MARKING GUIDE

Unit No: FNSINC401A

Apply Principles of Professional Practice to Work in the Financial Services Industry

ASSESSMENT EVENT/S

Event 3 of 4 (20% of total assessment mark)

ASSESSMENT CONDITIONS/ INSTRUCTIONS TO STUDENTS

·  See attached

Due Date:

PERFORMANCE MEASUREMENT

Results will be reported as:-

Competent or Not Yet Competent (Grade Code 42)

Question Number / Marks Allocated / Marks Achieved
1 / 4
2 / 4
3 / 4
4 / 4
5 / 4
20

Plagiarism Declaration

I have read the Student Service Guide under Student Responsibilities to “… not engage in plagiarism, collusion or cheating in any assessment event or examination”.

Student Signature…………………………………………


Instructions:

·  5 questions must be completed

·  Answers to be approx a half A4 page in length

·  Submit your completed task online via the Sakai website

·  Students must be deemed competent in all elements of this task and any other task that pertains to this unit to be deemed competent in this unit.

Question 1 4 marks

In your own words describe sustainability.

Answer:

Meeting the needs of present generation without compromising ability of future generations to meet their own needs.

Question 2 4 marks

What are the three pillars of sustainability? Explain each of these pillars in relation to the business environment.

Answer:

The 3 pillars of sustainability can be seen as the 3 P’s. These are economic (profit), social (people) and environmental (planet). They overlap in many of the areas and are often shown in a 3 circle format.
Environmental (Planet)
For a business to survive and grow, they need to reduce their water and energy use or find alternative sources for them (solar, stormwater or rainwater harvesting). They need to reduce and recycle waste, contribute to a cleaner air, manage land use and protect habitats, think about the transport of raw materials and in effect reduce their ecological footprint.
Economic (Profit)
The bottom line of running a business is always about profit. However apart from the standard financial reports, the 3 economic pillars can also be about the people who are employed in the organisation. How well they are paid or not paid. The value of the raw materials in production, where they are sourced etc.
Social (people)
This is where a business sits within its community, how is it viewed, is it seen as a good corporate citizen? Does it protect the health and safety of those living around it and the people working for it. This also overlaps the economic and environment areas of paying people a fair days pay for a fair days work.
The best example of a company that I have come across that has encompassed these 3 pillars is Interface which was founded by Ray Anderson. In 1994 he took his profitable carpet tile company and completely turned it around empowering his staff to not only be number 1 in carpet tile manufacture, but to reduce the environmental footprint to “mission zero footprint”. As the website says their vision is to “Be the first company that, by its deeds, shows the entire world what sustainability is in all its dimensions: people, process, product, place and profits - and in doing so, become restorative through the power of influence"
and that by 2020 to “eliminate any negative impact”.
http://www.interfaceglobal.com/Company.aspx

Question 3 4 marks

List and explain the three key factors noted (in the text) that motivate businesses to implement sustainability policies.

Answer:

Three key factors that motivate businesses to implement sustainability policies are;
1. Reputational Risk: Businesses do not want to damage their brand as being environmentally irresponsible.
2. Legislation and liability: Increased number of cases where businesses are held liable for damage to the environment.
3. Operational Costs: monetary benfits for a busienss to implement energy efficient practices.
In the text, the BP Oil spill in the Gulf of Mexico is a great example of a company who's being held liable for damages to marine life, fishing industries and had extensive costs for lawsuits and cleanup and payouts because of the oil spill. This made international news and as damaged the company's reputation.

Question 4 4 marks

The financial services industry looks at Triple Bottom Line (TBL) accounting. In your own words, explain what this means.

Answer:

Triple Bottom Line accounting means expanding the traditional form of financial reporting for an organisation to incorporate the interests of "people" - meaning employees, customers and the community; and the "planet" - to include such things as waste disposal, recycling, and minimising the energy used. This broader view showcases how the business contributes to the greater economic environment without sacrificing the bottom line profit.

Question 5 4 marks

The Teachers Credit Union (TCU) employs Triple Bottom Line principles. What is their approach to sustainability? How does their financial reports reflect the principles of TBL reporting?

