MBA402 Risk And Sustainability Report Assignment Sample

Introduction: MBA402 Risk And Sustainability Report

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Engineering graduate Joshua Milton and his brother, soil scientist Keith Milton, established JKM in 1990. Projects in the mining industry don't last forever. The site of a defunct mine must be made safe for future use and then redeveloped. The long-term plan involves restoring the land rather than extracting resources from it through mining. Through their mining industry connections, Joshua and Keith were able to start a small firm in Western Australia (environment.vic.gov.au, 2023). JKM grew so successful that it began restoring commercial and industrial properties as well. The New South Wales office of JKM has plans to increase the number of water reclamation projects it does. Growing the company and investing heavily would be required. An in-depth study of JKM Renew Pty Ltd (JKM), a prominent land/water remediation organization's corporate governance frameworks and sustainability practices is provided in this research. The purpose of the report is to evaluate the company's compliance with the principles of corporate governance and to pinpoint areas that could be improved. It also looks at the essential components that will be covered in JKM's report on sustainability while taking into account the opportunities and difficulties unique to the industry (Crowther and Seifi, 2020). This research analyses JKM's management and sustainability practices and provides insightful analysis and suggestions to improve the company's openness, risk management, engagement with stakeholders, and overall ecological performance.

The three appropriate ASX corporate governance principles that you consider most relevant to this company.

Three ASX company governance standards are particularly pertinent to the operations of JKM Renew Pty Ltd (JKM) when providing advice on its corporate governance frameworks:

Design a board to add value

This idea emphasizes how crucial it is to have a board that is efficient, responsible, and able to enhance the firm. The board of directors for JKM is made up of Keith Milton, the CEO and co-founder, Joshua Milton, a board member and co-founder, Alana Milton-Jones, the CFO and acting board chair, Myra Peterson, the head of human resources and company secretary, and Edward Peterson, the COO (Eberhardt, 2022). Although it is typical for close relatives to have top positions in businesses, it is vital to make sure that a board of directors is diversified and has a director with independence who can offer unbiased opinions and dispute management choices. JKM may gain from varied viewpoints and enhanced decision-making by designing the board to contain independent directors that pertinent experience in land cleanup, finance, and governance.

Encourage moral and responsible judgment

This principle emphasizes the necessity of having a strong ethical foundation and a decision-making environment within organizations. JKM must place a high priority on moral behavior and ecological responsibility given that business engages in land remediation. To ensure adherence to pertinent laws and regulations, JKM should adopt precise procedures and guidelines for evaluating and minimizing the environmental effects of their operations (Valentine, 2019). Additionally, they ought to encourage accountability and openness when they update stakeholders on their impact on the environment. JKM may improve its reputation, forge stronger links with its customers and the communities they serve, and draw in ethical and socially conscious investors by conducting business responsibly and ethically.

Protect the credibility of corporate reports

This principle highlights the significance of transparent and accurate reporting to stakeholders. With roughly AUD$60 million in yearly revenue, JKM should make certain that its financial records and additional corporate reports are created in compliance with the rules of accounting and give an accurate and fair representation of its financial status (Wang, 2020). Protecting assets, stopping fraud, and assure compliance with applicable laws and regulations, involves sustaining strong internal controls. To increase the credibility and dependability of its financial reporting, JKM must have an independent review of its accounting records performed by respected auditing companies. JKM can gain the trust of stakeholders such as creditors and investors by maintaining the reliability of its company reports.

How these would be beneficial for JKM, regardless of whether the company transitions into an ASX-listed entity?

Even if JKM Renew Pty Ltd (JKM) does not become an ASX-listed company, the company would benefit from putting the three ASX principles of corporate governance into practice. These guidelines support sustainable growth, boost trust among stakeholders, and strengthen the business's entire governance framework. This is how:

Build the board in a way that adds value:

JKM may gain from a variety of viewpoints, specialized knowledge, and unbiased decision-making by organizing the board by including independent directors having the necessary experience. Independent directors contribute new perspectives, question management's presumptions, and make certain that the business's strategies adhere to industry norms and best practices. Their participation on the board may improve JKM's reputation, especially when dealing with customers, the community, and governing bodies. A productive and inclusive board helps develop sound governance procedures and improves the business's overall image, even if it has no listing on the ASX.

