History
The founder of the Hershey’s company is Milton Hershey, who was born in September 13, 1857. When Milton turned 18, he desired to start his first candy business and opened a little store in Pennsylvania. This store didn’t do very well and was closed after 6 months.
Milton Hershey decided to move to Denver/Colorado, and he worked at a manufacture company where he learned how to make caramel. After learning to make caramel, he moved back to his hometown Pennsylvania and launched his Lancaster Caramel Company in 1886. Then in 1893, Milton decided to go to the Chicago International Exposition. In Chicago, he bought machines that can make German chocolate and started to produce chocolate-coated caramels.
Officially, Milton Hershey started the Hershey’s company. The company started producing chocolate caramels, breakfast cocoa, sweet chocolate and baking chocolate. After awhile, he decided to focus on chocolate making rather than caramel business; thus, he sold his caramel business and conducted his chocolate business (hershey’scompany.com).
Milton Hershey decided to move to Denver/Colorado, and he worked at a manufacture company where he learned how to make caramel. After learning to make caramel, he moved back to his hometown Pennsylvania and launched his Lancaster Caramel Company in 1886. Then in 1893, Milton decided to go to the Chicago International Exposition. In Chicago, he bought machines that can make German chocolate and started to produce chocolate-coated caramels.
Officially, Milton Hershey started the Hershey’s company. The company started producing chocolate caramels, breakfast cocoa, sweet chocolate and baking chocolate. After awhile, he decided to focus on chocolate making rather than caramel business; thus, he sold his caramel business and conducted his chocolate business (hershey’scompany.com).
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"For more than 100 years, The Hershey Company has been a leader in making a positive difference in the communities where its employees live, work and do business." |
Current Products· Almond Joy and Mounds candy bars,
· Cadbury Creme Eggs candy, · Hershey's Cookies 'n' Creme candy bar, · Hershey's milk chocolate and milk chocolate with almonds bars, · Hershey's Nuggets chocolates, · Hershey's Kisses and Hershey's Hugs chocolates, · Kit Kat wafer bar, · Reese's crunchy cookie cups, · Reese's NutRageous candy bar, · Reese's Peanut Butter Cups, · Sweet Escapes candy bars, · TasteTations candy, · Twizzlers candy, · Whoppers malted milk balls, · York Peppermint Patties. |
Geographical Locations of ProductsHershey’s chocolate is basically the largest factory in North America. It is an international company because it sells products in 50 different countries including Dubai, Shangai, Singapore. The products are under different brand names like Reese’s and Hershey’s Kisses.
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Culture of the CompanyOn Hershey’s website, there is a two paragraphs “Culture” part where it is mentioned that the company’s revenue is $5 billion, and also it employs over 13,000 workers around the world.
Reading about the culture part, I can see that “integrity” is the key value for the Hershey’s company since the very first day. The company tries to satisfy their employees by providing them different opportunities so that they can create and manufacture products that have high quality for the consumers and the environment. |
Stage of Lawrence Kohlberg's Stages of Ethical ReasoningAccording to Lawrence Kohlberg, there are 3 levels and 6 stages of ethical reasoning. The Hershey’s company is in 3rd level, post conventional, and 6th stage, universal ethical principal orientation. Post conventional is basically the highest level of ethical reasoning and at this stage the company leaders determine principles that are for consistency and universality (Ghillyer).
Hershey Company committed to certifying 100 percent of their cocoa by 2020, is a step in the right direction (Child Labor Coalition, 2012). |
Code of EthicsHershey’s has a code of ethics which can be found on its website easily. The code of ethics document is 44 pages long. It looks pretty catchy with the decorations and chocolate pictures. There are quotes in some pages and also questions along with the answers that are about the ethical situations. Besides these, commitment to the marketplace, employees, costumers, stockholders, their responsibilities, and laws are explained in details too.
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Conflict of Interest “Organizational conflict of interest refers to conflicts that arise because of conflicting incentives or contractors due to their own activities or activities of related entities (M.A. Thomas).”
