Registration Document

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Corporate Governance
Chairman’s Report on the Operating Procedures of the Board of Directors
and on Internal Control and Risk Management Procedures
• purchasing indicators, for example, the percentage
of purchases made from referenced suppliers,
reduction in the number of referenced products,
suppliers, and in the number of deliveries on
a site, etc.
Human Resources indicators, including:
• the employee engagement rate: the Group has
targeted a level comparable to that of firms ranked
as the best employers worldwide. As such, the
level of employee engagement increased from
48% in 2008 to 55% in 2010, as determined by
the most recent survey conducted in April 2010 of
112,000 employees in 60 countries. This compares
with an average decline of 1 percentage point over
the period among the 1,500 other firms in the
survey provider’s benchmark; in addition, 85%
of employees consider Sodexo a better employer
than its competitors;
• employee retention for all personnel, for site
managers, and for senior managers. This rate was
61.9% overall in Fiscal 2011 and 83.6% for site
managers;
• internal promotion, which is measured by the
number of employees promoted to site manager,
a middle management or a senior management
position; 2,630 staff members were promoted to
a managerial position passing from one category
to the next in Fiscal 2011;
• representation of women in senior management,
with a target for women in senior management
positions of 25% by 2015, versus 18% in 2009.
This proportion reached 20.1% in 2011.
Sustainable development: see section 3.2.4
These performance indicators are presented annually
to the Board of Directors and to the Group Executive
Committee in order to track progress.
3.6 Description of internal controls
relating to the preparation
of accounting and financial
disclosure
The Group Finance department is responsible for
ensuring the reliability of financial and accounting
information.
Sodexo Registration Document Fiscal 2011
P ◀ CONTENTS ▶
The production and analysis of financial information
is conducted through a collection of procedures put
in place at both operational sites and in the Group
and subsidiaries’ Finance Departments.
The subsidiaries’ Finance Departments produce
monthly a cumulative income statement since the
beginning of the fiscal year, a balance sheet, and a
statement of cash flows. They also produce quarterly
projections for the full year.
At February 28, the external auditors conduct a
limited review of the interim financial statements
for the most significant subsidiaries.
At the end of the fiscal year, the Chief Executives and
Chief Financial Officers of the business units certify
the reliability of their financial statements, prepared
in accordance with the IFRS standards adopted by
the European Union. The external auditors of the
main subsidiaries express a view on these financial
statements in connection with the mission referred
to them by the Group auditors. The Group Finance
Department ensures that the accounting treatments
applied by all subsidiaries are compliant with Group
rules. Financial statements are consolidated on a
monthly basis by the Group Finance Department.
The Group continues to reinforce its finance teams
in its subsidiaries as well as in the Group Finance
Department. This reinforcement includes the
strengthening of resources with technical expertise
in the area of financial reporting. As a result of these
efforts as well as the deployment of a new webbased
financial reporting system, the Group Finance
Department has brought forward the publication of
the annual results by 20 days over the last few years.
The ability to meet reporting deadlines, and the
quality and reliability of financial information, are
factors in assessing the performance of managers,
especially that of the Chief Executive Officers and
Chief Financial Officers of the Group’s subsidiaries.
Monthly operational and financial reporting
(comprising growth indicators for client retention,
sales development and revenue growth on existing
comparable sites) is discussed within each business
unit by its Chief Operating Officer and Executive
Committee and is then presented to the Group