Encourage moral and responsible judgments:

Any firm, whichever it is listing status, must operate morally and responsibly. Prioritizing ethical behavior will help JKM improve its brand, draw in customers and shareholders that value social responsibility, and forge lasting bonds with stakeholders (Malle, 2021). The requirements of authorities, communities, and customers in the land restoration sector are aligned with showing a dedication to environmental stewardship. In addition to assisting in environmental protection, executing clear rules and processes for monitoring and reducing environmental effects additionally, assists the organization reduce potential regulatory and reputational problems.

Protect the credibility of business reports:

Despite whether a firm gets listed within the ASX, accurate and open reporting is crucial for preserving stakeholder trust. JKM's dedication to openness and accountability is demonstrated through the implementation of strong internal controls, guaranteeing conformity with accounting guidelines, and carrying out external audits of financial statements (Schultz, 2020). Accurate financial reporting improves the company's financial standing and credibility, enabling stakeholder decision-making procedures and luring new lenders and shareholders. Additionally, strict control procedures aid in identifying and reducing financial risks, assuring the business's financial viability over the period.

The benefits and challenges of producing a sustainability report for JKM.

For JKM Renew Pty Ltd (JKM), a company involved in the land/water remediation sector, creating a sustainability report can have several advantages but also present some unique problems. The advantages and difficulties of writing an environmental report for JKM are outlined as follows:

Benefits:

1. Improved Reputation- The report on sustainability highlights JKM's dedication to social impact and environmental responsibility, boosting its standing as a sustainable and ethical business (Brogan, 2020). This may draw consumers, financiers, and stakeholders who care about the environment.
2. Stakeholder Participation- The sustainability analysis offers a forum for interaction with stakeholders, such as customers, neighborhood communities, government officials, and staff members. It promotes transparency and confidence by disclosing JKM's sustainability results, initiatives, and long-term objectives.
3. 3. Risk Prevention- The study enables JKM to pinpoint and manage possible ecological or social hazards connected to its business operations. JKM can show its dedication to sustainable practices and adherence to laws by demonstrating the steps taken to reduce these risks.

Challenges:

1. Collecting data and reporting- It can be difficult to compile accurate and thorough data on ecological impact, resource usage, and social outcomes. JKM will need to set up monitoring methods and install reliable data collection systems.
2. Impact Assessment Complexity- Analyzing the environmental effects of projects to remediate contaminated land or water can be challenging. To accurately determine and record their environmental impact, JKM may need to work with specialists and establish techniques.
3. Stakeholder Assumptions- Stakeholders might have different expectations for the overall sustainability report's substance and level of depth. JKM will have to carefully take into account the needs of the stakeholders and match reporting with appropriate reporting frameworks and industry best practices.
4. Allocation of Resources- It takes a lot of time, knowledge, and money to create a sustainability report (Guan, 2021). Resources must be set aside by JKM for data gathering, analysis, preparing reports, and third-party verification.

Some key elements that should be included in the sustainability report for this industry.

A thorough sustainability report for the land/water remediation sector should have important sections that deal with the sector's unique social and environmental implications (Wang, et.al, 2020). The following components are essential for JKM Renew Pty Ltd's (JKM) sustainability report taking into account the worries and viewpoints stated by the board of directors members of JKM:

Environmental Impact Inspection:

The sustainability report needs to include a thorough analysis of JKM's ecological impact, taking into account things like pollution of the soil and water, the use of chemicals, the production of waste, and emissions (Aragòn-Correa, 2020). It should describe the steps taken to reduce environmental impact, such as the implementation of waste management plans, sustainable remediation practices, and pollution prevention initiatives.

