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Sodexo’s Plan:
A Better Tomorrow Starts Today
Sodexo
1
2 –
GROUP KEY FIGURES (FY 2014)
3 –
€ 18bn
revenues
419,317
employees
18th
largest employer
worldwide
75 million
consumers
served daily
32,659
sites
80countries
SODEXO
IS THE WORLD’S LEADING
QUALITY OF LIFE SERVICES
COMPANY
4 –
On-site
Services
Benefits
and Rewards
Services
Personal
and Home Services
ON-SITE SERVICES
5 –
Corporate
Defense
Justice
Services
Remote Sites
Sports and
Leisure
Health Care
Seniors
 Education
Across 8 client segments
BETTER TOMORROW PLAN
OUR SOCIAL & ENVIRONMENTAL COMMITMENT
6 –
our Corporate Social Responsibility road map,
setting our social and environmental commitments
around 4 priorities
Contributeto
local communities
Develop our
employees and
promote diversity
Promote nutrition,
health and well-being
Protect the
environment
Global DJSI Industry Leader
for 10 years in a row
RATINGS AND REPUTATION
0 50 100
Economic
Environment
Social
Overall
Sodexo
Industry Avg
Carbon Disclosure Project
(Sodexo reports to CDP’s climate change &
forests programs)
7 –
GLOBAL COMPACT
For the third time Sodexo has
qualified for the Global Compact
Advanced level, meeting all 24
criteria.
The ‘Moral’ Firm
2
8 –
Most simple calculation:
HOW DO WE KNOW WHAT A COMPANY IS ‘WORTH’?
Cost for a share
of stock
Number of
shares
outstanding
9 –
Tangible Values
Intangible Values
Financial Capital Physical Assets
(Generally Audited Financial Information)
(Generally Non-audited, Non-financial Information)
Intellectual
property
Unallocated
goodwill
Labor
environment
Customer
loyalty
Employee
engagement
Community
support
Brand Image
Reputation
Value is based on your relationships with
■Customers
■Employees
■Owners/Investors
■Suppliers
■Competitors
■Communities
■Government agencies/regulators
INTANGIBLE ASSETS
11 –
To improve company valuation,
improve relationships with stakeholders.
Good stakeholder relationships are necessary
for and lead to a Sustainable Corporation
THEREFORE…
12 –
MCKINSEY GLOBAL SURVEY 2014
management of
corporate reputation for
sustainability
• increasingly
important to
executives
• highest value-
creation potential for
their industries over
the next five years.
 Needed for quality income
 Necessary to get low cost of capital
 Critical to hire/retain the best employees
 Gets you through rough times
 Avoids commodity pricing/builds value added
REPUTATIONAL CAPITAL (BRAND EQUITY = GOODWILL)
14 –
15
70% of market value (avg)
80% for S&P 500 Companies
90% for technology companies
INTANGIBLE ASSETS – MORE THAN MEETS THE EYE
Brand Finance
Monks/Lajoux, Corporate Valuation
Company Market value Balance sheet
assets
Goodwill
Microsoft $279 billion 33.7% 66.3%
Best Buy $26.3 billion 39% 61%
Starbucks $27.8 billion 12% 88%
Goldman Sachs $61.7 billion 1.1% 98.9%
Burlington Northern and
Santa Fe
$29.2 billion $30.3 billion (103%) None
Caterpillar $49 billion 95.9% 4.1%
Apple $58 billion 19.8% 80.2%
2005: BEFORE THE CRASH
16 –
17 –
THEORY OF THE MORAL FIRM
(self interest considered upon the whole)
Reputational
Capital
Social
Capital
Financial
Capital
Physical
Capital
Human
Capital
Conversion
Process
Output
(Goods/
Services)
Customers
$$$
Sustainable
profits;
maximum
value
INPUTS
RETURN ON CAPITAL
(preserve adequacy of capital inputs)
18 –
The Social Responsibility of Business is to Increase its
Profits
There is one and only one social responsibility of business–
to use its resources and engage in activities designed to
increase its profits so long as it stays within the rules of the
game, which is to say, engages in open and free competition
without deception or fraud.
