tilaar regina 3410562 (assignment 2)
TRANSCRIPT
2015
RMIT University
Author:
Regina Edith Fabianie Tilaar
3410562
Lecturer:
Sophia Ji
Word Count:
2,970
Wave Master Limited
ii
Executive Summary
This report was written in order to provide significant and sufficient information of
sustainability reporting for Wave Master Limited [WML]. It discussed the stages of
producing a sustainability report. The four stages are why, who, what, and how. In the
first stage, the ethical branch of Stakeholder Theory and the accountability model were
introduced as to answer why WML should provide voluntary disclosure in the form of
sustainability report. The next stage discussed about to whom the information targeted
to. This report also identified WML’s primary and secondary stakeholders.
In the third stage, it discussed about what are the impacts of WML’s current operations.
Lastly, this report recommended GRI as the reporting tool that best fit WML. Following
the guidelines from GRI, this report discussed the General and Specific Standard
Disclosures in relation to WML’s current operations. The indicators of the guideline
were also discussed in this report, providing guidance for WML in how to report the
impacts caused by its operations. Additionally, this report also discussed about the
future implications should WML decided to move the surfboard manufacture to China.
Table of Contents
1. Introduction ..................................................................................................................................................... 1
1.1. Purpose ..................................................................................................................................................... 1
1.2. Scopes ........................................................................................................................................................ 1
1.3. Assumptions ............................................................................................................................................ 1
1.4. Limitations ............................................................................................................................................... 1
2. Discussion ......................................................................................................................................................... 1
2.1. The Stages of Sustainability Reporting ......................................................................................... 1
2.1.1. The Why Stage ............................................................................................................................... 1
2.1.1.1. Stakeholder Theory ................................................................................................................ 2
2.1.1.2. The Ethical Branch of Stakeholder Theory ................................................................... 2
2.1.1.3. The Accountability Model .................................................................................................... 3
2.1.2. The Who Stage ............................................................................................................................... 3
2.1.2.1. Stakeholders Identification ................................................................................................. 4
2.1.2.2. WML’s Stakeholder List ........................................................................................................ 5
2.1.3. The What Stage ............................................................................................................................. 6
2.1.3.1. Stakeholder Engagement ..................................................................................................... 6
2.1.3.2. Identification of the Information ...................................................................................... 6
2.1.4. The How Stage ............................................................................................................................... 7
2.1.4.1. About GRI.................................................................................................................................... 8
2.1.4.2. ‘In accordance’ Option ........................................................................................................... 8
2.1.4.3. General Standard Disclosures ............................................................................................ 8
2.1.4.4. Specific Standard Disclosures ............................................................................................ 8
2.1.4.4.1. Economic ................................................................................................................................ 9
2.1.4.4.2. Environmental ..................................................................................................................... 9
2.1.4.4.3. Social ..................................................................................................................................... 10
2.2. Future Implications ........................................................................................................................... 11
3. Conclusion ...................................................................................................................................................... 12
Reference ................................................................................................................................................................. 13
APPENDIX 1: General Standard Disclosures ............................................................................................. 16
APPENDIX 2: Specific Standard Disclosures.............................................................................................. 16
APPENDIX 3: Economic Dimension .............................................................................................................. 16
APPENDIX 4: Environment Dimension ....................................................................................................... 18
APPENDIX 5: Social Dimension – Labour Practice and Decent Work ............................................. 19
APPENDIX 6: Social Dimension – Human Rights ..................................................................................... 21
APPENDIX 7: Social Dimension – Society ................................................................................................... 21
APPENDIX 8: Social Dimension – Product Responsibility ................................................................... 22
List of Tables
Table 1 – WML’s Stakeholders
Abbreviations
CCA – Climate Change Authority
ENGO – Environmental Non-government Organisation
GRI – Global Reporting Initiative
SR – Sustainability Report
ST – Stakeholder Theory
WML – Wave Master Limited
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1. Introduction
1.1. Purpose
The purpose of the report is to provide significant and sufficient information to
WML concerning producing SR.
1.2. Scopes
The ethical branch of ST.
Surf industry in Australia.
1.3. Assumptions
WML is new to sustainability reporting.
The stakeholders have current expectations in social and environmental
information and this expectation would not change for the time being.
1.4. Limitations
The stakeholders’ expectations change over time due to particular events.
The recommendations made in this report are only applicable to businesses
in surf industry in Australia and are solely based on the ethical branch of ST.
