hershey corporate social responsibility report 2011

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Corporate Social Responsibility Report

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Hershey bases their company off of their values: global and diverse team, operating with integrity, working together, determined to make a difference. Ultimately leading to "One Hershey" this was my focus to use their tag line to push their values throughout the CSR.

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Page 1: Hershey Corporate Social Responsibility Report 2011

Corporate Social Responsibility Report

Page 2: Hershey Corporate Social Responsibility Report 2011
Page 3: Hershey Corporate Social Responsibility Report 2011

THE HERSHEY COMPANY CORPORATE SOCIAL RESPONSIBILITY 3

Corporate Social Responsibility ReportThis report documents the Hershey Corporation and Foundation’s corporate social responsibility (CSR) efforts. It sets forth our CSR philosophy and describes the progress we’ve made in initiatives directed at improving our production methods, and our commitment to diversity, the sustainability of our business, and to the prosperity of the communities in which we live and work worldwide.

This report was prepared with the support of the Hershey’s Corporate Legal, Human Resources, Facilities Management, Investor Relations and Communications teams as an extension of our newly created Corporate Social Responsibility Statement.

What’s Inside

Employees

We strive to enhance the well-being of each of our employees as well as the communities in which we live and work.

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Environment

We commit to lowering our footprint on the planet and support sustainable economic development.

16

Community

By implementing of our philanthropic strategies, we support communities where we live, work, and do our business.

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Our Market

We take great pride in our brands and all the joy our products add to the lives of our consumers.

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Page 4: Hershey Corporate Social Responsibility Report 2011

Framework

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At Hershey we provide high-quality products while still conducting our business in a very socially responsible and environmentally sustainable manner.

Page 6: Hershey Corporate Social Responsibility Report 2011

”Our four category breakdowns encapsulate our professional profile and embrace the principles of the Hershey Corporation.”

ABOUT USOur Mission is to bring sweet moments of Hershey happiness to all. We are open to possibilities by embracing diversity, seeking new approaches and striving for continuous improvement.

We are growing together by sharing our various knowledge and unwrapping all our human potential in an environment of mutual respect and equality for all. We are making a difference by leading with integrity and determination to have the most positive impact in everything that we do for our consumers.

We together make up One Hershey, winning together while accepting individual responsibility for results. Building a sustainable and competitive advantaged business model, consumer driven insight. This report describes our performance on key economic, social, and environmental issues.

We understand that while achieving progress in social responsibility, there comes a required commitment and evaluation driven by continuous company improvement. Through this report and the development of CSR strategy, we are seeking to better understand our issues of concern to the company and stakeholders & to improve both performance & future reporting.

We engage in fair,ethical business dealings with responsible sourcing, through alignment to our customers and promise to our consumers.

We practice environmental stewardship through out our value chain, including product design, sourcing and efficient operations.

We foster a desirable place to work and to engage employees, who contribute to our continued success We work to positively impact society and our very own local communities.

We are engaged in an ongoing effort to develop goals and targets for each area, many of which are covered in this report. While we are proud of our accomplishments and the progress we have made, we understand that much remains to be done. For example, we must continue to pursue responsible sourcing while maintaining the integrity and high quality of our products.

We are confident our global team of employees will continue to fulfill our mission as we also find creative ways to drive improvements in environmental, social and economics.

Thank you for reading our report and providing your feedback. We are committed to continuous improvement and are eager to hear from our all of our stakeholders. In addition, we look forward to reporting to you regularly on our progress.

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THE HERSHEY COMPANY CORPORATE SOCIAL RESPONSIBILITY 7

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One Hershey

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Employees

Our Market

Envi

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Engage in fair and ethical business

Foster a desirable place to work

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Milton H

ershey’s legacy of commitment to consumers, communities

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Corporate Social Responsibilty

FIGURE 1 .1 | Corporate Social Responsibi l ity

Continuing Milton Hershey’s legacy of commitment to consumers, to communities and to children, ultimately leading us to “One Hershey”.