Milton Friedman, 1970, New York Times Magazine
MILTON FRIEDMAN
19 –
MILTON FRIEDMAN
The Social Responsibility of Business is to Increase its
Profits
There is one and only one social responsibility of business–
to use its resources and engage in activities designed to
increase its profits so long as it stays within the rules of the
game, which is to say, engages in open and free competition
without deception or fraud.
That responsibility is to conduct the business in accordance
with their desires, which generally will be to make as much
money as possible while conforming to the basic rules of the
society, both those embodied in law and those embodied in
ethical custom.
Milton Friedman, 1970, New York Times Magazine
20 –
THEORY OF THE MORAL FIRM
(self interest considered upon the whole)
Reputational
Capital
Social
Capital
Financial
Capital
Physical
Capital
Human
Capital
Conversion
Process
Output
(Goods/
Services)
Customers
$$$
Sustainable
profits;
maximum
value
INPUTS
RETURN ON CAPITAL
(preserve adequacy of capital inputs)
21 –
22 –
Five Keys To Build
Reputational Capital
3
23 –
FIVE KEYS TO BUILD REPUTATIONAL CAPITAL
1. Alignment with your core business model
(why)
2. Integration with day-to-day operations (how)
3. Employee Engagement and Empowerment
(who)
4. Tangible Local Benefits (where)
5. Maximize Stakeholder Engagement (what)
24 –
© John Friedman
1. ALIGNMENT WITH YOUR CORE BUSINESS MODEL
Our Vision 2020
Financial
Objectives
Expand premium offer to
capture higher profit sales
Increase sales volume of
existing customers
Improve margins Reduce DSOs
Ensure compliance
Operational
Objectives
Identify best practices
Integrate best practices
throughout company
Increase market share Reduce raw materials costs
Reduce transportation
costs
Reduce lost time accidents
Reduce fines/mediation
Sales
Objectives
Expand share of business
with existing clients
100 percent retention of
existing clients
Win new business Competitive analysis
Cultural
Objectives
Attract / hire / retain the
best talent
Culture of continuous
Improvement
Align HR processes and
incentives with desired
outcomes
Increase productivity
Reduce turnover
25 –
1. ALIGNMENT WITH YOUR CORE BUSINESS MODEL
CR objectives
Businesspriorities
1. ALIGNMENT WITH YOUR CORE BUSINESS MODEL
2. INTEGRATION WITH DAY TO DAY
28 –
2. INTEGRATION WITH DAY TO DAY
29 –
2. INTEGRATION WITH DAY TO DAY
30 –
2. INTEGRATION WITH DAY TO DAY
31 –
Influence
How our values are integrated into
business
Actions
How we live our values
Expertise
How we encourage others to adopt
Brand promise of standards/innovations
Be the benchmark for Operational Excellence
Our culture as differentiator
Brand promise standards/innovations
Be the benchmark for Operational Excellence
Leverage the strength of our people
Our culture as differentiator
   Promise Plan Program Performance   
• Business
practices
(labor, d&I,
etc.)
• Food
Industry
• Supply chain • 18
Commit-
ments
• Goals
• Timelines
• Milestones
• Initiatives
• Programs
• Efforts
• Measurement
• Reporting
• Third party
validations
• Drive client actions
• Drive customer decisions
• Drive public
awareness/expectations
• Behavior change
Health &
Wellness
• Suppliers/partners
creating alternative
ingredients;
ensuring a market
for these new
products
• Research based
• Health &
Wellness
Solutions
• Varied &
Balanced
Food
Options
• Reduced
Intake of
Sugar, Salt
and Fats
• Dietitian
Expert
Network
• 10 Golden
Rules
• Recipe co-
development
• Expertise
• Public
engagemen
t
• USDA food
guidelines
• Percent of
accounts w/
dietitians
• % offering MN
• Bucket list
• Results
releases
• Outcome
Results
• Partnership for a Healthier America
Environment • WasteLESS Week • Sustainabl
e supplies
• Energy &
Emissions
• Water &
Effluents
• Materials &
Waste
• Site Wins
(best
practices)
• Value Chain
• Grow energy
business
• WasteWatch
• Endocube
• EquiLulnch
• Take One!