2. Discussion
2.1. The Stages of Sustainability Reporting
2.1.1. The Why Stage
As sustainability reporting is currently a voluntary practice, assessing the
question why an organisation publicly disclose information regarding its social
and environmental performance is a necessary first step. Therefore, it is also
necessary for WML to take this step before building a sustainability report. Thus,
in order to answer the question, this report agrees with the ST, specifically with
the ethical branch of the theory.
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2.1.1.1. Stakeholder Theory
Stakeholder Theory, as a ‘theory of organisations’, acknowledges
relational model of an organisation. That is, it focuses on how an
organisation interacts with particular stakeholders, including addressing
various issues related to consideration of stakeholders’ rights,
stakeholders’ power or the effective management of stakeholders
(Pesqueux & Damak‐Ayadi 2005).
The term stakeholder was first introduced in 1963 and was
meant to generalise the notion of stockholder, which refers to the only
group that organisations should be responsive to; the group without
whose support the organisation will cease to exist (Freeman et al. 2010).
Therefore, stakeholders are defined as any identifiable group or
individual who can affect or be affected by the achievement of an
organisation’s objectives (Deegan 2014b, p. 372). This definition is closely
related to the ethical branch of ST.
2.1.1.2. The Ethical Branch of Stakeholder Theory
The ethical branch of ST carries a moral perspective. As a
normative perspective, this branch prescribes that all stakeholders have
equal rights that must not be violated and they should be treated fairly by
an organisation. Therefore, issues regarding stakeholder power are not
relevant. Moreover, Hasnas (1998), states that this branch implies that
business has social responsibilities, which means that the organisation
has fiduciary relationship with its stakeholders thus management should
manage the business for the benefit of all stakeholders. As a result, the
organisation is deemed as a vehicle that coordinates stakeholders’
interests and the management should attain an optimal balance when
conflicts arise between the interests (cited in Deegan 2014b, p. 373).
Following the implication regarding the equal rights of
stakeholders, this perspective also implies that all stakeholders have the
right to be provided with information about the effects of the
organisation’s everyday activities on them, regardless whether they do
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not have direct impact on the survival of the organisation. In return,
stakeholders might be able to influence an organisation to account for
decisions impacting their lives (O'Dwyer 2005). Additionally, ethical
reasoning of corporate social responsibility portrays business
organisations “as being moral, and doing what is right, just and fair”
(Jamali 2008, p. 215), therefore it is expected that business organisations
to respect people, avoid social harm and preventing social injury. Thus,
the answer to why WML provides SR is because it embraces ethical
reasoning. That is, WML is motivated by the desire to minimise the
negative or maximise the positive impact of its operations on social and
environmental.
2.1.1.3. The Accountability Model
In support with the ethical branch, the accountability of business
must also be concerned when deliberating what motivates managers to
provide voluntary reporting. The accountability model was developed by
Gray, Owen and Adams in 1996 (cited in Deegan 2014b, p. 374). The
model indicates that an organisation has the duty to provide an account
or reckoning of its actions for which it is held responsible. The duties are:
[1] to be responsible of certain action, or refrain from taking actions and
[2] to be responsible to provide an account to the undertaken actions.
Hence, corporate report is considered to be responsibility-driven, to the
extent of informing the society about which actions for which an
organisation is deemed to be responsible have been fulfilled. Thus, WML
is accountable for its actions and therefore extending the responsibility
beyond the traditional role of providing a financial account is significant
in accordance to the accountability model (Deegan 2014a).
2.1.2. The Who Stage
Having considered why an organisation provides SR, the next step is to
identify who the stakeholders are and to determine to whom the report will be
targeted to. Determining this step is directly related to the why issues. Therefore,
identifying the stakeholders will be based on the ethical branch of ST.
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2.1.2.1. Stakeholders Identification
Following the ethical branch, a wider range of stakeholders will be
considered. Thus, the organisations providing sustainability report
motivated by ethical reason should take account of the views and needs of
all stakeholders, whom might affect or be affected by their operations. For
example, an organisation should consider every person and entity,
including all elements of nature, from current and future generations who
are affected by the negative or positive impact of its operation as
stakeholders. Therefore, the organisation will prioritise the stakeholders’
needs based on the extent of the impacts of the organisation’s operations
on any stakeholder’s life (Deegan 2014a).
