Sodexo

Sodexo S.A.

Type	Société Anonyme
Traded as	Euronext: SW
Industry	Hospitality
Founded	1966
Headquarters	Issy-les-Moulineaux, France
Key people	Pierre Bellon (Founder and Chairman), Michel Landel (CEO)
Services	Foodservice, facility management, service vouchers
Revenue	€15.26 billion (2009/2010)[1]
Operating income	€771 million (2009/2010)[1]
Profit	€409 million (2009/2010)[1]
Total assets	€11.78 billion (August 2010)[1]
Total equity	€2.739 billion (August 2010)[1]
Employees	379,140 (August 2010)[1]
Website	www.sodexo.com

Sodexo (formerly Sodexho Alliance) is a French multinational corporation headquartered in the Paris suburb of Issy-les-Moulineaux, France.^[2] Sodexo is one of the largest food services and facilities management companies in the world, with 380,000 employees, representing 130 nationalities, present on 34,000 sites in 80 countries. For fiscal year 2010 (ending August 2009) revenues reached 15.3 billion euros, with a market capitalization of 6.5 billion euros. Revenues by region represent: 37% Continental Europe, 38% North America, 8% UK and Ireland, 17% Rest of World.

Sodexo is organized into two entities: On-Site Service Solutions / Motivation Solutions. Sodexo services many sectors including private corporations, government agencies, schools from elementary through university, hospitals and clinics, assisted-living facilities, military bases, and correctional facilities.

History

The company was launched in 1966 by Pierre Bellon (Chairman) in Marseille, France, initially serving company restaurants, schools and hospitals under the name Société d'Exploitation Hotelière (English: Hotel Services Corporation). Today Sodexo is on the Fortune Global 500 list ^[3] and the second largest employer among all French multi-national corporations.

Throughout the 1970s, the company expanded in France and internationally; first in Belgium, then Africa, and finally the Middle East. After an initial public offering on the Paris Bourse in 1983, the firm continued its expansion into North America, South America, Japan, South Africa, and Russia.

Between 1995 and 2001, Société d'Exploitation Hotelière's holding company changed its name to Sodexho Alliance, and the company forged alliances with Gardner Merchant, Partena, Sogeres, Wood Dining Services and Universal Ogden Services. In 2000 Sodexho Alliance became the leader in remote site management after a merger with Universal Ogden Services.^[4]

In 1998, Sodexho merged with Marriott Management Services, at the time one of the largest food services companies in North America. Included in the merger was a name change to Sodexho Marriott Services. The merger helped Sodexho become one of the largest food services providers in America.^[4]

In 2002 Sodexho was listed on the New York Stock Exchange.

In 2005 Michel Landel was appointed Chief Executive Officer, succeeding Pierre Bellon, who continues as Chairman of the Board of Directors.

In the summer of 2006, the company made headlines for concluding a deal with former NBA^{[clarification needed]} participant and business entrepreneur, Earvin Magic Johnson and Magic Food Provisions, a subsidiary of Magic Johnson Enterprises. The initiative includes a marketing agreement and the formation of SodexhoMagic, LLC, a new joint venture that is 51 percent owned by Johnson.^{[citation needed]}

Since September 2007, its United States operations have been headed by President and CEO George Chavel, who replaced Richard Macedonia.

In 2007, Sodexo launched its catering arm in United Kingdom schools, using the brand name "For you...".

The DiversityInc Top 50 Companies for Diversity is the leading assessment of diversity management in corporate America and globally.^[5] In 2010, Sodexo ranked number 1. According to the report,^[6] Sodexo “has led every other company in its ability to implement measure and assess strong internal diversity initiatives”^[7]

Sodexo enters into two new partnerships in 2010: the first one with United Coffee, who will supply Sodexo with machines as well as fair-trade certified coffees; the other one with Numi, from which Sodexo has selected 100% organic teas.

In 2011, Sodexo enters an 8-year contract with the American government, by which the company commits itself to provide food services to 31 United States Marines Corps.