• WasteLESS Week
• Case Studies
• Pilot Programs
• Universal Roll Out
• International Food Waste Coalition –
founding member
Local
communities
• Safety training
• Quality training
• Expertise sharing
• Access to markets
• Economic
empowerment
• Standard of Living
• Quality of Life
• Stop
Hunger
• Local
community
developme
nt
• Fairly
Traded
Certified
• Engage
suppliers
• Social, env &
economic
development
• Economic
development
•Supply
Chain
Inclusion
Program
• # and % of
SMEs
• % of spend
shared with
SMEs
• Access to markets
• Increasing markets
3. EMPOWER AND ENGAGE EMPLOYEES
33 –
1
Inspire long term behavior
change
3
5,364 sites participated in WasteLESS Week in 2014
Raise awareness of the work
Sodexo has been doing to
reduce the waste of
resources
Encourage employees and
consumers to take action
1
2
What is WasteLESS Week?
• WasteLESS Week is a five day campaign that runs during
October at Sodexo sites around the world.
• It empowers consumers, clients and Sodexo employees to
reduce waste by celebrating the benefits of wasting less
food, water, energy, paper and raw materials.
• It supports our overall waste reduction efforts, using
the site survey results to create customized messages for
clients based on local actions and results.
Why is Sodexo doing it?
• We know that the best way to encourage a new habit is to
show people the benefits of the new behavior, making it
easy, simple, rewarding and desirable.
How does it work?
• On-site materials such as posters, videos and
activities, we showcase the quality of life benefits they
experience when they waste less.You have the Power
to turn trash into treasure
© 2014, Sodexo
SUPPLY CHAIN INCLUSION PROGRAM
Launched in 2013
All countries will develop strong and sustainable
relationships with suppliers in at least one of the following
categories:
• Small and Medium Enterprises (SME’s), including social
and micro-enterprises;
• Suppliers from minority and other under-represented
and/or protected groups, with an emphasis on women-
owned businesses;
• Major Sodexo suppliers demonstrating a diverse workforce
composition, actively embracing diversity and inclusion
and promoting local supply chain inclusion.
34 –
SUPPLY CHAIN INCLUSION PROGRAM
Sodexo set 2020 targets for supply chain inclusion based on
progress to date, including:
• 26 countries have specific initiatives to integrate SMEs
(Small and Medium Enterprises) into their supply chains;
• 148 active agreements are in place with local communities,
clients, NGOs and associations to promote inclusion of
SMEs in Sodexo’s supply chain;
• 7 countries have a system in place to track which of their
suppliers are SME's (Small and Medium Enterprises);
• 20 countries have conducted Diversity and Inclusion
training for supply team members.
35 –
36 –
4. TANGIBLE LOCAL BENEFITS
37 –
5. MAXIMIZE STAKEHOLDER ENGAGEMENT
Simple, clear, direct messages
• Does not ‘talk down’ or ‘shame’
them for prior behavior
Positive reinforcement
• Show them WHAT they can do
• Tell them HOW
• Show them WHY it matters - that
they CAN make a difference with
customizable messages about
what they have done and
achieved
Make it fun, interesting
38 – Title of the document or activity name – Month XX, 2012 – Insert tab > Header/Footer
LAYAR EXAMPLE
The poster
39 –
WATCH THE VIDEO
MAXIMIZE STAKEHOLDER ENGAGEMENT – WHAT DO
WE WANT THEM TO DO?
40 –
Stakeholder Group Desired Outcome Approach
Site Managers
Think: This is an important opportunity to
engage my client and inspire my team
Feel: Enabled, supported and confident
Do: Engage client, lead team
Make it easy, inspiring and
effective
Employees
Think: Sodexo cares about sustainability
Feel: Proud, this is fun
Do: Run the week, participate, engage
consumers
Make it fun, make it simple
Clients
Think: This adds value to my organisation
Feel: Sodexo are helping me achieve my
objectives
Do: Give permission and support, engage
with manager post WasteLESS week
Make it effective
Show clear benefits
Consumers
Think: Sodexo cares about sustainability
and is taking action
Feel: This is fun and inspiring,
sustainability can improve my quality of life.
