Sodexho
Encyclopedia
Sodexo is a French multinational corporation
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...

 headquartered in the Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...

 suburb of Issy-les-Moulineaux
Issy-les-Moulineaux
Issy-les-Moulineaux is a commune in the southwestern suburban area of Paris, France. It is located from the centre of Paris. On 1 January 2003, Issy-les-Moulineaux became part of the Communauté d'agglomération Arc de Seine along with the other communes of Chaville, Meudon, Vanves and Ville-d'Avray...

, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

. 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
Elementary school
An elementary school or primary school is an institution where children receive the first stage of compulsory education known as elementary or primary education. Elementary school is the preferred term in some countries, particularly those in North America, where the terms grade school and grammar...

 through university
University
A university is an institution of higher education and research, which grants academic degrees in a variety of subjects. A university is an organisation that provides both undergraduate education and postgraduate education...

, hospitals and clinic
Clinic
A clinic is a health care facility that is primarily devoted to the care of outpatients...

s, assisted-living
Assisted living
Assisted living residences or assisted living facilities provide supervision or assistance with activities of daily living ; coordination of services by outside health care providers; and monitoring of resident activities to help to ensure their health, safety, and well-being.Assistance may...

 facilities, military bases, and correctional facilities
Prison
A prison is a place in which people are physically confined and, usually, deprived of a range of personal freedoms. Imprisonment or incarceration is a legal penalty that may be imposed by the state for the commission of a crime...

.

History

The company was launched in 1966 by Pierre Bellon
Pierre Bellon
Pierre Bellon is the founder of Sodexo, a multinational food service and facilities management company. He founded the company in France in 1966. Sodexo is a public traded company on New York and Paris exchanges....

 (Chairman) in Marseille
Marseille
Marseille , known in antiquity as Massalia , is the second largest city in France, after Paris, with a population of 852,395 within its administrative limits on a land area of . The urban area of Marseille extends beyond the city limits with a population of over 1,420,000 on an area of...

, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

, initially serving company restaurants, schools and hospitals under the name Société d'Exploitation Hotelière (Hotel Services Corporation). Today Sodexo is on the Fortune Global 500 list and the second largest employer among all French multi-national corporations.

Throughout the 1970s, the company expanded in France and internationally; first in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...

, then Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...

, and finally the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

. After an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...

 on the Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...

 Bourse
Bourse
Bourse may refer to:*exchange *stock exchange*Bourse : metro station, Paris, France*Bourse de Travail: French labor council-Exchanges:*Paris Bourse: Euronext Paris, historical Paris stock exchange...

 in 1983, the firm continued its expansion into North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...

, South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...

, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...

, and Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

.

Between 1995 and 2001, Société d'Exploitation Hotelière's holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...

 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.

In 1998, Sodexho merged with Marriott
Marriott International
Marriott International, Inc. is a worldwide operator and franchisor of a broad portfolio of hotels and related lodging facilities. Founded by J. Willard Marriott, the company is now led by son J.W. Marriott, Jr...

 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.

In 2002 Sodexho was listed on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...

.

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 participant and business entrepreneur, Earvin Magic Johnson
Magic Johnson
Earvin "Magic" Johnson Jr. is a retired American professional basketball player who played point guard for the Los Angeles Lakers of the National Basketball Association . After winning championships in high school and college, Johnson was selected first overall in the 1979 NBA Draft by the Lakers...

 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.

Since September 2007, its United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 operations have been headed by President and CEO George Chavel, who replaced Richard Macedonia.

In 2007, Sodexo launched its catering arm in United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 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. In 2010, Sodexo ranked number 1. According to the report, Sodexo “has led every other company in its ability to implement measure and assess strong internal diversity initiatives”

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
    Pierre Bellon
    Pierre Bellon is the founder of Sodexo, a multinational food service and facilities management company. He founded the company in France in 1966. Sodexo is a public traded company on New York and Paris exchanges....

    , 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%. It benefits from a Corporate Credit Rating of BBB+ (Standard & Poor).

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, 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
Stored-value card
A stored-value card refers to monetary value on a card not in an externally recorded account and differs from prepaid cards where money is on deposit with the issuer similar to a debit card...

 system in cooperation with multiple restaurants.

Name change

The company changed its official name from Sodexho Alliance to simply Sodexo after a shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....

 vote at the company's annual general meeting
Annual general meeting
An annual general meeting is a meeting that official bodies, and associations involving the public , are often required by law to hold...

 on 22 January 2008. 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. 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.

Controversy

There have been at least nine boycott
Boycott
A boycott is an act of voluntarily abstaining from using, buying, or dealing with a person, organization, or country as an expression of protest, usually for political reasons...

s of Sodexo, for varying reasons: at Clark University
Clark University
Clark University is a private research university and liberal arts college in Worcester, Massachusetts.Founded in 1887, it is the oldest educational institution founded as an all-graduate university. Clark now also educates undergraduates...

 in Worcester, Massachusetts
Worcester, Massachusetts
Worcester is a city and the county seat of Worcester County, Massachusetts, United States. Named after Worcester, England, as of the 2010 Census the city's population is 181,045, making it the second largest city in New England after Boston....

, at the School of Oriental and African Studies at the University of London
University of London
-20th century:Shortly after 6 Burlington Gardens was vacated, the University went through a period of rapid expansion. Bedford College, Royal Holloway and the London School of Economics all joined in 1900, Regent's Park College, which had affiliated in 1841 became an official divinity school of the...

, at the American University
American University
American University is a private, Methodist, liberal arts, and research university in Washington, D.C. The university was chartered by an Act of Congress on December 5, 1892 as "The American University", which was approved by President Benjamin Harrison on February 24, 1893...

 in Washington D.C., and at Université Laval in Quebec City
Quebec City
Quebec , also Québec, Quebec City or Québec City is the capital of the Canadian province of Quebec and is located within the Capitale-Nationale region. It is the second most populous city in Quebec after Montreal, which is about to the southwest...