Page 8: Hershey Corporate Social Responsibility Report 2011

OUR HERITAGEFrom 1894, when he started the firm that would become The Hershey Company, Milton Hershey conducted his business according to the following principles; make and sell a high-quality product at a fair price, provide meaningful work, fair wages to employees, while giving back to communities where the company operated, be a good steward of the land and its resources a long standing commitment to community.

The first great milestone in the Hershey tradition of community service was Milton and Catherine Hershey’s establishment in 1909 of the Hershey Industrial School for orphans, known today as the Milton Hershey School. In 1918, Milton Hershey placed his entire fortune—$60 million in trust for the school. Today, under the administration of the Hershey Trust Company, the school provides a nurturing environment, quality education, housing and medical care.

“When I got my diploma from Milton S. Hershey he shook my hand very heartily and patted me on the back. He was just a great man, always my hero to tell the truth.”

— Bill Dearden

Page 9: Hershey Corporate Social Responsibility Report 2011

THE HERSHEY COMPANY CORPORATE SOCIAL RESPONSIBILITY 9

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85%

OF THE CHOCOLATE IN THE UNITED STATES IS

Hershey Chocolate

All at no cost, to more than 1,800 disadvantaged boys and girls. The Trust remains The Hershey Company’s largest stockholder, making these children and some 8,800 graduates of the school direct beneficiaries of our business success.

Milton Hershey invested heavily in the community, embarking on a massive building project in the town of Hershey during the height of the Great Depression Milton Hershey’s business practices extended to what most business leaders today recognize as the foundations of responsible and sustainable business.

Hershey has grown from a modest manufacturer in a small town in the farmlands of Pennsylvania. Today, Hershey is a global confectionery company with employees and facilities in communities in the United States and abroad and with customers across the globe. The principles that guided Milton Hershey in the 1900s still guide today.

The Hershey Company. Just as our founder did, we believe that conducting business responsibly with our employees, communities, customers and consumers is not only what is right; it is good for our entire business.

Milton S. Hershey with Milton Hershey School student, Robert Schaffer, 1923. The construction of buildings such as The Hotel Hershey and the Hershey Theatre, as well as the expansion of the Hershey park Entertainment Complex, helped put townspeople to work when jobs were scarce in the 1930s. Milton Hershey also believed that a community with a vibrant recreational, cultural & commercial life would attract and retain workers who were committed to The Hershey Company as well as the community of Hershey, Pennsylvania.

Page 10: Hershey Corporate Social Responsibility Report 2011

Our Market

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Bringing some sweet moments of Hershey happiness to all the world every day...

At Hershey, we make the chocolate and confectionery brands

that people love. Hershey’s market mission, is to bring some

sweet moments of happiness to all the world every day. That

statement summarizes what our company, our people, our

past and our future are all about. For over 100 years, we have

taken great pride in our brands and the joy our products add

to the lives of our consumers.

Page 12: Hershey Corporate Social Responsibility Report 2011

“We ensure safe processing of all our ingredients into wholesome, affordable products of only the highest quality.”

chocolateslicorice/sugar candy

boxes of chocolate

mints/gumsgrocery

FIGURE 2.1 | Primary Product Groups

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THE HERSHEY COMPANY CORPORATE SOCIAL RESPONSIBILITY 13

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MARKET PLACEAt Hershey, we make chocolate and confectionery brands people love. Hershey’s mission, Bringing sweet moments of Hershey happiness to the world every day, summarizes what our company and our people, our past and our future are all about. For more than 100 years, we have taken great pride in our brands and the joy our products add to the lives of our consumers.

The Hershey Company’s marketplace extends globally from far reaches of our supply chain to the consumers who enjoy our products. Hershey’s value chain does encompasses the company global supply chain, from the farmers who supply the raw materials for our ingredients to our customers who sell our products to the consumers who will enjoy our products. We are committed to dealing fairly and ethically with all consumers.

We work hard to ensure responsible sourcing of all our raw materials; the safe processing of ingredients to wholesome, affordable products of the highest quality; and the promotion of responsible enjoyment of our products.