Do: Participate, change behaviors
Make it fun but also meaningful
and relevant, show me the
impact I've made, show me that
I'm not the only one doing this
Sodexo’s Plan:
A Better Tomorrow Starts Today
and it starts with you

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A Better Tomorrow Starts Today AHC

  • 1. Sodexo’s Plan: A Better Tomorrow Starts Today
  • 3. GROUP KEY FIGURES (FY 2014) 3 – € 18bn revenues 419,317 employees 18th largest employer worldwide 75 million consumers served daily 32,659 sites 80countries
  • 4. SODEXO IS THE WORLD’S LEADING QUALITY OF LIFE SERVICES COMPANY 4 – On-site Services Benefits and Rewards Services Personal and Home Services
  • 5. ON-SITE SERVICES 5 – Corporate Defense Justice Services Remote Sites Sports and Leisure Health Care Seniors  Education Across 8 client segments
  • 6. BETTER TOMORROW PLAN OUR SOCIAL & ENVIRONMENTAL COMMITMENT 6 – our Corporate Social Responsibility road map, setting our social and environmental commitments around 4 priorities Contributeto local communities Develop our employees and promote diversity Promote nutrition, health and well-being Protect the environment
  • 7. Global DJSI Industry Leader for 10 years in a row RATINGS AND REPUTATION 0 50 100 Economic Environment Social Overall Sodexo Industry Avg Carbon Disclosure Project (Sodexo reports to CDP’s climate change & forests programs) 7 – GLOBAL COMPACT For the third time Sodexo has qualified for the Global Compact Advanced level, meeting all 24 criteria.
  • 9. Most simple calculation: HOW DO WE KNOW WHAT A COMPANY IS ‘WORTH’? Cost for a share of stock Number of shares outstanding 9 –
  • 10. Tangible Values Intangible Values Financial Capital Physical Assets (Generally Audited Financial Information) (Generally Non-audited, Non-financial Information) Intellectual property Unallocated goodwill Labor environment Customer loyalty Employee engagement Community support Brand Image Reputation
  • 11. Value is based on your relationships with ■Customers ■Employees ■Owners/Investors ■Suppliers ■Competitors ■Communities ■Government agencies/regulators INTANGIBLE ASSETS 11 –
  • 12. To improve company valuation, improve relationships with stakeholders. Good stakeholder relationships are necessary for and lead to a Sustainable Corporation THEREFORE… 12 –
  • 13. MCKINSEY GLOBAL SURVEY 2014 management of corporate reputation for sustainability • increasingly important to executives • highest value- creation potential for their industries over the next five years.