Occupational safety and wellness:

The sustainability report ought to tackle JKM's dedication to providing a healthy and secure workplace in light of the possible dangers connected with managing chemicals and conducting land remediation activities (Patel, et.al, 2022). It must contain information on the business's workplace safety and wellness guidelines, training plans, and procedures for risk evaluation, recognizing risks, and mitigation.

Engagement of Stakeholders:

The report ought to showcase JKM's initiatives to interact with stakeholders, such as regional communities, customers, staff members, and regulators. It must describe the techniques utilized to get feedback from stakeholders, respond to their issues, and include their opinions in the decision-making procedure. This feature illustrates JKM's dedication to open and inclusive procedures.

Regulation Compliance:

A sustainability statement must describe how JKM complies with all applicable environmental laws, rules, and licenses. It should include information about the business's compliance with industry norms, rules, and best practices, proving its dedication to ethical and lawful business practices.

Risk Administration:

JKM ought to outline its framework for managing risks in a section of the report. Both operational hazards related to land restoration programs and more general sustainability issues should be covered. The report should include recommendations for reducing social, governance, and ecological risks as well as an explanation of the procedures used to identify, evaluate, and manage risks.

Some key risks for a company such as JKM, and what benefits there would be in minimizing risk

There are some significant hazards for a business like JKM Renew Pty Ltd (JKM) working in the land/water remediation industry to take into account:

Environmental and Legal Risks:

JKM must comply with environmental laws and licenses, which entails risks. Non-compliance can result in fines from the law, harm to one's reputation, delays in projects, and client loss (Bommasani, et.al, 2021). Environmental hazards can also provide issues and possible risks for JKM, including unexpected levels of pollution or environmental repercussions.

Risks to Reputation:

JKM's reputation is essential for drawing customers and winning contracts. Any incidents or bad press involving environmental harm, failure to comply, or unethical behavior can have a seriously detrimental effect on their trustworthiness and reputation (Crépin, 2019). Threats to one's reputation can result in missed business opportunities, trouble hiring top people, and strained relationships with investors.

By reducing these dangers, JKM can get the following advantages:

Enhancement of Financial Performance- Risk mitigation helps safeguard JKM's liquidity. Operating smoothly and the maintenance of the organization's financial health are guaranteed by avoiding expensive legal fines, delays in projects, and damage to reputation (Cho, 2019). Higher revenue and long-term growth can result from successful risk management.

Competitive Advantage- JKM has an edge over its competitors in the business because of effective risk management. Customers are more inclined to select a business that exhibits effective risk mitigation procedures and a dedication to sustainability. By actively managing risks, JKM distinguishes itself from rivals as a trustworthy and reliable partner.

Conclusion and Recommendations

The report concludes that to reduce risks and make sure the company is successful and sustainable over the long run; JKM Renew Pty Ltd (JKM) must take proactive measures. JKM must give environmental laws, licenses, and safety requirements a top priority. This may be accomplished by routinely checking for compliance with the law, implementing training programs, and putting in place strong internal controls, which will help to reduce any potential financial, legal, and risk to reputation.

The report emphasized that JKM needs to set up a thorough framework for risk management that tackles both operational and environmental issues. This entails identifying, evaluating, and prioritizing risks as well as creating mitigation or eradication plans. JKM will be able to take control of any disruptions and safeguard the company's interests through ongoing risk evaluations and emergency plans. JKM needs to interact actively with all parties, including customers, staff members, government officials, and neighborhood groups. JKM may develop trust, cultivate positive relationships, and acquire insightful information to effectively manage risks by asking for their input, resolving concerns, and implementing feedback into decision-making procedures. JKM may successfully minimize risks, safeguard its reputation, increase trust among stakeholders, and establish itself as a pioneer in the land/water remediation sector by employing these proactive measures.

References

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• Crowther, D. and Seifi, S. eds., 2020. Governance and Sustainability: International Perspectives. Springer Nature.
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