While reading their corporate governance guidelines of Hershey’s company I can see that it is not mentioned. While reading its Facebook page I can only be informed that any comments that has conflict of interest will be removed from their page, which I think they are strict about it and since it is one of the largest companies in USA, I don’t think they have sold any product that has a potential to be harmful to their either costumers or environment. |
Triple Bottom Line (TBL)“Triple Bottom Line (TBL) reporting is a method used in business accounting to further expand stakeholders knowledge of the company (Ejoor Osaretin Kingsley)." Reading different articles about Hershey’s, it actually had to deal with some issues about its sustainability as the company failed to prove its responsible sourcing. After getting complaints about the displeasure from critics, Hershey’s factory is now using most recent CSR report which we can find on its website and is going in to the right direction. Hershey’s company updates the information every year. However, its 2014 CSR report hasn't been published yet.
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Corporate Social ResponsibilityReading the 10 pages CSR of Hershey’s company, I can categorize it as Altruistic CSR which means the company fulfills the organization’s responsibilities by helping the public welfare regardless of whether or not it benefits the business itself (Ghillyer). For instance, Hershey’s donated $9 million to charities only in 2012. This includes funding the children’s safety center, providing free weekend to wounded veterans at Hersheypark, contributing to YMCA’s capital campaign, and raising funds for children hospitals. Hershey’s does donations not only in America, but also in Africa and other countries in total $200,000. Peanut Butter Project(PBP) is one of them, which will provide vitamin-enriched nutritional packets to impoverished children in rural Ghana (hershey'scompany.com).
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Evolution of the CompanyHershey’s company didn’t find its way to 3 levels from the beginning unfortunately. The company had issues and struggles and it was spread worldwide in 2010. It took a big part at the news and newspapers that Hershey’s suppliers were employing child labor in west Africa.
It was found by groups and those groups even prepared a report called “Time to Raise the Bar: The Real Corporate Social Responsibility Report for the Hershey Company.” According to the “Hershey’s Child Labor & Facts” article this report came out when Hershey’s first CSR report came out. After this issues were spread, Hershey’s team took the control, and in 2012, published their CSR report which shows us that Hershey’s company have finally addressed their social and environmental responsibilities properly and legally. |
Human Resources
Human resources is the department that is responsible from the relationship between the employees and the mangers in the company. It fits in to the 3 levels (The three levels are ethical behavior, CSR, Corporate governance) because HR has to make sure the ethical behavior is the fundamental factor at the company.
HR is one of the main focuses for Hershey's company and has a separate page that informs people about the interns, jobs (guest service, food and beverage, entertainment complex etc.) and volunteers (hersheyjobs.com). The page also explains the locations for the jobs, descriptions and the accepted majors for those positions.
HR is one of the main focuses for Hershey's company and has a separate page that informs people about the interns, jobs (guest service, food and beverage, entertainment complex etc.) and volunteers (hersheyjobs.com). The page also explains the locations for the jobs, descriptions and the accepted majors for those positions.
3 Level Discussion
Considering the 3 level, it looks like Hershey's focuses more on the manufacturing part rather than research& development or finance departments as it is a food company and the quality of the product is what comes first. Hershey’s company tries to manufacture products that are environmentally sustainable and socially responsible. While manufacturing, it also focuses on decreasing the impact for the environment and has the highest quality.
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Corporate Governance
Hershey’s corporate governance is pretty detailed explained. When we consider the effectiveness of the company, it seems like the board of directors and senior executives are working together as a whole to increase the effectiveness. The directors annually evaluate the committee and the board of directors’ performances and the governance committee rates the performance results. Another factor that makes the Hershey’s company have effective governance is the board of directors meet the future leaders because they believe not improving the future leaders, they would eventually meet the failure. Looking at the 22 questions, Hershey's board has 11 members which seems like a right size as it has to consist of 8-15 members. Performances are annually evaluated by the Governance committee, then are presented to the board committee. If there is something that needs to be changed or not appropriate, Governance committee suggests the solutions to board committee.
it doesn't seem like the company has a possible danger as long as they don't fail to display their CSR report every year. |