Hershey’s brand reputation is one of our company’s greatest assets. We protect it with our commitment to producing the highest quality products possible and marketing them responsibly. We apply our uncompromising quality standards, which often exceed our industry and our regulatory standards. We do engage in and help lead the industry wide food marketing practices & support for various programs that promote responsible consumption of snacks or treats as part of a healthy lifestyle.

OUR GLOBAL OPERATIONS

We have a presence in 50 countries through our marketing, sales, distribution and manufacturing operations. Our marketing, which consists of our Hershey North America, Hershey International and the Global Marketing Group, is designed to:

Leverage our marketing and sales leadership in the United States and Canada. Focus on key strategic growth areas in global markets.

Hershey North America continues to build our chocolate and confectionery market position in the United States and Canada, leveraging scale of operations in order to capitalize on consumer and customer trends within each country. This includes developing and growing our business in our chocolate, sugar confectionery, refreshment, grocery and food service product lines.

Hershey International markets chocolate and confectionery products, beverages and grocery items worldwide and pursues profitable growth opportunities in key markets, primarily in Latin America and Asia. This organization is responsible for international subsidiaries in Mexico, Brazil, China and India that manufacture, import, market, sell or distribute chocolate, confectionery and beverage products.

Our Global Marketing Group is responsible for building global brands, developing transformational growth platforms, managing brand positioning and guiding portfolio strategy. This organization also analyzes market-specific insights and develops strategies and platform innovations for Hershey North America and Hershey International.

Our distribution network provides for the efficient shipment of our products from our manufacturing plants to distribution centers strategically located throughout the United States, Canada and Mexico. We use primary carriers to deliver our products from these distribution points to our customers.

We have a number of Hershey’s Chocolate World stores that provide consumers with the Hershey experience through interactive attractions and merchandise. Key store locations include Hershey, Pennsylvania; Times Square in New York City; The Magnificent Mile, Chicago; Niagara Falls, Canada; Shanghai, China; Singapore; and Dubai, UAE.

Hershey owns 12 manufacturing facilities in North America and we have international joint venture partnerships with Lotte Confectionery Co. Ltd. & Lotte China Investments Holding Co., Ltd., China.

Page 14: Hershey Corporate Social Responsibility Report 2011

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#1 #3

All Hershey products have a strong reputation for quality & affordability. In the 2010 EquiTrend® annual brand equity ranking, Hershey had three of the top 10 brands in the USA (out of 1,000 brands in 42 categories).

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OUR PROGRAMS

We have quality assurance programs in place where we operate, from all our 12 manufacturing facilities owned & operated by Hershey. We also require the rigorous standards our facilities of sixty third party manufacturing partners and all of our worldwide network of suppliers.

All must adhere to Hershey’s high standards of excellence, even where our stringent guidelines exceed local requirements.

We rely on our worldwide network of contractors, including manufacturers, to supplement all our manufacturing capacity. Every contractor working with Hershey having such capacities we must have the necessary assets and capabilities, to operate according to all our standards prescribed in our Code of Conduct. These contractors must pass a rigorous quality audit to be considered one of Hershey’s business partners.

Recently, we were informed global manufacturing partners, as a condition of future business, all their facilities must be working to obtain all certifications recognized by the GFSI.

In recent years, the whole global food industry has really experienced, high profile food safety issues that have prompted our concerns and also raised questions among consumers. The problems also resulted in heightened scrutiny by the government regulators and legislators. Work continuously to strengthen our quality assurance programs, in part by sharing information with others within the food industry and keeping up with industry best practices. We’re proud to say that as a result of all our stringent quality assurance.

We experienced no serious recalls in all of 2010. In recent years, global food industry experienced serious, profile food safety problems that have prompted concern and raised questions among consumers. The problems also resulted in high scrutiny by government regulators & legislators.

We work almost continuously to strengthen our quality assurance programs, in part by sharing information with others in the food industry and keeping up with industry best practices.

Page 16: Hershey Corporate Social Responsibility Report 2011

Environment

Page 17: Hershey Corporate Social Responsibility Report 2011

Environment

Developing innovative ways for reducing our own environmental impacts while yet still ensuring quality.