In accordance with the definition of stakeholder, stakeholders are
identified as shareholders, employees, customers, suppliers, lenders, and
society (Freeman et al. 2010). Using this approach, Clarkson (1995)
specifically classifies stakeholders into two: primary and secondary
stakeholders (cited in Deegan 2014b, p. 374).
According to Clarkson (1995), primary stakeholders are the
groups without whose continuing participation the corporation cannot
survive as going concern. These groups have direct interest in an
organisation as they are directly benefited from or affected by the
organisation’s activities. Therefore, the organisation must primarily
consider these groups because there is highly interdependence between
the two parties. Primary stakeholders are typically included of employees,
customers, suppliers, and public stakeholder group such as the
governments and communities, regulators, and business partners
(McManus & Webley 2013).
On the other hand, secondary stakeholders are the groups who are
not engaged in day-to-day activity of the organisation but can influence or
affect, or are influenced or affected by the organisation’s activities. These
groups are deemed to be not essential for the organisation’s survival, yet
they can cause a significant damage to the organisation, thus inducing
firms to respond to their requests (Eesley & Lenox 2006). Secondary
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stakeholder are comprised of the media and special interest groups
(Clarkson 1995).
Additionally, Lépineux (2005) suggests that civil society, in the
level of nationwide, should be as well included in the stakeholder list and
be on top of the list. He argues that civil society is a fundamental
stakeholder, albeit the argument that its concerns or demands are of a
more general nature. Moreover, Jacobs (1997) proposes the environment
as stakeholder. In the level of business, he argues that it is reasonably
logical to treat the environment as stakeholder because the environment
– including the future generations – is affected by the organisation’s
decision, and therefore its protection should become a responsibility of
the organisation. The interest of environment and future generations
could be represented by specific individuals or groups within the present
generation such as ENGOs.
2.1.2.2. WML’s Stakeholder List
Based on the aforementioned discussion of stakeholder
identification, WML’s stakeholders are identified as follow:
These stakeholders are identified based on WML’s current
business activities. In align with the ethical reasoning these stakeholders
have equal rights for the information.
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2.1.3. The What Stage
2.1.3.1. Stakeholder Engagement
Stakeholder engagement can be fulfilled through dialogue between
the company and the stakeholders. The dialogue itself must be a two-way,
consciousness-raising process of mutual disclosure between the two
parties (Edgley, Jones & Solomon 2010). Additionally, the dialogue must
translate into a change of corporate behaviour (Thomson & Bebbington
2005). Stakeholder engagement enables the organisation to figure out the
reasonable expectations of its stakeholders. However, in order to be able
to engage, the stakeholders will need information about the effects the
organisation’s activities have, or are likely to have, on them. Hence, WML
must firstly provide the information of its current operations in order to
engage with its stakeholders.
2.1.3.2. Identification of the Information
Again, in line with the ethical reasoning and accountability, the
information provided should regard the account of positive and/or
negative impacts the organisation has on its stakeholders. The
implications of WML’s current business activities are discussed as follow.
First, the major business activity of WML is surfboards
manufacturing. The sustainability issue in this activity relies on the
process of the construction. A construction of general surfboard
contributes to releasing greenhouse-gas, which weakens the ozone
layer, releasing fibreglass dust that cause fatal respiratory illness to
the workers, and the use of resin causes drowsiness, liver damage
and dizziness (Power 2010).
Second, WML currently outsources wetsuits from a supplier in
Bangladesh who employs mostly women. The garment industry is
primarily the largest contributor in Bangladesh’s economic,
resulted in decreasing poverty from 80% to less than 30% in 2013
(Bain & Avins 2015). However, this industry has a long history of
health and safety tragedies for the workers, resulted in the
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Tazreen Fashions fire in 2012 and the collapse of the Rana Plaza
factory in 2013 (ACCORD 2015). The woman workers dominate
the industry, which contribute $24 billion a year to the industry,
yet are still viewed as cheap labour and receive the lowest
minimum wage in the world (Connell 2015). These workers work
under informal job contract due to the lack of education and are
easily getting laid off without any compensation (Absar 2002). On
top of it, the long hours working under improper condition of
workplace affects the health of the women workers. There are also
threats of sexual harassment at workplace (Begum et al. 2010).
Additionally, the wetsuits produced are not eco-friendly made and
the ways of creating neoprene are major contributor to
environment pollution as it uses extreme heating of chemical
substances and mining limestone from mountains (Power 2010).
