Sodexo

a)

Sodexo designs, manages and delivers comprehensive service solutions through on-site service solutions and motivation Solutions. Quality of life services play an important role in organizational performance. Based on this conviction, Sodexo serves as the strategic partner for companies, institutions and local authorities who place a premium on performance. Sodexo is organized into two entities: Food Services and Facilities Management and Service Vouchers and Cards. 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.
Sodexo’s 380,000 employees, in 80 countries around the world, design, manage and deliver an unrivalled array of comprehensive On-site service solutions and motivation solutions. In this, Sodexo has invented a new form of service business that promotes the fulfilment of employees and contributes to the economic, social and environmental development of the local communities with which they work.

b)

The challenges that the company is facing are principally: Firstly loyalty, a foundation of loyalty, shared by Sodexo with its clients, employees, and shareholders, based on honest, open relations. Trust is one of the cornerstones of operations in their organization. Secondly respect for people, humanity is at the heart of Sodexo?s business. Sodexo is committed to providing equal opportunities regardless of race, origin, age, gender, beliefs, religion or lifestyle choices. Improving quality of life means according each person respect, dignity and consideration. Thirdly transparency, this is one of Sodexo’s major principles, and is a constant with all stakeholders: clients and consumers, employees and shareholders. And finally business Integrity, Sodexo does not tolerate any practice that is not born of honesty, integrity and fairness, anywhere in the world where they do business. Sodexo clearly communicate its position on this issue to their clients, suppliers and employees, and expect them to share their rejection of corrupt and unfair practices.

c)

During the last years, Sodexo acted in line to the arousal of these new values and responsibilities of the companies. In 2006, The Group Executive Committee recommended to the Board of Directors the adoption of a Business Integrity Code which continued with the achievement in 2007 of the Sodexo Statement of Business Integrity which enshrines Sodexo’s core beliefs and practices in this area of business ethics, so that every employee understands and shares the Group’s commitment to Business Integrity.
All this efforts had a reward on the last two years thanks to be named one of the 2009 and 2010 World’s Most Ethical Companies by the Ethisphere Institute, according to their commitment to ethical leadership, compliance practices and corporate social responsibility. The methodology for the WME ranking includes reviewing codes of ethics, litigation and regulatory infraction histories; evaluating the investment in innovation and sustainable business practices; looking at activities designed to improve corporate citizenship; studying nominations from senior executives, industry peers, suppliers and customers; and working with consumer action groups for feedback. As Sodexo CEO Michel Landel said, ?This award reflects the ongoing, daily efforts of Sodexo’s 380,000 employees around the world to ensure that we live up to our ethical principles and values: Service Spirit, Team Spirit and Spirit of Progress.?

d)

The possible challenges that the company may face in the future is the fierce price competition by other, less ethical competitors that can cut corners and provide a cheaper service at a lower cost in the short run. Another important aspect is the financial stability of the countries it operates in. For example de devaluation in Venezuela had an important impact on the operating margin.
Finally, a more important aspect that we hope will be a far-fetched idea is the purpose of the group to remain the same. By this it means that the company?s ideals should remain the same: to do a good job, motivate people and the profits will come by themselves. In conclusion, this is hopefully the main problem that the company will face in the future, keeping their core intact.