The Hershey Company fully embraces its role as stewards

of the environment. We are very committed to making and

delivering products in ways that are both environmentally

sustainable and socially responsible. We believe that it’s our

duty to take an active role in building a better world and it’s

good business as well.

Page 18: Hershey Corporate Social Responsibility Report 2011

The Hershey Company is one of the many founding partners of the World Wide Cocoa Foundation. We take pride in our extensive cocoa harvesting process.

OUR INGREDIENTS Safe supply of ingredients and package materials is one of our big concerns. All materials used to manufacture all Hershey products must come from our own Hershey Company approved suppliers and meet specifications.

We have a many supplier quality check, coordinated at the corporate level by regulatory compliance, procurement professionals along with our research and producer personnel.

We interview all prospective suppliers extensively, inspect all their facilities, and test ingredients and other supplied materials, as necessary, before approving them as vendors.

Once approved, vendors are reaudited on a risk based frequency determined by such criteria each supplier’s history and participation in recognized third party audit programs, attainment of all GFSI recognized certification, test results, specific regulatory risks associated with supplied material, country of origin. Other sourcing issues such as human rights and environmental impacts.

In addition to audits, we verify all our vendors’ to specifications through our targeted sampling and testing program conducted at the Hershey’s world class laboratories and at qualified external labs.

LOCAL SOURCINGDetermined with producing the best chocolate in all of America, company founder Milton S. Hershey located his company in the heart of Pennsylvania’s dairy land, with local farms.

Today, we continue to source all our raw materials, including dairy needs, locally whenever feasible. Nearly 75 percent of the overall tonnage of dairy products used at Hershey comes from within 100 miles of our manufacturing facilities. Due to the range of all our products, we source more than ten thousand different ingredients and packaging materials from suppliers through the world. We purchase commodities such as cocoa and sugar as processed ingredients. We utilize commodity futures markets to manage price risk.

1. HARVESTING PROCESS

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3. DRYING PROCESS2. FERMENTATION 4. MARKET SUPPLIERS

We purchase ingredients and packaging materials via a complex network of global suppliers. All of our ingredients & packaging undergo quality checks to ensure safety and freshness.

We focus on building sustainable and responsible supply chains that benefit environment, producers, growers, workers and other stakeholders. At the same time, we expect all participants in the supply chain to meet all our stringent criteria as a world class manufacturer and our customers’ and our consumers’ demands for safe, quality products and ethical operations.

OUR PACKAGING Our packaging is designed to deliver the high product quality that all our consumers expect. At the same time we’re committed to sustainable packages. Practices that reduce environmental impacts, use natural resources wisely & maximize recycling. We have a sustainable package strategy includes baseline goals.

Reducing the amount of packaging materials we use and using more sustainable materials, such as paper certified to all Forestry standards.

To those ends, we consider all environmental impacts during package design. We review all our package design, look, and functionality and materials sourcing, implement more sustainable alternatives wherever feasible. Eliminate waste through more effective, efficient warehousing and distribution. Encourage the recycling of secondary packaging materials by our suppliers and our consumers. Many of our new designs have reduced our overall weight per pallet by a total of 41 pounds or 51.5%.

In the United States, over 80 percent of all of our packaging material by weight is recyclable. Based on the U.S. recycling rates contained in the U.S. EPA’s 2008 MSW Report, we estimate that almost half of our total packaging material, or 48 percent, is recycled in the United States.

Page 20: Hershey Corporate Social Responsibility Report 2011

COCOA SUPPLIES

CONSERVATION Effort to conserve natural resources, Hershey is committed to using less energy, while reusing materials when able and disposing of waste in a very responsible manner. We encourage all our suppliers, customers & consumers to do the same.

“We are committed to using less energy while

reusing materials and disposing of our waste

in the most responsible manner.”

In 2009, we implemented similar design changes for club-store display pallets for two other popular products. We recognize that even small changes can make a big difference. Over the past four years, we have reduced the overall weight of our recyclable 22 oz.