Third, the issue of transportation fleet. According to the Climate
Change Authority of Australian Government, 16% of Australia’s
greenhouse-gas emission is contributed by the domestic transport
sector (CCA Undated). As WML currently uses domestic and
international transport fleet in shipping and distribution, this
directly implicates the environmental issues.
In essence, these are the social and environmental implications on
WML’s stakeholders that must be taken into account on what to report.
2.1.4. The How Stage
After identifying the implications, it is now possible to determine how to report
the implications in a sustainability reporting. There are two ways of sustainability
reporting, which is <IR> and GRI. This report, however, recommends GRI as the
guideline for WML in building sustainability report. The reason being is, GRI
enables organisations to consider their positive and/or negative impacts of
sustainability issues in wider range (GRI Undated). Therefore, aligned with the
ethical reasoning, GRI enables WML to measure its performance in social and
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environmental issues. This would then lead WML to decision making regarding
increasing its positive impact and reducing its negative impact on its stakeholders.
2.1.4.1. About GRI
GRI is an international independent organisation that pioneered GRI
Sustainability Reporting Guidelines, which is purposed to offer Reporting
Principles, Standard Disclosures and Implementation Guide in SR (GRI 2013). In
2013, GRI developed G4 as the latest guidelines. G4 is designed to be applicable
to all organisations universally from any sector and is easier to use. Therefore, it
enables WML to follow the guidelines.
2.1.4.2. ‘In accordance’ Option
G4 offers Core and Comprehensive option for organisations to determine
their ‘in accordance’ with the Guidelines (GRI 2013). As WML is considered new
to sustainability reporting, the Core comprehensive is seemingly sufficient to
guide WML in building its SR. Moreover, the standard disclosures based on this
option could provide sufficient information for WML’s stakeholder, which can
lead to meeting the stakeholders’ expectation.
2.1.4.3. General Standard Disclosures
In accordance with the Core option, the General Standard Disclosures1
requires WML to report the materiality of aspects that covers its significant
impact on economic, environmental and social to its (GRI 2013). This includes
reporting how WML respond to its stakeholders’ reasonable expectations and
interests. In relation to ethics and integrity, WML must present its values,
principles, standards and norms in terms of business sustainability.
2.1.4.4. Specific Standard Disclosures
The Specific Standard Disclosures2 is divided into three categories, which
are Economic, Environment and Social. The guidelines provide specific
1 See APPENDIX 1.
2 See APPENDIX 2.
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indicators3 for each category that enables WML to measure its performance in
sustainability based on its current operations.
2.1.4.4.1. Economic
The economic category emphasises the sustainability concerns of
WML’s impacts on the economic conditions of its stakeholders and on
economic system at local, national, and global levels (GRI 2013).
Reporting based on this category includes WML’s current operation in
manufacturing surfboards locally. It clearly contributes to the economic
benefit to its local employees, and the community in large as it provides
jobs.
Facing a heighten competition from imported goods in surf
industry, WML brings a positive impact, in relation to procurement
practices, on the local businesses as it has the raw materials for surfboard
supplied from local suppliers in Australia. Relating to WML’s activity in
outsourcing wetsuits from Bangladesh, the significant indirect impact of
this operation is that it provides jobs for the workers and increases the
country’s economic development.
2.1.4.4.2. Environmental
The environmental category concerns the impact on living and
non-living natural systems, including land, water, air, and ecosystem of
the organisations’ operations. This includes the reporting on the inputs
and outputs, as well as biodiversity, transport, environmental compliance
expenditures (GRI 2013).
In general, the surf industry contributes to numerous
environmental issues. This industry leaves pollution footprints with each
step of manufacturing process, the distribution, to the usage of the
products by the end users. Therefore, reporting on the environmental
performance for organisations that operate in this industry is quite
3 Detailed discussion of the indicators is provided in APPENDIX 3-8.
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relevant. For WML, this reporting could lead to meeting the information
needs of the stakeholders, specifically for the ENGOs.
WML currently manufactures two types of surfboard; bamboo-
made and recycled water bottles. Therefore, in relation to material usage,
WML can measure the percentage of recycled input materials used in
comparison to the bamboo usage. The extent impact on biodiversity
based on the materials usage, specifically bamboo material, must also be
reported. WML is also required to report on the energy consumption of its
operations.
Moreover, as process of producing and distributing surfboards,
and importing the wetsuits from Bangladesh contribute to greenhouse-
gases and landfills, WML is required to report its emissions of ozone-
depleting substances. Lastly, WML’s supply chain includes suppliers of
surfboards materials, who contribute to positive and negative
environmental impacts. Therefore, these suppliers are subject to be listed
on the report.
