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Buying and hiring locally

Using local contractors and suppliers, and hiring local staff are ways we can create local benefits and build trust in the places where we operate. It directly contributes to the local economy, creates jobs and builds skills. In 2008, we spent an estimated $19 billion with locally owned companies in developing countries.

Buying locally

We have been able to “localize” the majority of the workforce at many operations

Negotiating the best deal is essential when spending billions of dollars a year on materials and services. We support fair and ethical competition in the market places from which we procure goods and services. To do this, we have a global tendering and contract management process that meets only our needs, but also the needs of our suppliers.

But thinking globally does not mean that local suppliers miss out. We actively promote the use of local suppliers and contractors and train local companies to help them meet our standards, so they can compete for contracts.

We help local communities set up businesses to sell us goods and services. For example, in the Athabasca Oil Sands Project, Shell Canada helped the neighbouring aboriginal community set up trucking, maintenance, catering and security businesses. They now work for the project and other oil sands operators.

Buying locally also helps create opportunities for minorities and women. In South Africa for example, in support of government policies, over 60% of our expenditure is with black economic empowerment companies and we continue to champion minority and female-owned businesses in the USA.

Hiring locally

Hiring local staff is another important contribution. We have programmes to attract and train local staff in more than 90% of the low and medium income countries where we operate. These programmes include local recruiting efforts, and education and skill building programmes. A few of these programmes are required by governments, but most are voluntary.

Through early planning and training, we have been able to “localise” the majority of the workforce at many operations, even in places that initially lacked the technical and commercial skills, and the sheer number of workers needed. In 2008, according to our human resources system, more than 90% of our staff worldwide were locals.