Issue

Description

B.1.

The company actively supports initiatives for social and infrastructure community development including, among others, education, health, and sanitation.

Rationale

Linkages to the local community should exceed employment and economic growth through the development of the business.  Opportunities should be undertaken on a regular basis to provide resources, education, training, financial assistance, or in-kind support for initiatives in accordance with community priorities to improve the local livelihoods, thereby engendering community support for operations and creating a better customer experience. 

Key requirements

·       Support initiatives

·       Community development

Potential indicator

·       Percentage of annual gross income contributed to local* community for public benefit through commercial, in-kind, or pro bono engagement

·       Plan developed in collaboration with community (yes/no)

Type

·       Performance.  Quantitative

Data Sources

• Invoices of money paid to local community initiatives (or converted in-kind amounts)
• Gross turnover from financial records
• Independent valuation of infrastructure projects

Comments

Contributions do not include wages, salaries, or benefits paid to local employees.

Calculating the contribution to community development needs to be based on some factor that allows either in-kind donations to be converted to a cash value – or cash values to be converted to an in-kind measure.

*Local community is defined here as people and towns within 20 km, but particularly in remote areas, this may be much larger.  Local can be defined by individual operation, but should be documented and justified.  In the case of certified operations, any definitions applied by the certification programs should take precedence.

Issue

Description

B.2.

Local residents are employed, including in management positions. Training is offered as necessary.

Rationale

Local hiring and training is key to maximizing community economic benefit and fostering community involvement and integration with the business.  In addition, the tourism operation establishes a long-term stable labor relationship while enhancing the local authentic character of the tourism service and product.

Providing jobs at all levels of management ensures that the local population does not feel disenfranchised and can provide a sufficient dialogue between the Company’s ownership and the community. The company should support programs – internal or external – that will allow employees to develop beneficial skills for upward mobility. 

Key requirements

·       Employ local residents

·       Management opportunities

·       Training

Potential indicators

·       Percentage of local* employees on staff (management and non-management)

·       Percentage of payroll distributed to local* employees

·       Number of trainings received within/outside of operations per employee***

·       Number of internal promotions of local population

·       Retention rate of trained employees, part-time (seasonal) and full-time

·       Ratio of local year-round employees to local temporary employees

·       Training Scale (see A.3)

·       Amount of monetary investment in training and educational assistance as a percentage of payroll

Type

·       Performance.  Quantitative

Data Sources

• Business internal accounts
• Training materials and records

Comments

*Standard definition of local used here: owners, managers and staff with a primary residence within 20 km. See Glossary for further definition and comments on local communities in B.1.

** Part time staff should be expressed as a decimal of their average work hours as a standard 8 hour day.  For example, someone who typically works 2 hours a day would be 0.25.

*** Employees include full/part time, temporary and seasonal

To ensure economic benefits to the community are maximized, it is important to look at the number of local employees together with the payroll amounts in order to monitor if general pay scales are equitable for local staff and to demonstrate that not only lower paying jobs are going to local employees.

Issue

Description

B.3.

Local and fair-trade services and goods are purchased by the business, where available.

Rationale

Using goods and services produced locally or “fair-trade” have numerous social, economic and environmental benefits:

·       Support local businesses and provide jobs

·       Higher percentage of the price paid goes directly to provider of the goods and services which is then circulated several times in the community

·       Less distance for local goods and services,, so fewer greenhouse gases are burned in transporting it- reducing the ecological footprint. 

·       Fair trade goods and services ensure fair prices and wages are received by the producers

·       Enriches the visitors experience and 

·       Local goods and services can substantially lower costs with less middlemen and transportation costs

Key requirements

·       Local and fair trade purchases

Potential indicators

·       Percentage of purchases of services and goods from local* providers

·       Percentage of purchases that are fair trade purchases

·       Number of facilities built using local material

·       Purchasing policy gives priority to local and fair trade suppliers that meet quality and environmentally-friendly criteria (yes/no)

·       Checklist of available local, sustainable goods, services, and contract services

·       Percentage of available local, sustainable goods, services and contract services utilized

·       Percentage of local owned restaurants, services, and shops utilized on tours

Type

·       Performance.  Quantitative

Data Sources

·       Business invoice and account

·       Community business associations and chambers

Comments

Local providers should take into account distributors, wholesalers, and retailers, as well as producers.  See the comments on Criterion B.1 for further information and the glossary for the definition of “local”.

Wages, salaries, or benefits paid to local employees are not included.

In the case of certified operations, any definitions applied by the certification programs should take precedence.

Issue

Description

B.4.

The company offers the means for local small entrepreneurs to develop and sell sustainable products that are based on the area’s nature, history, and culture (including food and drink, crafts, performance arts, agricultural products, etc.).