Answer:

Triple Bottom Line Accounting is an expanded method of measuring a business's success. Instead of just reporting on the profitability and financial operations of a business and its dollar contribution to the economy (P=Profit) it provides the results of its social (P=People) and environmental performance (P=Planet) for the period as well.
By employing TBL the TCU demonstrates that they approach sustainability in their business seriously and want to be seen to be considering their operation not just in monetary terms. They consider their impact on society and the environment as equally important which is reflected in their financial reports. Their website refers to their corporate responsibility towards the 4 areas of Members, Community, Employees and Environment and their annual reports display numerous reports featuring prominently the measured outcomes/achievements and results in these areas, together with information regarding profit/financial performance. There is also a section on Corporate responsibility where Key Performance indicators and Targets are listed.


Question 6 4 marks

The government is working towards a sustainable environoment and have created / approved environmental and legislative guidelines to help businesses. What is the government department that assists business in NSW?

Answer:

In NSW this is now under the Office of Environment and Heritage (OEH) Previously called the Department of Environment, Climate Change and Water (DECCW). Part of the water portfolio has been transferred to the Department of Primary Industries (water extraction, water licencing and allocation under the Water Management Act 2000). However water quality, stormwater, pollution and treatment, wetlands still come under OEH. Heritage has now been incorporated into this new department which includes old buildings and aboriginal sites.

Question 7 4 marks

What is the aim of the Protection of the Environment Operations Act 1997 (POEO Act)?

Answer:

The POEO Act is the primary piece of environmental law in NSW. It's purpose is to protect the environment and public health from potential harm. It is administered by the Office of Environment and Heritage and it sets out explicit policies (called PEP's - Protection of the Environment Policies) that set environmental standards, goals and guidelines regarding water, land, air pollution, noise pollution, and waste management and also covers licencing and approval arrangements. There are substantial penalties that can be imposed for breaching the Act, up to $5million for a company, or $1million for an individual and/or 7 years prison. It also provides the framework for government decisions regarding the environment and puts into effect the the measures set by the National Environment Protection Council.

Question 8 4 marks

What does the term 'Greenwashing' mean?

Answer:

Greenwashing
This term is used to describe businesses which advertise themselves as being green or environmentally friendly but in actual fact are not. Australian Government organisations are required to include information about their sustainability in their annual reports as per Section 516A of the Environment Protection and Biodiversity Conservation Act 1999. Businesses are restricted under Section 18 of the Australian Consumer Law Act 2010 in making misleading or deceptive claims and if they fail to do so could face up to $1.1 million in fines.
The company TerraChoice, a division of United Laboratories, came out with the 7 Sins of Greenwashing Report in 2007. These are:
Sin of the Hidden Trade-off: Not taking all the issues into account e.g. paper from sustainable forests but not including the transportation over long distances.
• Sin of No Proof: Claims that can’t be substantiated by a recognised sustainability organisations e.g. Australian label ‘Smart Approved Water Mark’.
• Sin of Vagueness: claims like “all natural” what does that really mean – mercury occurs naturally.
• Sin of Irrelevance: The claim might be truthful but is it relevant – e.g. CFC’s free in the aerosol when there are no CFC’s used today.
• Sin of Lesser of Two Evils: Energy-efficient Hummer motor vehicle?
• Sin of Fibbing: Telling an outright lie.
• Sin of Worshipping False Labels: giving the impression it is endorsed by a environmentally friendly organisation but the claims are fake.
Since they started their report in 2007, things have improved slightly as their 2010 report states 4.5% of products were found to be sin free whereas in 2009 only 2% were. There is still a long way to go.
Source: http://sinsofgreenwashing.org/findings/the-seven-sins/

Question 9 4 marks

There are many strategies for incorporating sustainability into a business. Some strategies include:
Carbon Trading
Ecological Footprinting
Lifecycle Analysis
Product Stewardship
Supply Chain Management
Sustainability Covenants and Compact
Green Office Programs
Triple Bottom Line Reporting
What is Ecological Footprinting and Product Stewardship? Explain your understanding of each of these strategies.