Hershey’s Syrup bottles by 7.6 percent through a redesign of the bottle cap and removing material from the body of the bottle. The changes in the weight of a single product eliminated the need for 12.5 metric tons of polyethylene in one year alone.

Through inventory reduction initiatives, we have reduced the number of pallets we used in 2009 by approximately 17,000 units compared with 2008. By improving our loading practices and training staff, we reduced the in house damage in all our distribution centers by more than 11% & in-transit damage by 12% the previous year. We saved more than 23,000 corrugated cases for repacking.

On the sourcing side, we are working with our corrugate suppliers to ensure the raw materials used in all our packaging are as sustainable as they can be, through our the chain of custody sustainable forestry certification & other means.

FACILITIESThird-party energy audits within our own plants have helped us to identify opportunities for improvement in our conservation and efficiency. As a result of these audits, we made substantial investments in more efficient lighting; wastewater treatment plant biogas recovery; and improved compressed-air, boiler control and boiler systems at several plants.

To reduce energy usage, we instituted a lighting efficiency program at all plants and distribu tion centers. We reduced our energy consumption from lighting by more than 50 percent, which represents an annual reduction of more than 20,500 metric tons of carbon dioxide emissions.

Through energy savings initiatives outlined in the figure to the right, we reduced energy use in our U.S. manufacturing plants and distribution centers by 9.55 percent and realized annual savings of $3.9 million from years 2007 to 2009 on a total investment of approximately $9.6 million.

70% Of the World’s Cocoa comes from Africa

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Want to learn more environmental information see our CSR website at www.onehershey.com

CO2 EMISSIONS REDUCTION 2007–2009

15,743 CO2 TONSLIGHTING

3,863 CO2 TONSBIOGAS

907 CO2 TONSAIR

2,769 CO2 TONSBOILER

TOTAL= 23,282 CO2 TONS

Page 22: Hershey Corporate Social Responsibility Report 2011

Community

Page 23: Hershey Corporate Social Responsibility Report 2011

Community

Holding a positive attitude and having the desire to work toward a better community is what we believe in...

Milton Hershey not only transformed the whole business

of making chocolate; he established an enduring model of

responsible community stewardship. Still here at the Hershey

Company, we carry on his commitment to making a positive

difference in our communities.

Page 24: Hershey Corporate Social Responsibility Report 2011

COMMUNITY EFFORTSThe core of our community efforts is well being of children. We donate money and products to a variety of other worthy causes and non-profits in health and human services, education, civic and community programs, arts and culture and the environment. Hershey employees and retirees are active partners in our community efforts, volunteering their time and giving generously.

OUR CONTRIBUTIONSThe Hershey Company’s contributions in cash & products totaled more than $12 million, or about $1,000 per employee. This is consistent with the industry average for the food, beverage and the tobacco category.

We enable contribution of expertise to education, community development efforts and nonprofit organizations. This includes, providing technical support and expertise to organizations such as the World Cocoa Foundation & the United States Food and Drug Administration.

We provide all laboratory services and support for projects such as Ghana Fine Flavors for the Gates Foundation and we have developing and delivering education programs in the community such as the chemistry program for many high school seniors at Milton Hershey School and Junior Programs.

We have set a goal to track all of the contributions of employee expertise in the community and for global initiatives starting in 2011. The Hershey Co. facilitates our employee giving through alliances with two prominent charitable organizations, the United Way and Children’s Miracle Network.

Hershey has a long relationship with the United Way, whose mission is to meet the needs of local communities, promoting self-sufficiency all while bringing together families in the United States and abroad. In 2010, Hershey, employees and retirees contributed a combined $1.5 million to this organization, which in turn helped hundreds of agencies and organizations all over.

SUPPORT OUR TROOPSHershey is proud of our product donations to the U.S. military. Our donation program enables all our employees to send a case of Hershey products appropriate to the culture and climate where their loved ones who are serving overseas.

We have made a positive impact in communities for more than 100 years. Our marketplace makes all our investments possible. The company evolves & grows, we will continue to build on our heritage of making a difference in the communities where we all live and work.