Rationale

Programs that expose customers to the local culture and encourage the purchase of local crafts, goods and services help increase positive economic benefits to the community while engendering a sense of pride in cultural heritage.

Working with local small entrepreneurs can help diversify the product, thus increasing spending and length of stay.  This helps to diversify local economic activities to reduce dependency on tourism.  In some cases this can include designating a specific area for use by local entrepreneurs or promoting local cultural activities that are open to the public.

Key requirements

·       Opportunities for local small entrepreneurs

Potential indicators

·       Company provides access to enterprises, including handcrafts, food/beverage, cultural performances, or other goods and services, to sell directly to guests, where feasible (yes/no)

·       Promotion of local products in marketing activities and services (yes/no)

·       Number of local enterprises promoted

·       Number of local jobs created as a result of Company’s intervention

·       Number of new local enterprises incubated

Type

·       Process.  Qualitative

Data Sources

•  Marketing materials
• Interviews with local business chamber or associations

Comments

See the comments on Criterion B.1 for further information and the glossary for the definition of “local”.

Issue

Description

B.5.

A code of conduct for activities in indigenous and local communities has been developed, with the consent of and in collaboration with the community.

Rationale

Respecting and preserving the traditions and property of local populations is an important aspect in terms of today’s globalization. Codes of conduct for tourism activities which are developed in concert with local communities, respecting the principle of prior informed consent and the right of communities to say “no” to tourism activities is key to the long term viability and sustainability of the community and its environment. Tourism businesses should develop a plan to maintain regular and open communication with community officials to create a cooperative agreement that accounts for tourist interaction with the peoples and passage through the local communities.

Key requirements

·       Code of conduct

·       Developed with local community

Potential indicators

·     Appropriate Code of Behaviour is integrated into operations

Scale (for example):

·    1 = verbal intentions of management;

·    5 = presence of codes and educational material

·    10 = appropriate code documented and integrated into operations.  

      ·   Consultation and dialog with community and other stakeholders

Scale (adopted from Pretty, 1995).

·       No community or stakeholder dialog   

·       Community/stakeholders verbally informed of tourist operation code of behavior

·       Functional - Community/ stakeholders involved only when facilitates operation

·       Community/ stakeholders input actively sought and agreed upon code of behavior

Type

·       Process.  Qualitative

Data Sources

• Company policy documents, marketing, staff induction and training material, interpretive brochures
• Company policy and procedures for consulting and considering local interests
• Interviews with staff
• Exit surveys (ask guests if appropriate codes given)
• Community or stakeholder consultation records (minutes of meetings/ announcements/ etc)
• Minutes of periodic top-management reviews

Comments

The Convention on Biological Diversity and the Convention 169 of the International Labor Organization explicitly recognize the rights of indigenous peoples. Several international guidelines and many certification standards specify the topics that are to be covered in a Code and sometimes provide guidance on types of instructional material appropriate for the clients and staff of tourism businesses..

It is critical is to keep in mind that informing community/stakeholders and their right to participate in public consultations does not signify consent for tourism operations in a community, or the capacity and willingness to participate.  Operations must consider limitations based on gender, skills, or resources and develop appropriate measures to overcome obstacles. 

Evidence should demonstrate that dialogue and communication is a two-way process – and depending on the size of the enterprise, may involve formal public meetings, community consultative groups, or more informal dialog with community leaders (the type of consultation may very according to social/cultural structure of the region). 

This indicator may be used in conjunction with the Sustainability Policy document produced for the enterprise – as this is the public documentation of commitment to social and environmental performance.  Active encouragement of response and feedback on this document from any affected party is important, and records of consultation and communication should be kept.  

Issue

Description

B.6.

The company has implemented a policy against commercial exploitation, particularly of children and adolescents, including sexual exploitation.

Rationale

Children and adolescents, women and minorities are particularly vulnerable to abusive labor practices, including sexual exploitation. Weak law enforcement, corruption, the Internet, ease of travel, and poverty have created an underground industry which creates devastating immediate and long term community impacts in terms of disease, pregnancies, trauma, ostracism and even death.

Many codes and international initiatives within the tourism industry have sprung up in recent years as a result of this growing threat.  Businesses and the private sector play a key role in ensuring the protection of local populations at destination by not buying products produced with child labor; not allowing use of tourism premises for sexual exploitation of minors and denouncing these practices to local authorities. 

Key requirements

·       Policy implemented

Potential indicators

·       Scale (for example):

·       0 = No code of conduct exists

·       2 = Code of conduct included in written policy

·       4 = Code of conduct is displayed internally and externally

·       6 = Code is incorporated into training

·       8 = Training is regularly updated

·       10 = Awareness-raising campaigns exist among employees, customers and the community.