  • 14.  Needed for quality income  Necessary to get low cost of capital  Critical to hire/retain the best employees  Gets you through rough times  Avoids commodity pricing/builds value added REPUTATIONAL CAPITAL (BRAND EQUITY = GOODWILL) 14 –
  • 15. 15 70% of market value (avg) 80% for S&P 500 Companies 90% for technology companies INTANGIBLE ASSETS – MORE THAN MEETS THE EYE Brand Finance Monks/Lajoux, Corporate Valuation
  • 16. Company Market value Balance sheet assets Goodwill Microsoft $279 billion 33.7% 66.3% Best Buy $26.3 billion 39% 61% Starbucks $27.8 billion 12% 88% Goldman Sachs $61.7 billion 1.1% 98.9% Burlington Northern and Santa Fe $29.2 billion $30.3 billion (103%) None Caterpillar $49 billion 95.9% 4.1% Apple $58 billion 19.8% 80.2% 2005: BEFORE THE CRASH 16 –
  • 18. THEORY OF THE MORAL FIRM (self interest considered upon the whole) Reputational Capital Social Capital Financial Capital Physical Capital Human Capital Conversion Process Output (Goods/ Services) Customers $$$ Sustainable profits; maximum value INPUTS RETURN ON CAPITAL (preserve adequacy of capital inputs) 18 –
  • 19. The Social Responsibility of Business is to Increase its Profits There is one and only one social responsibility of business– to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud. Milton Friedman, 1970, New York Times Magazine MILTON FRIEDMAN 19 –
  • 20. MILTON FRIEDMAN The Social Responsibility of Business is to Increase its Profits There is one and only one social responsibility of business– to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom. Milton Friedman, 1970, New York Times Magazine 20 –
  • 21. THEORY OF THE MORAL FIRM (self interest considered upon the whole) Reputational Capital Social Capital Financial Capital Physical Capital Human Capital Conversion Process Output (Goods/ Services) Customers $$$ Sustainable profits; maximum value INPUTS RETURN ON CAPITAL (preserve adequacy of capital inputs) 21 –
  • 23. Five Keys To Build Reputational Capital 3 23 –
  • 24. FIVE KEYS TO BUILD REPUTATIONAL CAPITAL 1. Alignment with your core business model (why) 2. Integration with day-to-day operations (how) 3. Employee Engagement and Empowerment (who) 4. Tangible Local Benefits (where) 5. Maximize Stakeholder Engagement (what) 24 – © John Friedman
  • 25. 1. ALIGNMENT WITH YOUR CORE BUSINESS MODEL Our Vision 2020 Financial Objectives Expand premium offer to capture higher profit sales Increase sales volume of existing customers Improve margins Reduce DSOs Ensure compliance Operational Objectives Identify best practices Integrate best practices throughout company Increase market share Reduce raw materials costs Reduce transportation costs Reduce lost time accidents Reduce fines/mediation Sales Objectives Expand share of business with existing clients 100 percent retention of existing clients Win new business Competitive analysis Cultural Objectives Attract / hire / retain the best talent Culture of continuous Improvement Align HR processes and incentives with desired outcomes Increase productivity Reduce turnover 25 –
  • 26. 1. ALIGNMENT WITH YOUR CORE BUSINESS MODEL CR objectives Businesspriorities
  • 27. 1. ALIGNMENT WITH YOUR CORE BUSINESS MODEL
  • 28. 2. INTEGRATION WITH DAY TO DAY 28 –
  • 29. 2. INTEGRATION WITH DAY TO DAY 29 –
  • 30. 2. INTEGRATION WITH DAY TO DAY 30 –
  • 31. 2. INTEGRATION WITH DAY TO DAY 31 –
  • 32. Influence How our values are integrated into business Actions How we live our values Expertise How we encourage others to adopt Brand promise of standards/innovations Be the benchmark for Operational Excellence Our culture as differentiator Brand promise standards/innovations Be the benchmark for Operational Excellence Leverage the strength of our people Our culture as differentiator    Promise Plan Program Performance    • Business practices (labor, d&I, etc.) • Food Industry • Supply chain • 18 Commit- ments • Goals • Timelines • Milestones • Initiatives • Programs • Efforts • Measurement • Reporting • Third party validations • Drive client actions • Drive customer decisions • Drive public awareness/expectations • Behavior change Health & Wellness • Suppliers/partners creating alternative ingredients; ensuring a market for these new products • Research based • Health & Wellness Solutions • Varied & Balanced Food Options • Reduced Intake of Sugar, Salt and Fats • Dietitian Expert Network • 10 Golden Rules • Recipe co- development • Expertise • Public engagemen t • USDA food guidelines • Percent of accounts w/ dietitians • % offering MN • Bucket list • Results releases • Outcome Results • Partnership for a Healthier