Page 25: Hershey Corporate Social Responsibility Report 2011

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COMMUNITIES ABROADIn Mexico, we support establishment of a children’s burn center in 2003. As the first of its kind in the whole region, O.P.D. Hospital Civil de Guadalajara is located near our local El Salto facility. Severe burns among children in this region are very common due to practicing open fire cooking. The center provides critical, often life saving care to approximately 200 low income children each year.

Most children would not otherwise receive any such treatments. Our local center has been able to decrease the childhood mortality rate in this region. Hershey helps to fund the burn center’s ongoing operations. In Elsie Gaches Village next to the Muntinlupa community near our Hershey main Philippines office, many funds for the very therapeutic garden at an orphanage for children with special needs. Such gardens are of vital cultural importance for personal growth.

This garden is designed to provide a very healing & relaxing environment for therapy sessions. This garden was built in 2008, its maintenance and all the enhancement are ongoing commitments of Hershey Philippines employees. In 2009, Hershey Company funded Hershey’s Pure Water Refilling station, built for providing safe & pure drinking water to the residents of Elsie Gaches Village.

Milton Hershey not only transformed the business of making chocolate; but he also established an enduring model toward responsible community stewardship. We still carry on Milton’s commitment to making positive differences in the communities where we live our lives, go to work, and do our business.

TOTAL GIVING BACK

Company Monetary Donations: $4,045,251

Company Product Donations: $7,955,322

$

Page 26: Hershey Corporate Social Responsibility Report 2011

MIRACLE NETWORKSince 1989, we have been working with Children’s Miracle Network, a non-profit alliance of children’s hospitals dedicated to providing all state of the art care, life saving research & preventative education across North America. In 2009, Hershey and its employees collectively donated $173,625 to this organization, $123,625 came from employee fund raising efforts. Together, Hershey and employees have raised more than $3.2 million over 2 decades in support of the Children’s Miracle Network.

MILTON HERSHEY SCHOOLThe Milton Hershey School, was founded in 1909 by Milton and Catherine Hershey. Administered by Hershey Trust Company, enduring our legacy.

Currently enrolls more than 1,800 disadvantaged children from all backgrounds from kindergarten through 12th grade. Over the last several years, 75 percent of the students have come from homes at or below poverty level.

Over 40 percent of the students have a sibling at the school, & the student body has an even distribution of all male and female students. Every single student receives housing, food, clothing, medical services, recreational and education, all free of charge.Nearly 8,800 students have graduated from the school. Not only have their lives been changed; they have also gone on to change the lives of others. According to a 2009 impact assessment survey.

Over 98% are currently employed. In fact, all the respondents have created 17,000 jobs in their own businesses. They give nearly 1.5 times more to many charitable organizations than most of the average American households, and dedicate, on average, 23% more time to volunteering than the national average. Milton Hershey School is connected to Hershey through the Hershey Trust, engagement of employees as mentors.

FARMING COMMUNITIESWe have a special interest in helping the cocoa farming communities of West Africa, Asia and the Americas. In addition to efforts to improve farming practices and increase farm income, Hershey makes substantial donations of financial support, and time to protect and improve the health and well being of these communities.

We fund several programs that work to improve the quality of life for children in cocoa growing regions. We underwrite teacher training in Africa, expand access to education and opportunity for tens of thousands of farmers and their families. Hershey also funds Family Health International’s malaria efforts. These funds go to help thousands of people who otherwise would not be able to receive any type of treatments. Hershey believes in working as hard as possible to reach and impact the lives of as many people as possible.

“We are committed to the communities where Hershey is present in the United States, as well as all around the world.”

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400,000Kids Each Year

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FIGURE 4.1 | Milton Hershey School

Learn more about community programs? Get a hold of our brochures, or simply download it here.

Page 28: Hershey Corporate Social Responsibility Report 2011

Employees

Page 29: Hershey Corporate Social Responsibility Report 2011

We have the people, the work performance, and all the passion we need to succeed.