Administrative Board

The administrative board is currently composed by 12 members:

• Pierre Bellon, Chairman.
• Robert Baconnier, President of ANSA
• Rémi Baudin : Vice President
• Patricia Bellinger : Company Executive
• Astrid Bellon, Member of the Executive Board of Bellon SA
• Bernard Bellon, Chairman of the Board of Finadvance
• François-Xavier Bellon, General Director of Bright Yellow Plc
• Sophie Clamens, Chairman of the Managing Board of Bellon SA
• Paul Jeanbart, General Director of Rolaco
• Michel Landel, General Director of Sodexo
• Nathalie Szabo, Member of the Executive Board of Bellon SA
• Peter Thomson, Company Executive

Financial Figures (2009–2010)

Sodexo reported revenues of €15,3 billion in the 12 months ended February 2010 and an organic growth of 0.4%.^[8] It benefits from a Corporate Credit Rating of BBB+ (Standard & Poor).^[9]

Food services and facilities management

Sodexo offerings range from self-service food services that include staff restaurants, catering, executive dining, vending, and meal delivery, to integrated facilities management services that include both soft services (reception, concierge, cleaning, pantry, laundry, groundskeeping, waste management, Vendor Management etc.) and hard services (HVAC System, Electrical system including substation up to 220kV, energy efficiency & sustainability services, plumbing/Water Treatment Plant/Sewage Treatment Plant operation, annual equipment operation & maintenance contract, project management etc.).

Service Vouchers and Cards (SVC)

One of the top two companies worldwide in this sector,^{[citation needed]} Sodexo provides companies and public authorities with meal passes, restaurant vouchers, mobility passes, leisure passes, book cards, and training vouchers. In China, it operates a stored-value card system in cooperation with multiple restaurants.

Name change

The company changed its official name from Sodexho Alliance to simply Sodexo after a shareholder vote at the company's annual general meeting on 22 January 2008.^[10] The reason for removing the letter 'h' from Sodexho, cited in the group's 2007 annual report, is that "in certain languages an 'x' followed by an 'h' is difficult to pronounce". The company's corporate website also states that it draws emphasis away from the hotel services industry they were once associated with, as they now focus on many other directions.^[11] The logo of the company was also changed, dropping the five stars to a single star. The bar of the letter 'x' is also now curved, like a smile, supposedly suggestive of the company's desire to constantly seek and increase the satisfaction of their clients.^[10]

Controversy

There have been at least nine boycotts of Sodexo, for varying reasons: at Clark University in Worcester, Massachusetts, at the School of Oriental and African Studies at the University of London, at the American University in Washington D.C., and at Université Laval in Quebec City, at Binghamton University in New York, and Allegheny College in Meadville, Pennsylvania, at DePauw University in Indiana, Emory University in Atlanta, Georgia,^[12][13][14]at Nordea banks in Finland, at the University of Tampere, Finland and at Loyola Marymount University in Los Angeles.^[15] At DePauw University the students protested against Sodexo's alleged low pay, former investment in private prison businesses, and the lack of local food options.^[16]

At the Nordea banks the issue was a cut in wages after Sodexo took over the bank's workplace food services.^[17][18] After a successful boycott, the wages were raised.^[19]

In 2009, the SEIU launched a nationwide campaign against Sodexo with their stated objective of improving wage and job standards. Clean Up Sodexo serves as the online staging area for the campaign. In 2010, the SEIU recruited students at many U.S. colleges to support strikes and demonstrations in protest of Sodexo's alleged unfair labor practices including anti-union behavior and paying low wages. ^[20][21] Although one series of strikes at the University of Pittsburgh led to the negotiation of higher wages and lower cost health insurance plans for the cafeteria workers,^[22][23][24] so far none of the Sodexo accounts targeted by the SEIU have unionized or even requested an election vote. According to a statement from Sodexo, the SEIU is engaging in a smear campaign in an effort to drive out rival labor unions that have traditionally operated in the foodservice industry as well as for general publicity.^[25]

On April 16, 2010 SEIU workers organized a protest at the company's headquarters in Maryland alleging unfair and illegal treatment of Sodexo workers.^[26] During the protest, Danny Glover was arrested, was given a citation and later released. The Associated Press reports "Glover and others stepped past yellow police tape and were asked to step back three times at Sodexo headquarters. When they refused, Starks says officers arrested them." ^[27]