2.1.4.4.3. Social
This category is concerned about the impacts on the social systems
within the organisation’s operations, which including Labour Practices
and Decent Work, Human Rights, Society, and Product Responsibility
aspects (GRI 2013). In general, the surf industry contributes to several
social issues. For example, the production of surfboards impacts the
health and safety of the workers. Thus, WML must provide the
information regarding the OHS for its employees, including reporting that
there are 200 employees working in the surfboard factory who have high
risk of specific disease.
The information should also include listing the suppliers subject to
labour assessment. It being, the wetsuit supply company in Bangladesh
who employs 95% woman worker out of the total number of employees
as well as the OHS of these workers as discussed in the previous stage.
Reporting this information would enable WML to consider what the
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stakeholders’ expectations of WML regarding this labour practice issue in
supply chain. Thus, actions are keen to be taken in order to be
accountable of its operations.
2.2. Future Implications
WML is currently considering moving the surfboard manufacture to China and
using moso bamboo material from local supplier in China. Clearly, moving the
production to China will reduce the cost of production as labour and material costs
are lower. It could bring competitive advantage to WML in terms of product pricing,
as the industry that WML operates in, Toy and Sporting Good Manufacturing in
Australia, is facing a heighten competition from imported goods that are cheaper
(IBISWorld 2015).
However, this decision has social and environmental implications. Moving the
production overseas will cost the 200 local workers in the surfboard factory their
job therefore social factors must be taken into account. Further social implication is
the safety of the customers. Producing surfboards required high skilled workers.
Therefore, despite the lower labour cost, the Chinese workers may not have the skill
to produce safe and good quality surfboards.
Moreover, the use of plantation in Wuyi Mountain has severe environmental
implications such as large-scale forest conversion, loss of critical and endangered
habitat, soil erosion, soil and water pollution, and climate change (WWF Undated).
The shipping would also increase WML’s carbon footprint. Consequently, should
WML decided to move the surfboard manufacture to China, there has to be
adjustment on its SR accordingly to this activity.
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3. Conclusion
As a business organisation, WML is responsible for the accountability of its actions.
Therefore, WML’s voluntary practice such as sustainability reporting is aligned with the
ethical reasoning and accountability. That is, to minimise the negative impact and
maximise the positive impact of its operation on its stakeholders; primary and
secondary. The voluntary disclosure will enable WML to address its economic,
environmental and social impacts and then report it. GRI, as one of the reporting tools,
provides guidelines in sustainability reporting. The indicators applied will enable WML
to measure its performance in sustainability. Most importantly, it enables WML to make
decision that best served its stakeholders’ expectations.
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Reference
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APPENDICES
APPENDIX 1: General Standard Disclosures
APPENDIX 2: Specific Standard Disclosures
APPENDIX 3: Economic Dimension
Indicator Discussion
Economic Performance
G4-EC1 This indicator includes reporting the direct economic value
generated from WML’s revenues, which are distributed into
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operating cost, employee wages and benefits, payments to
providers of capital and government, and community
investment. WML’s surfboards manufacture contributes to
the economic condition as it provides jobs for local workers.
Market Presence
G4-EC5 This indicator allows WML to report on the proportion of the
employees are compensated based on minimum wage rules,
both at entry level and by gender. Reporting based on this
indicator, WML is also required to report about its wetsuits
outsourcing activity from Bangladesh, which includes women
workers and its minimum wage issue.
Indirect Economic Impacts
G4-EC8 WML’s wetsuits outsourcing activity delivers significant
positive indirect impact as it provide jobs for the workers in
Bangladesh. They, too, are considered as WML’s stakeholder
according to the ethical branch, although they may be
indirectly impacted by WML’s operation.
Procurement Practices
G4-EC9 This indicator will allow WML to measure the percentage of
the procurement budget spent on local suppliers. It must also
define its geographical definition of ‘local’ and its definition
used for ‘significant local of operation’.
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APPENDIX 4: Environment Dimension
Indicator Discussion
Materials
G4-EN2 This indicator requires WML to report on the percentage of
recycled input materials that are used to manufacture the
surfboards.
Energy
G4-EN3 The reporting includes total energy consumption in joules or
multiples in the surfboard factory and the office.
