The Development Impacts of Tourism Supply Chains: Increasing Impact on Poverty and Decreasing Our Ignorance - Responsible Tourism: Critical Issues for Conservation and Development - page 118

H/S Compliance

100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

0-5 6-10 11-20 21-50 51-100 101-1000 1000 &>

Figure 6.4 Health and safety compliance by size of company

While Spier has prioritized small businesses, the data showed that scores
increased (in some categories more than others) as the organization increased in
size. This is illustrated for health and safety in Figure 6.4. While this could stimu-
late a valid debate about Spier's preference to procure from small companies,
such scores reflect little about the amount remaining in, or leaking from, the local
economy and the poverty impact of the business, as discussed further below.
The figures show the degree of compliance with Health and Safety require-
ments (from 0 to 100 per cent) according to the size of company defined by the
number of employees (from 0 to 5, up to over 1000 employees).
Another priority for Spier was to shift procurement to as many local suppliers
as possible. The initial survey found that only 16 per cent of procurement spend
was on purchases from local suppliers, and the vast bulk (78 per cent) was spent
on regional suppliers. From a poverty and BEE perspective this needed to change
because 'regional' included many in the business centre of Cape Town, whereas
'local' (within 30km) included a number of poor settlements sprawling between
Cape Town and Stellenbosch. These are viewed as stakeholders of Spier, and are
where a number of Spier staff reside. The survey enabled management to set
objectives for localizing procurement and to evaluate performance for operational
staff, with marked results, discussed further below.
Another priority for Spier was to procure from black owned enterprises and
particularly local black businesses.The survey analysis revealed that Spier Leisure
had only 34 (12.8 per cent) 'black economically empowered' suppliers (meaning
more than a 25.1 per cent black shareholding) and of these, only 4 were local.This
prompted the establishment of an enterprise development programme to develop
new black local suppliers as outlined below, and an increase in the share of
procurement from both black and local suppliers, as outlined below.
The second use of the data was to indicate how suppliers were performing on
sustainable development indicators valued by Spier. Here again some misconcep-
tions were found.