America Environment • WasteLESS Week • Sustainabl e supplies • Energy & Emissions • Water & Effluents • Materials & Waste • Site Wins (best practices) • Value Chain • Grow energy business • WasteWatch • Endocube • EquiLulnch • Take One! • WasteLESS Week • Case Studies • Pilot Programs • Universal Roll Out • International Food Waste Coalition – founding member Local communities • Safety training • Quality training • Expertise sharing • Access to markets • Economic empowerment • Standard of Living • Quality of Life • Stop Hunger • Local community developme nt • Fairly Traded Certified • Engage suppliers • Social, env & economic development • Economic development •Supply Chain Inclusion Program • # and % of SMEs • % of spend shared with SMEs • Access to markets • Increasing markets
  • 33. 3. EMPOWER AND ENGAGE EMPLOYEES 33 – 1 Inspire long term behavior change 3 5,364 sites participated in WasteLESS Week in 2014 Raise awareness of the work Sodexo has been doing to reduce the waste of resources Encourage employees and consumers to take action 1 2 What is WasteLESS Week? • WasteLESS Week is a five day campaign that runs during October at Sodexo sites around the world. • It empowers consumers, clients and Sodexo employees to reduce waste by celebrating the benefits of wasting less food, water, energy, paper and raw materials. • It supports our overall waste reduction efforts, using the site survey results to create customized messages for clients based on local actions and results. Why is Sodexo doing it? • We know that the best way to encourage a new habit is to show people the benefits of the new behavior, making it easy, simple, rewarding and desirable. How does it work? • On-site materials such as posters, videos and activities, we showcase the quality of life benefits they experience when they waste less.You have the Power to turn trash into treasure © 2014, Sodexo
  • 34. SUPPLY CHAIN INCLUSION PROGRAM Launched in 2013 All countries will develop strong and sustainable relationships with suppliers in at least one of the following categories: • Small and Medium Enterprises (SME’s), including social and micro-enterprises; • Suppliers from minority and other under-represented and/or protected groups, with an emphasis on women- owned businesses; • Major Sodexo suppliers demonstrating a diverse workforce composition, actively embracing diversity and inclusion and promoting local supply chain inclusion. 34 –
  • 35. SUPPLY CHAIN INCLUSION PROGRAM Sodexo set 2020 targets for supply chain inclusion based on progress to date, including: • 26 countries have specific initiatives to integrate SMEs (Small and Medium Enterprises) into their supply chains; • 148 active agreements are in place with local communities, clients, NGOs and associations to promote inclusion of SMEs in Sodexo’s supply chain; • 7 countries have a system in place to track which of their suppliers are SME's (Small and Medium Enterprises); • 20 countries have conducted Diversity and Inclusion training for supply team members. 35 –
  • 37. 4. TANGIBLE LOCAL BENEFITS 37 –
  • 38. 5. MAXIMIZE STAKEHOLDER ENGAGEMENT Simple, clear, direct messages • Does not ‘talk down’ or ‘shame’ them for prior behavior Positive reinforcement • Show them WHAT they can do • Tell them HOW • Show them WHY it matters - that they CAN make a difference with customizable messages about what they have done and achieved Make it fun, interesting 38 – Title of the document or activity name – Month XX, 2012 – Insert tab > Header/Footer
  • 39. LAYAR EXAMPLE The poster 39 – WATCH THE VIDEO
  • 40. MAXIMIZE STAKEHOLDER ENGAGEMENT – WHAT DO WE WANT THEM TO DO? 40 – Stakeholder Group Desired Outcome Approach Site Managers Think: This is an important opportunity to engage my client and inspire my team Feel: Enabled, supported and confident Do: Engage client, lead team Make it easy, inspiring and effective Employees Think: Sodexo cares about sustainability Feel: Proud, this is fun Do: Run the week, participate, engage consumers Make it fun, make it simple Clients Think: This adds value to my organisation Feel: Sodexo are helping me achieve my objectives Do: Give permission and support, engage with manager post WasteLESS week Make it effective Show clear benefits Consumers Think: Sodexo cares about sustainability and is taking action Feel: This is fun and inspiring, sustainability can improve my quality of life. Do: Participate, change behaviors Make it fun but also meaningful and relevant, show me the impact I've made, show me that I'm not the only one doing this
  • 41. Sodexo’s Plan: A Better Tomorrow Starts Today and it starts with you