, at Binghamton University
Binghamton University
Binghamton University, also formally called State University of New York at Binghamton, , is a public research university in the State of New York. The University is one of the four university centers in the State University of New York system...

 in New York, and Allegheny College
Allegheny College
Allegheny College is a private liberal arts college located in northwestern Pennsylvania in the town of Meadville. Founded in 1815, the college has about 2,100 undergraduate students.-Early history:...

 in Meadville, Pennsylvania, at DePauw University
DePauw University
DePauw University in Greencastle, Indiana, USA, is a private, national liberal arts college with an enrollment of approximately 2,400 students. The school has a Methodist heritage and was originally known as Indiana Asbury University. DePauw is a member of both the Great Lakes Colleges Association...

 in Indiana, Emory University
Emory University
Emory University is a private research university in metropolitan Atlanta, located in the Druid Hills section of unincorporated DeKalb County, Georgia, United States. The university was founded as Emory College in 1836 in Oxford, Georgia by a small group of Methodists and was named in honor of...

 in Atlanta, Georgia
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...

,at Nordea
Nordea
Nordea Bank AB is a Stockholm-based financial services group operating in Northern Europe. The bank is the result of the successive mergers and acquisitions of the Swedish, Finnish, Danish and Norwegian banks of Nordbanken, Merita Bank, Unibank and Kreditkassen that took place between 1997 and 2000...

 banks in Finland, at the University of Tampere
University of Tampere
The University of Tampere is a university in Tampere, Finland. It has 15,400 degree students and 2,100 employees. It was originally founded in 1925 in Helsinki as a Civic College , and from 1930 onwards it was known as a School of Social Sciences...

, Finland and at Loyola Marymount University
Loyola Marymount University
Loyola Marymount University is a comprehensive co-educational private Roman Catholic university in the Jesuit and Marymount traditions located in Los Angeles, California, United States...

 in Los Angeles. 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.

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

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
Union busting
Union busting is a wide range of activities undertaken by employers, their proxies, and governments, which attempt to prevent the formation or expansion of trade unions...

 and paying low wages.
Although one series of strikes at the University of Pittsburgh
University of Pittsburgh
The University of Pittsburgh, commonly referred to as Pitt, is a state-related research university located in Pittsburgh, Pennsylvania, United States. Founded as Pittsburgh Academy in 1787 on what was then the American frontier, Pitt is one of the oldest continuously chartered institutions of...

 led to the negotiation of higher wages and lower cost health insurance plans for the cafeteria workers, so far none of the Sodexo accounts targeted by the SEIU have unionized or even requested an election vote
NLRB election procedures
The National Labor Relations Board, an agency within the United States government, was created in 1935 as part of the National Labor Relations Act. Among the NLRB’s chief responsibilities is the holding of elections to permit employees to vote whether they wish to be represented by a particular...

. According to a statement from Sodexo, the SEIU is engaging in a smear campaign
Smear campaign
A smear campaign, smear tactic or simply smear is a metaphor for activity that can harm an individual or group's reputation by conflation with a stigmatized group...

 in an effort to drive out rival labor unions that have traditionally operated in the foodservice
Foodservice
Food Service or catering industry defines those businesses, institutions, and companies responsible for any meal prepared outside the home...

 industry as well as for general publicity
Publicity
Publicity is the deliberate attempt to manage the public's perception of a subject. The subjects of publicity include people , goods and services, organizations of all kinds, and works of art or entertainment.From a marketing perspective, publicity is one component of promotion which is one...

.

On April 16, 2010 SEIU workers organized a protest at the company's headquarters in Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...

 alleging unfair and illegal treatment of Sodexo workers. During the protest, Danny Glover
Danny Glover
Danny Lebern Glover is an American actor, film director, and political activist. Glover is perhaps best known for his role as Detective Roger Murtaugh in the Lethal Weapon film franchise.-Early life:...

 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."

In July 2010 Sodexo settled charges brought by the state of New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

 alleging overcharging for food service and facilities management at public schools. According to a case brought by New York State Attorney General
New York State Attorney General
The New York State Attorney General is the chief legal officer of the State of New York. The office has been in existence in some form since 1626, under the Dutch colonial government of New York.The current Attorney General is Eric Schneiderman...

 Andrew Cuomo
Andrew Cuomo
Andrew Mark Cuomo is the 56th and current Governor of New York, having assumed office on January 1, 2011. A member of the Democratic Party, he was the 64th New York State Attorney General, and was the 11th United States Secretary of Housing and Urban Development...

, Sodexo received rebates from suppliers without passing on the savings to its clients. 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
Medicare (United States)
Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over; to those who are under 65 and are permanently physically disabled or who have a congenital physical disability; or to those who meet other...

 program. The settlement did not include an admission of liability from the company. The case brought in New York has led to similar investigations in locations including New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...

, Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....

 and Berkeley, California
Berkeley, California
Berkeley is a city on the east shore of the San Francisco Bay in Northern California, United States. Its neighbors to the south are the cities of Oakland and Emeryville. To the north is the city of Albany and the unincorporated community of Kensington...

.

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, 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”.

In May 2011, 27 University of Washington
University of Washington
University of Washington is a public research university, founded in 1861 in Seattle, Washington, United States. The UW is the largest university in the Northwest and the oldest public university on the West Coast. The university has three campuses, with its largest campus in the University...

students were arrested during a sit in at the University's administrative offices for protesting the University's concessions contract with Sodexo. Shortly after, on May 19, another 13 students were arrested under similar circumstances.

External links

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