Our mission is to deliver an employee value proposition that

ignites passion, “unwraps” potential, builds capability, drives

performance, and wins in the marketplace. We recognize our

company will succeed and grow only if we attract and also

retain the highest quality workforce.

Page 30: Hershey Corporate Social Responsibility Report 2011

EMPLOYEE VOLUNTEERSHershey employees and retirees are active volunteers in their communities, where they support a variety of causes, organizations, & activities ranging from education, food banks, United Way partner agencies, scouting, sports and the environment. They participate in a variety of capacities: as fund raisers, board members, coaches, and mentors.

To encourage and recognize volunteers, the Dollars for Doers program began in 2009. We were able to donate $250 to any eligible charity designated by an employee who volunteers.

To increase participation in this program, we decreased the number of hours that we were requiring to qualify for the donation from 100in 2009 to 50in 2010.

We also encourage our employees to engage with the community through participation in leadership positions in organizations that promote social and economic development. For example, employees hold leadership positions while on the Hershey Community Task Force, which is part of the whole Downtown Hershey Development Team and local chapters of United Way.

EMPLOYEE ENGAGEMENTHershey has more than 13,000 full and part time employees worldwide, including a broad range of personal and cultural backgrounds, and values. Maintaining our employees engagement with the company starts with attractive compensation and competitive benefits, we call this the Whole Total Rewards. True engagement, however, like true job satisfaction, is based on more than just the compensation and benefits.

YOUR THOUGHTS MATTERHershey conducts employee surveys as a way to measure engagement and prioritize & implement initiatives that will improve performance and increase employee satisfaction.

We conducted a survey of our salaried employees to gauge how the company was performing as an employer. Results showed employees wanted a stronger sense of Hershey’s strategic vision. In response to this, we sought input from and also throughout the entire organization.

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Employees

Positive Actions

Employee Satisfaction

FIGURE 5.1 | Employee Surveys

At Hershey, we see a world of many opportunities. Each year, Hershey touches over 250 million consumers & constantly are looking for innovative ways to deliver on future needs.

“79% of people agreed our actions have supported their communities, environment, and have a positive impact on their lives.”

Page 32: Hershey Corporate Social Responsibility Report 2011

HERSHEY GLOBAL WORKFORCE

Volunteer much? Want to give back too? You can log hours with our Dollars for Doers App, check it out.

0

4000

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12000

Part Time

Salaried

Hourly

Total

9,097United States

4,574International

13,671Total

1,458

121

1,579

2,827

1,588

4,415

4,812

2,865

7,677

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THE THREE P’SOur mission is to deliver an employee value proposition that ignites passion, “unwraps” potential, builds capability, performance, and wins in the over the marketplace.

At Hershey, we recognize we will succeed and grow only if we attract and retain the highest quality workforce talented, engaged employees dedicated to connecting with consumers and meeting our company’s mission and values. We are committed to treating our employees well. We strive to ensure we reward employees with more than a paycheck. From providing a welcoming environment and a competitive compensation benefit program to development opportunities.

A commitment to employee safety on the job is very fundamental to our values. One of our goals is to consistently achieves the best in class safety performance. We also believe that enhancing employee safety must be an industry imperative, and best practices should be shared.

OUR MANAGEMENTSenior management developed a new strategic plan and mission for The Hershey Company, which was widely communicated. Employees were also invited to discuss action planning in response to survey results. All these surveys are very important to us.

A follow up survey in late 2008 and the early 2009 showed that the new strategic plan and involvement of all our employees in business plans improved collaboration, alignment and engagement, we made improvements.

The rollout of the strategic plan has translated to measurable improvements in our performance in the marketplace. The 2008 survey measured employee satisfaction with company’s CSR policy and performance, providing a baseline for future indicators of employee engagement in this area.

“As a hershey employee I know I will be taken

care of in all aspects of the job, hershey truly

cares about us.”

Since having conducted our review of the 2008 survey results, we have made CSR a strategic priority, formed cross function CSR leadership team & directly engaged employees through various company programs to foster progress on all our key CSR issues.

Assessing our overall employee survey process on an ongoing basis to continue to ensure that we are producing valuable and actionable insights.