholders
2. Core values (AFS P.16)
Integrity, openness, accountability, boldness
3. Strategies (AFS p.16)
Strengthen existing businesses through operating excellence
and satisfying customer needs
Secure growth opportunities through entrepreneurial initiative
Renew the portfolio through value-adding transactions
Ensure sustainability through responsible long-term
management

(b) Websites: stakeholder engagement Wesfarmers website

Customers
Employees
Shareholders
Suppliers
Government
Non-government organisations
Media
Community
Stakeholder engagement survey
(c) - Governance section in the SR refers back to the corporate
governance statement and other sections in the AFS
- The corporate governance statement refers to sustainability
issues
- Other governance mechanisms are indirectly
(d)AFS: indirect linkages between risk and sustainability as
follows
Reference to damage to brands
Reference to non-compliance with regulations
Corporate governance statement
- Group compliance program which includes guidelines and
standards directly covering sustainability issues such as the
environment
(e) GRI sustainability reporting guidelines 3
Division re members of the LBG
Australia packaging covenant