In July 2010 Sodexo settled charges brought by the state of New York alleging overcharging for food service and facilities management at public schools. According to a case brought by New York State Attorney General Andrew Cuomo, Sodexo received rebates from suppliers without passing on the savings to its clients.^[28] Sodexo paid a total of $30 million to the whistleblowers and affected schools, making it the largest ever settlement in New York made possible by the state's false claims act that didn't involve the Medicare program.^[29] The settlement did not include an admission of liability from the company.^[30] The case brought in New York has led to similar investigations in locations including New Jersey,^[31][32] Washington, D.C.^[33] and Berkeley, California.^[34]

The SEIU’s accusations against Sodexo now seem to be back on the table. The National Labor Relations Board, an independent federal agency vested with the power to safeguard employees' rights, accuses the SEIU of engaging illegal tactics,^[35] and the social credit rating agencies renew their confidence in Sodexo for its socially responsible investing (SRI) during the year 2010 and 2011. Sodexo is, in a lawsuit filed in March 2011, accusing the SEIU (Service Employees International Union) of “engaging in illegal tactics in its effort to unionize workers”.^[36]

In May 2011, 27 University of Washington students were arrested during a sit in at the University's administrative offices for protesting the University's concessions contract with Sodexo.^[37] Shortly after, on May 19, another 13 students were arrested under similar circumstances.^[38]