Water
G4-EN8 WML must report on the total volume of water withdrawn
from surface/ground water and the use of recycled water.
Biodiversity
G4-EN12 The reporting includes the significant direct and indirect
impacts of WML’s activities on biodiversity from the use of
manufacturing plants and the products.
Emissions
G4-EN15 According to this indicator, WML is required to calculate its
direct emission and report it in metric tons. By reporting its
direct emission, WML would be able to consider its indirect
emission, as well as making a decision that can reduce its
emissions.
Effluent and Waste
G4-EN23 Reporting on its total waste would enable WML to generate a
waste management plan, which would lead to reducing the
number and volume of its waste.
Products and Services
G4-EN27 This indicator will allow WML to consider the impacts of its
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products on environment and whether the impacts have
been mitigated. Thus, it will create an opportunity for WML
to do research in environmental-friendly products,
specifically for wetsuit.
Compliance
G4-EN29 This indicator requires WML to report any significant fines
and sanctions for non-compliance with environmental
regulations.
Transport
G4-EN30 This indicator will allow WML to consider its significant
impact of transporting its products. For example, the impact
of transporting wetsuits from Bangladesh.
Overall
G4-EN31 WML is required to report the total number of environment
protection expenditures and investment, if any. This would
enable WML to eventually consider about environment
protection from the impacts caused by it operations as well
as the surf industry activity in general.
Supplier Environmental Assessment
G4-EN33 Assessing this report, WML must report the list of its
suppliers subject to environmental assessment. Therefore, it
will enable WML to generate sustainable supply chain.
APPENDIX 5: Social Dimension – Labour Practice and Decent Work
Indicator Discussion
Employment
G4-LA2 This indicator require WML to report on the benefits its
employees receive, such as life insurance, health care,
disability and invalidity coverage, parental leave, retirement
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provision, stock ownership, and any other employment
benefit.
Labour/Management Relations
G4-LA7 Reporting this indicator will enable WML to list the workers
involved in occupational activities, who have high risk of
specific disease. This includes reporting on the factory
workers that are prone to fatal disease.
Training and Education
G4-LA10 This indicator will able to provide the information regarding
employment training program. This will help WML to
generate training program for its employees.
Diversity and Equal Opportunity
G4-LA12 The reporting includes reporting the percentage of
employees by gender, age categories, minority groups and
other indicators of diversity.
Equal Remuneration for Women and Men
G4-LA13 WML must report the ratio of the basic salary and
remuneration based on gender.
Supplier Assessment for Labour Practice
G4-LA15 This indicator enables WML to list all its suppliers subject to
labour practice. Specifically, it will enable WML to assess its
wetsuit supplier in Bangladesh for labour practice in
employing women.
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APPENDIX 6: Social Dimension – Human Rights
Indicator Discussion
Non-discrimination
G4-HR1 This indicator requires WML to report the total number
discrimination incidents during the reporting period. This
will enable WML to take action to prevent discrimination
within the organisation.
Child Labour
G4-HR5 The reporting enables WML to assess its operations,
including suppliers that have high risk of child labour
incident and what action needs to be taken in order to
prevent the incident.
Indigeneous Rights
G4-HR8 This indicator measures WML total number of incidents of
violations in human rights regarding indigeneous people and
what actions should be taken.
APPENDIX 7: Social Dimension – Society
Indicator Discussion
Local Communities
G4-SO2 This indicator enables to report the actual and potential
negative impacts of its operation on the local communities.
For example, the actual and negative impacts of it factory
location.
Compliance
G4-SO8 WML must report the total monetary value of significant
fines as a result of non-compliance with laws and regulations,
if any.
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Suppliers Assessment for Impacts on Society
G4-SO9 This indicator will enable WML to generate a screening on its
suppliers using criteria for impacts on society, which will also
enable WML to generate a sustainable supply chain.
APPENDIX 8: Social Dimension – Product Responsibility
Indicator Discussion
Customer Health and Safety
G4-PR1 In surf industry, the health and safety of the surfers are prone
to be high risk. Therefore, it is significant for the
organisations to assess the improvement of their products
regarding health and safety of the surfers as customer. Hence,
WML must provide the information regarding its intention to
improve its products using this indicator. Moreover, this
indicator will enable bring an opportunity for WML to
generate research and produce surfboards and wetsuits that
are safe for the customers.
Compliance
G4-PR9 WML must report the total monetary value of significant
fines as a result of non-compliance concerning the provision
and use of products and services, if any.