Answer:

"Ecological Footprinting" is the measure of human demand on the Earth's ecosystems.
It represents the amount of biologically productive land and sea area necessary to supply the resources a human population consumes, and to deal with the associated waste. Using this assessment, it is possible to estimate how much of the Earth (or how many planet Earths) it would take to support humanity if everybody followed the current lifestyle.
"Product Stewardship" is a concept whereby environmental protection is centred around the product itself, and everyone involved in the lifespan of the product is called upon to take up responsibility to reduce it's environmental impact.
By this, I understand it to mean that manufacturers plan for, and if necessary, pay for the recycling or disposal of the product at the end of its useful life. This may be achieved by:
Redesigning products to:
a)use fewer harmful substances,
b)be more durable, reuseable and recyclable,
c)make products from recycled materials.
For retailers and consumers, this means taking an active role in ensuring the proper disposal or recycling of an end-of-life product.

Question 10 4 marks

There are many strategies for incorporating sustainability into a business. Some strategies include:
Carbon Trading
Ecological Footprinting
Lifecycle Analysis
Product Stewardship
Supply Chain Management
Sustainability Covenants and Compact
Green Office Programs
Triple Bottom Line Reporting
What is Carbon Trading and Supply Chain Management? Explain your understanding of each of these strategies.

Answer:

Carbon Trading is a strategy where businesses control their carbon outputs/pollution. This may be done in several ways including:
Carbon offsetting - businesses offset carbon emitting activities against carbon conserving activities,
Carbon Credit - selling carbon excess offsets to other businesses who require them to meet the required level
Application of proceeds of Carbon Credit - making use of funds generated in projects that reduce carbon emissions.
Supply Chain Management involves a business considering not just their own activities effects on the environment, but those of its suppliers and inputs. When purchasing and establishing relationships with suppliers the business requires that its suppliers are meeting specified standards regarding their environmental, ethical and social impacts.For example "Are the suppliers complying with international and local regulations and standards?" "are there policies and procedures in place to ensure sustainable practices are adhered to?" They may require reports, documentary evidence or inspections to answer these types of questions. The strategy will involve selecting suppliers and products that only meet their standards.

Question 11 4 marks

There are many strategies for incorporating sustainability into a business. Some strategies include:
Carbon Trading
Ecological Footprinting
Lifecycle Analysis
Product Stewardship
Supply Chain Management
Sustainability Covenants and Compact
Green Office Programs
Triple Bottom Line Reporting
What is Green Office Programs and Lifecycle Analysis? Explain your understanding of each of these strategies.

Answer:

Green office programs are to promote cultural change and encourage staff to be part of environmental sustainability and attempt to make their workplace more environmentally friendly. There are some actions to make the workplace more environmentally friendly as follow:
- Purchase recycled paper,
- Purchase organic products,
- Reduce paper usage,
- Reduce energy usage,
- Avoid unnecessary waste from non-biodegradable disposals,
- Recycle
- Promote environmental resposibility
- Promote sustainable transpost such as walk, cycle, etc.
Lifecycle analysis is a method to assess environmental impacts associated with product's life from raw material processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling. The aim is to improve processes of product sustainability and reduce pollution products.

Question 12 4 marks

What is the Australian Government's role in education for sustainability?

Answer:

2009 The Australian Government National Action Plan for Education for Sustainability has identified the Australian Government’s role in education for sustainability is to: 1. provide national leadership and coordination 2. promote good practice and nationally consistent approaches 3. encourage community engagement on a national level 4. represent Australia’s interests internationally The Australian Government pursues this role through national structures, partnerships, funding and research. Internationally, the government represents Australia’s interests by participating with other national governments in international forums and initiatives.
Source: http://www.environment.gov.au/education/publications/pubs/national-action-plan.pdf

Question 13 4 marks

When discussing natural resources, the term renewable and non renewable resources are used. You are required to research these terms and provide two (2) examples of each and explain why they are renewable or non renewable.