Competitors

• Compass Group PLC
• Aramark

See also

• Sodexo Justice Services

References

1. ^ ^{a b c d e f} "Annual Report 2010" (PDF). Sodexo. http://www.sodexo.com/group_en/Images/ddr-eng-mise-en-ligne_tcm13-519095.pdf. Retrieved 4 May 2011. 
2. ^ "Contact Us." Sodexo. Retrieved on 1 June 2010.
3. ^ "Global 500 : 437. Sodexo". CNN. http://money.cnn.com/magazines/fortune/global500/2010/snapshots/10846.html. Retrieved April 12, 2010. 
4. ^ ^{a b} "Sodexo History Milestones". http://www.sodexo.com/group_en/the-group/history/milestones/milestones.asp. Retrieved 03-12-2008. ^{[dead link]}
5. ^ The DiversityInc Top 50 Companies for Diversity® | DiversityInc – Cultural Diversity – Diversity Management – Workplace Diversity – Workforce Diversity
6. ^ Sodexo No. 1 on the 2010 DiversityInc Top 50 Companies for Diversity®
7. ^ http://www.diversityinc.com/article/7252/
8. ^ http://www.sodexo.com/group_en/press/news/2010/101110-fiscal-2010-annual-results.asp?listURL=/group_en/press/news/2010/press-release-2010.asp%7C
9. ^ http://www.sodexo.com/group_en/Images/S%26P_Sodexo_28May2010_tcm13-456878.pdf
10. ^ ^{a b} "Sodexho becomes Sodexo, the reference brand in Quality of Life services" (Press release). Sodexo. 2008-01-23. http://www.sodexo.com/group_en/press/news/group/2008/sodexho-becomes-sodexo.asp. Retrieved 2008-01-23. 
11. ^ "Annual Report 2007" (PDF). Sodexho Alliance. http://www.sodexo.com/group_en/Images/sodexo_annual_report_2006-2007_tcm13-97554.pdf. Retrieved 2008-01-19. ^{[dead link]}
12. ^ Group Rekindles Debate on Sodexo Labor Issues | The Emory Wheel
13. ^ Sodexo Rally Features Notable Faces, Amasses Support | The Emory Wheel
14. ^ Emory Police Arrest Seven for Trespassing on Quad | The Emory Wheel
15. ^ Farragher, Molly (2009-12-06). "Students lose appetite for Sodexo dining". Los Angeles Loyolan. http://laloyolan.com/uncategorized/students-lose-appetite-for-sodexo-dining/. Retrieved 2010-08-19. 
16. ^ Lamkin, Robin (2006-09-19). "Students plan Sodexho boycott". The Depauw. http://media.www.thedepauw.com/media/storage/paper912/news/2006/09/19/News/Students.Plan.Sodexho.Boycott-2287807.shtml. Retrieved 2010-08-19. 
17. ^ Nordean toimihenkilöt boikotoivat Sodexhoa - HS.fi - Politiikka
18. ^ Sodexho Services Group Ltd.: Private Company Information - BusinessWeek
19. ^ Julkaisutyökalu | Ammattiliitto Suora
20. ^ Bush, Bill (2010-04-15). "Ohio State protest ends with 20-25 arrests". The Columbus Dispatch. http://www.dispatch.com/live/content/local_news/stories/2010/04/15/arrests-end-Ohio-State-protest.html?sid=101. Retrieved 2010-08-19. 
21. ^ Brown, Ben (2010-04-15). "25 protestors arrested for blocking High Street". The Lantern. http://www.thelantern.com/campus/25-protestors-arrested-for-blocking-high-street-1.1345041. Retrieved 2010-08-19. 
22. ^ "200 Sodexo Cafeteria Workers at the UPitt Walk Off to Protest Intimidation & Unaffordable Health Care". NY daily news. 2010-04-27. http://www.seiu.org/2010/04/200-sodexo-cafeteria-workers-at-the-upitt-walk-off-to-protest-intimidation-unaffordable-health-care.php. Retrieved 2010-04-27. 
23. ^ "Union says Pitt cafeteria workers have 3-year deal". BusinessWeek. 2010-08-18. http://post-gazette.com/pg/10230/1080859-100.stm. Retrieved 2010-08-18. ^{[dead link]}
24. ^ "Pitt cafeteria workers approve contract". Pittsburgh Post Gazette. 2010-08-18. http://www.businessweek.com/ap/financialnews/D9HLVG1O0.htm. Retrieved 2010-08-19. 
25. ^ "Sodexo Response to SEIU Activity". Sodexo. 2010-10-21. http://www.sodexousa.com/usen/newsroom/press/press10/sodexostatement.asp. Retrieved 2011-02-03. 
26. ^ "Actor Danny Glover arrested during Maryland labor union protest". New York: NY daily news. 2010-04-17. http://www.nydailynews.com/gossip/2010/04/17/2010-04-17_actor_danny_glover_arrested_in_maryland_labor_protest.html. Retrieved 2010-04-18. 
27. ^ Danny Glover & 11 Others Arrested During Union Protest In Maryland | Access Hollywood - Celebrity News, Photos & Videos
28. ^ Capitol Confidential » Cuomo: Sodexho swallows fine
29. ^ Sodexo agrees to pay New York State $20m - 7/22/2010 - Caterer and Hotelkeeper
30. ^ Spector, Joseph (22 July 2010). "Food provider that overcharged schools must pay $20 million settlement". The Journal News. http://www.lohud.com/article/20100722/NEWS05/7220353/Food-provider-that-overcharged-schools-must-pay-20-million-settlement. Retrieved 21 August 2010. ^{[dead link]}
31. ^ http://www.app.com/article/20100811/NEWS03/100811140/Lawmakers-want-NJ-to-probe-Sodexo-food-service-company
32. ^ Assembly members question practices of food-service provider - NJ.com
33. ^ Cheh Asks D.C. Attorney General for Help on School Food Rebates | The Slow Cook
34. ^ http://www.app.com/article/20100819/NEWS/8190344/Berkeley-to-ensure-schools-got-all-possible-discounts-from-food-service-provider-Sodexo
35. ^ NLRB: SEIU Illegally Punished Two Sodexo Employees Who Opposed SEIU | LaborUnionReport.com
36. ^ "Sodexo sues SEIU over tactics to unionize workers". Reuters. 2011-03-17. http://www.reuters.com/article/2011/03/17/sodexo-unions-idUSN1727026220110317. 
37. ^ Wong, Brittany (2011-05-11). "25 UW students arrested in sit-in over vendor". Seattle Times. http://seattletimes.nwsource.com/html/localnews/2015028965_sodexocaption12m.html. Retrieved 13 May 2011. 
38. ^ Schweppe, Sarah. "We’re not going away". The Daily of the University of Washington. http://dailyuw.com/2011/5/20/were-not-going-away/. 

External links

• Official website
• Sodexo (in Spain)