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NAACP AND FLAGSTAR REACH $1 BILLION HISTORIC ACCORD TO EXPAND OPPORTUNITIES FOR MINORITIES

 BALTIMORE, July 1 /PRNewswire/ -- Flagstar Companies, Inc., and the National Association for the Advancement of Colored People (NAACP) today signed a far-reaching and comprehensive Fair Share Agreement to provide greater opportunities for minorities at the company's restaurant and food service operations.
 The agreement, which covers 120,000 Flagstar employees at Denny's, Hardee's, Quincy's Family Steakhouse, El Pollo Loco restaurants and the Canteen contract food, vending and recreation services company, includes:
 -- A minority recruitment and training program designed to increase minority representation in management to 12 percent and in non- management to 20 percent.
 -- Greater franchise opportunities for minorities.
 -- A Minority Procurement Program with a goal of purchasing 12 percent of total goods and services, including food, manufactured goods, office supplies and services, construction and contracting from minority-owned firms.
 -- A pledge to increase the use of minority firms for professional services such as banking, insurance, accounting, advertising and legal counsel.
 -- An ongoing random testing program, coordinated by the NAACP, of nearly 2,000 Flagstar company restaurants designed to ensure that all customers are treated fairly and to quickly identify any discrimination and take corrective action.
 In addition, Flagstar will appoint at least one minority member to its board of directors.
 The value of the Fair Share Agreement is estimated to be $1.01 billion over the next seven years in direct and indirect benefits.
 Dr. Benjamin F. Chavis Jr., executive director of the NAACP, commenting on the agreement, said: "I am exceedingly pleased that after several months of negotiations, the NAACP and Flagstar, along with Richardson Sports, have today signed a number of historic agreements, unprecedented in scope and magnitude. This billion dollar package will set a standard for future relations between the Civil Rights Movement and Corporate America and will enhance the struggle of African Americans and other racial minorities for economic empowerment and racial justice."
 "This historic agreement -- one that will be a model for other companies -- is tangible evidence of Flagstar's commitment to treating customers and employees fairly regardless of the color of their skin or their racial heritage," said Jerome J. Richardson, Flagstar chairman and chief executive officer. "The partnership we began working on 18 months ago and have signed today with the NAACP is a loud and clear signal that Flagstar does not tolerate discrimination, that all people are welcome in our restaurants and that we are building a culturally diverse company."
 The Fair Share Agreement is based on three fundamental principles: equal opportunity for all; non-discrimination; and providing a fair share of economic opportunities with Flagstar to minority businesses, individuals and institutions.
 New Opportunities in Management and Non-Management Positions
 As part of its effort to increase minorities in management and non- management positions, Flagstar will start a series of minority recruitment and training programs. These include a Minority Trainee Program designed to identify qualified minority employees and place them in the company's management training and development programs. A Minority Recruitment Program will work through community organizations and educational institutions to identify potential new employees.
 Flagstar will also develop a Recruitment Action Plan that works through the NAACP, Minority Business Enterprise Associations, national civil rights organizations and state employment services to identify new employees.
 Minority-Owned Franchises to Expand
 As part of the Fair Share Agreement, Flagstar has set a goal of 53 minority-owned restaurants by the end of 1997. Flagstar will identify specific opportunities for minority franchises in minority and non- minority neighborhoods and reduce potential barriers for minorities opening new franchised restaurants.
 "We are absolutely committed to giving minorities the opportunity to own their own businesses," said Richardson, "because I personally believe it is the most meaningful vehicle to economic independence."
 "This is a red-letter day for the NAACP," stated Dr. William F. Gibson, chairman of the NAACP's board of directors. "These momentous signings with Flagstar and Richardson Sports represent the largest fair share agreement for African-American empowerment that has ever been signed in a single day. With agreements worth over a billion dollars, I am pleased that the NAACP has entered into this most significant arrangement."
 Aggressive Minority Procurement Program
 To encourage purchasing from minority firms, Flagstar will develop a directory of minority suppliers of food, manufactured goods, office supplies and services, contractors and construction firms. These suppliers will be used throughout the corporation. Franchised restaurant owners will also be encouraged to purchase from minority firms.
 The Minority Procurement Program is designed to reduce entry barriers to Flagstar purchasing programs and assist minority companies in qualifying as eligible vendors. Flagstar will also establish a telephone hotline for minority companies seeking to quality for the directory.
 Minority Professional Services to Increase
 Working with the NAACP, Flagstar will seek to do business with minority banks, financial, accounting, insurance and legal professionals. Minority firms will be invited to bid on a number of professional services.
 Flagstar has also agreed to establish a banking relationship with a minority-owned bank in its headquarters state, South Carolina.
 In addition, Flagstar has agreed to spend 10 percent of its radio and print advertising budget with minority-owned publications and radio stations and minority producers and managers in the television industry. The company will also increase its use of minority-owned advertising agencies.
 Random Testing Program Ensures Fairness
 In a coordinated effort with the NAACP, Flagstar will randomly visit its nearly 2,000 restaurants to ensure that all customers are being treated fairly.
 The program will use an objective third-party survey firm to evaluate whether restaurants are complying with company policies and procedures. The survey firm will provide regular reports to the NAACP and Flagstar and report critical situations immediately.
 The NAACP, founded in 1909 and based in Baltimore, is the nation's oldest and most respected civil rights organization.
 Flagstar Companies, Inc., based in Spartanburg, S.C., was formerly known as TW Holdings, Inc., and has 1992 revenues of $3.7 billion. It owns and operates Denny's, Hardee's, Quincy's Family Steakhouse and El Pollo Loco restaurants and provides contract food, vending and recreation services through its Canteen Company.
 -0- 7/1/93
 /CONTACT: Dr. Benjamin F. Chavis Jr., executive director, 410-486-9100, Dr. William F. Gibson, chairman of the board, 803-233-7355, or Don Rojas, director of communications, 410-486-9100, all of the NAACP; or Jerome J. Richardson, chief executive officer, 803-597-8642, Coleman Sullivan, vice president-communications, 803-597-8642, or Karen Randall, director, public relations, 803-597-8440, all of Flagstar/


CO: Flagstar Companies, Inc.; NAACP ST: Maryland IN: SU:

MH-TW -- DC022 -- 7715 07/01/93 12:09 EDT
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Date:Jul 1, 1993
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