·       Number of incident reports from host destination authorities

Type

·       Process.  Qualitative

Data Sources

• Management policies
• Training documents
• Campaign materials
• Local authorities
• Interviews with community leaders

Comments

This is a Critical Criterion, and all businesses should comply.

Issue

Description

B.7.

The company is equitable in hiring women and local minorities, including in management positions, while restraining child labor.

Rationale

While major international labor conventions and norms address discrimination and child labor, women and local minorities often have unequal access to job opportunities, particularly in management, and child labor is still pervasive in many areas. 

Equality in hiring policies encourages an equitable distribution of wealth and closes income gaps along gender and ethnic lines. Adherence to international guidelines concerning the employment of children – ensures their education, enabling them to be future productive members of their community and enhances their quality of life.

Key requirements

·       Equitable hiring

·       No child labor

Potential indicators

·       Percentage of women and local minorities employees on staff is reflective of local demographics (both in management and non-management categories)

·       Employee turnover by gender and local staff

·       Number of internal promotions (by gender and by local/non-local) is reflective of local demographics

·       Number of incidents of child labor as defined by the ILO

·       Ratio of wage levels between men and women

Type

·       Performance. Quantitative

Data Sources

• Business internal accounts 

Comments

Tourism has also been instrumental in advancing gender equity and promoting women's role in the development process. This indicator addresses Goal 3 (Promote Gender Equality And Empower Women) of the eight Millennium Development Goals (MDGs), established in the Millennium Declaration, which was approved by 191 Heads of State and Presidents at the General Assembly of the United Nations in the year 2000.  Gender equality is not just an objective by itself but also key to achieving the other seven Development Goals.

See the comments on Criterion B.1 for further information and the glossary for the definition of “local”. “Minority” is defined in the glossary..   

Issue

Description

B.8.

The international or national legal protection of employees is respected, and employees are paid a living wage.

Rationale

Treating workers humanely and fairly makes good business sense by establishing stable labor relationships.  International and national regulation and conventions (including ILO) establish the minimum baseline for respecting workers rights.  Wages that allow employees to afford—at minimum—the provision of basic needs such as food, health care, shelter and education is critical for alleviating poverty and improving the quality of life in the local population as well as increasing productivity and employee retention.

Key requirements

·       Legal protection

·       Living wages paid

Potential indicators

·     Checklist of the following activities:

·    Salaries and benefits meet or exceed local, national and international regulations, (whichever are higher).

·    Payment is made into national social security system (if available) for qualified employees.

·    Overtime is paid for hours worked beyond the established work week hours and working hours must not exceed the legal maximums or those established by the International Labor Organization.

·     All employees have the right to annual paid vacation.

·    Health insurance or the equivalent is provided to all employees.

·    Employees receive training and capacity building.

·    Training & capacity building is provided for local community non-employee residents to develop qualified local labor force.

Type

·       Performance.  Quantitative

Data Sources

• Local and national authority records
• Business internal accounts
• Interviews with staff and management
• Interviews with unions or worker representative bodies

Comments

There is no simple, correct answer to the question of defining a living wage. Currently, companies and trading organizations have defined this by looking at comparative local wages and local cost of living.  The living wage should allow the employee to pay basic living expenses (housing, food, utilities and education), including health insurance.   The local living wage defined should at a minimum meet the following:

·       Salaries and benefits meet or exceed local and national regulations

·       Workers make at least the equivalent of $2/day (Millennium Development Goal)

·       Payment made into national social security system for qualified employees

·       Overtime is paid for hours worked beyond the established work week hours and working hours must not exceed the legal maximums or those established by the International Labor Organization

·       All employees have the right to annual paid vacation equivalent to a minimum of one day for each month worked (12 days or 2 work weeks per year) or the equivalent for part-time workers.

·       Health insurance or the equivalent is provided

Issue

Description

B.9.

The activities of the company do not jeopardize the provision of basic services, such as water, energy, or sanitation, to neighboring communities.

Rationale

Tourism businesses can alter, disrupt or strain community infrastructure and basic services adversely impacting local users and communities.   Regular communication with local communities to ensure that normal business operations do not reduce services available to the community or increase their cost and enhance the socioeconomic and environmental character of the destination is important. Service providers, such as utility suppliers may favor businesses over local populations.

Key requirements

·       Basic services not adversely affected

Potential indicators

·       Changes in rates of energy/water/waste/disposal costs

·       Number of incidents/reports of outages, reduced service or quality of product for the local community as compared to company

·       Changes in energy/water/waste disposal costs as a % of community income

·       Availability of water, waste, and energy to the local community has been reduced as the result of the business’ activities (yes/no)

Type

·       Performance.  Quantitative

Data Sources

•  Local service providers interviews and public documents
• Interviews with community users of services
• Utility bills from representative sample
• Company utility bills
• Reports and incidents registered on outages, disruptions and quality

Comments