LONDON —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
The program, called Speak Up, has been in place for several years at the company’s Americas division, based in Charlotte, N.C., but not at Compass’ international groups, which last year faced a congressional subcommittee investigation as well as an internal inquiry into accusations that senior executives at Compass-owned Eurest Support Services had rigged bids for U.N. contracts. Following those investigations, several of the executives were fired and lawsuits involving competitors ES-KO International and Supreme Foodservice were settled for approximately $75 million. —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
“Speak Up [was developed] for our people to confidentially raise any concerns over actions and behaviors they feel may be improper, unsafe, unethical or even illegal,” said Chris King, spokesman for London-based Compass. —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
In the United States, most businesses have similar kinds of compliance programs in place, and the number is growing, particularly since the passage of the Sarbanes-Oxley Act of 2002, which requires public companies to rework their accounting practices and internal controls. —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
Other foodservice companies with such programs include Sodexho, Delaware North and Aramark. Similarly, McDonald’s, CBRL Group, Applebee’s and Yum! Brands, parent of quick-service brands KFC, Taco Bell and Pizza Hut, make available to employees anonymous, 24-hour, business abuse hotlines and a variety of online management training programs. —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
“There are more of these plans in place today because of the emphasis that came from scandals in business, like Enron and WorldCom,” said Bonnie Green, vice president of compliance and general counsel for Gaithersburg, Md.-based Sodexho USA. “There is so much more scrutiny, companies have to behave more responsibly. As the environment changes, so must we.” —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
Green said Sodexho has two different compliance programs: One is a whistle-blower policy that handles all of the company’s internal matters and audit functions, and the other polices all legal and ethical problems. —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
Compliance programs are gaining in popularity because companies, first and foremost, are interested in protecting their assets and reputations, said attorney Beth Schroeder of Los Angeles-based Silver & Freedman, a law firm specializing in employment and labor issues. —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
“There is an increasing awareness of these kinds of programs that have seen incremental growth over the last five years,” she said. “A lot of companies are nervous; they know they’d better pay attention to the issues.” —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
King of Compass noted, however, that even if the new whistle-blowing program had been in place overseas at the time of the scandal, it would not have been effective in stopping the U.N. bid rigging from happening. —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
“In terms of the U.N., the system was not in place within the business where the issues started,” he said. “Indeed, I suspect the Speak Up program wouldn’t have been effective in that particular case as the issues were limited to a small number of people at a senior level who no longer work for the company. However, other measures have been introduced that would have helped prevent such issues [from occurring]. But Speak Up has its place as part of a package of measures being implemented by the senior management team to protect our shareholders, our people and our suppliers in all aspects of governance.” —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
In addition to rolling out Speak Up, King said Compass has established a corporate-responsibility committee, a subcommittee of its board of directors, that will “look at all aspects of business conduct, safety, health and environmental management, and responsible business practices.” —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
Furthermore, “the board has conducted a review of the effectiveness of the company’s internal controls and has made a number of changes, including the development of a Group Approvals Manual, to make them even more robust.” —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
He also noted the establishment in each of Compass’ major divisions “a country communications process, which is designed to encourage managing directors and their teams to better understand the political, economic and social environments in which they operate.” —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
This process will identify geopolitical risk earlier and give the executive committee the opportunity to manage the process more effectively,” he said. “It will, in addition, give clarity to the application of our ethical policies from country to country.” —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
At sports and hospitality foodservice management concern Delaware North Cos., Bryan Keller, vice president and general counsel, said a compliance program “is a way of ensuring that every attempt is made to conduct business lawfully and provide employees with a safe and good place to work that is designed to comply with all laws, policies and procedures. Our compliance program is really designed to be proactive and to try and educate people and provide avenues for them to speak in a protected way so we can make sure we don’t have occurrences of unlawful activity.” —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
Keller noted that Buffalo, N.Y.-based Delaware North circulates a corporate ethics guide to all managers. He said it offers employees the company’s code of conduct and tells them what is expected of them and what caveats are in place. —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
“We expect that everyone obeys all laws and government regulations and accounting procedures, and that no gifts from vendors in excess of $100 are accepted,” he said. “That way, there are no conflicts of interest. Those are things that would compromise employees or the business.” —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
At Oak Brook, Ill.-based McDonald’s, business integrity is taught on a regular basis through coursework and online training, said spokeswoman Lisa Howard. “A variety of topics are included, and it is mandatory that all employees complete it,” she said. “If you don’t [finish it], you get repeated reminders through e-mails and phone call follow-ups.” —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
Though most companies do not offer remuneration to whistle-blowers, there can be financial gain, said Schroeder of Silver & Freedman. —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.
“There are some rewards,” she said. “They’re kind of like bounty hunter rewards, and there are some IRS provisions, too. But it is my experience that that’s not why employees use the hotlines. They call in because in their minds—rightly or wrongly—they actually feel there is a problem.” —In a move observers said was an effort to offset the residue of a United Nations contract scandal, foodservice giant Compass Group PLC took a chapter from its U.S. division’s operations playbook and in February enacted incentives for whistle-blowers in its overseas businesses.