The Hershey Company was founded in 1894 by Milton Hershey. His original intent was to produce sweet chocolate for a coating for his caramel company but by 1895 Hershey was focusing more on the chocolate aspect of his company and ended up working solely with chocolates. He found considerable success becoming the first to mass produce chocolate so that it was inexpensive and no longer a novelty for the wealthy and in 1899 he came up with a successful formula for milk chocolate and became the first man in the world to produce it. Hershey only continued to grow and was continually trying their hand at new products, many of which we still love today. They became an integral part of the WWI army rations production and by the end of 1945, 24,000 “Field Ration D” bars were being manufactured a week. Hershey has made many key acquisitions along the way including the H.B. Reese Candy Company, maker of the original Reese’s cups.
Hershey did its first national advertising campaign in 1968 and believes that the products still speak for themselves better than any ad campaign. They also partnered with the producers of E.T. for product placement of Reese’s Pieces as E.T.’s candy of choice. Sales subsequently soared. Currently, Hershey is a publically traded company, the leading North American manufacturer of quality chocolate and non-chocolate confectionery and chocolate-related grocery products, they make over $5 billion in annual sales.
Not only does Hershey prioritize the value and taste of its products, they are taking many measures to ensure the company is helping the community and keeping the highest standards of business. Hershey has taken many initiatives in order to go above and beyond in the area of corporate social responsibility. They even call it the foundation of their company. The corporate values call for employees to be “open to possibilities” by thinking globally, embracing change, and having the courage to innovate; to “grow together” by building relationships, developing oneself and helping others; to “make a difference” by acting with integrity, driving sustainability and committing to engagement; and to align goals, promote collaboration and embrace accountability under “One Hershey.”
Using these values as a basis for corporate social responsibility, The Hershey Company focuses their efforts in the areas of a sustainable supply chain, environmental stewardship, corporate philanthropy, community relations and employee engagement. Hershey’s is highly involved in the cocoa industry and is a co-founder and member of the World Cocoa Foundation. They support and fund farmer education, as well as basic needs such as teacher training and malaria prevention and are a member of the West Africa Cocoa Livelihoods program.
Hershey’s commitment to environmental stewardship is both local and global. They take great measures to ensure that farmers are educated in the more environmentally friendly way to farm the cocoa. Locally, they strive to conserve resources, reduce emissions and waste as well as recycling anything possible. They focus on finding the best ways to reduce packaging material so there will be less waste (they have reduced 4.5 million pounds to date) and they have their own corporate recycling center and recycle 80 million pounds a year.
As for corporate philanthropy, The Hershey Company is a key partner with both The United Way and The Children’s Miracle Network along with partnering with local, national and international programs to better their respective communities. They give in-kind and financial donations to over 1,400 organizations annually and specifically focus on “Kids and Kids at Risk.”
Hershey’s is deeply committed to helping and bettering the communities in which they find themselves. A few of their outreach programs include the “Hershey’s Tour de Pink,” which is a 225 mile bike tour fundraiser which supports the Young Survivor Coalition, and the Hershey’s Track and Field Games which is a North American youth program that sees about 400,000 kids annually and encourages them to be involved in physical fitness through sports. The Hershey Company’ has supported the program for 32 years. One of the company’s biggest endeavors has been the school Milton Hershey created in 1909 for orphaned boys and the school is still functioning today. The Milton Hershey School operates as a private for children who have limited resources and social needs.
Lastly, the company promotes CSR through its employees. They have implemented a number of affinity groups for almost every race and group. They encourage their employees to volunteer and get involved in the community and remain active through the facilities that the company provides. They are willing to lend financial support in adoption and strive to help employees as much as possible.
A SWOT analysis for The Hershey Company might include the following:
Strengths
• Largest chocolate producer in North America
• Variety and popularity of products
• Sell to over 90 countries, world-wide name recognition
• Strong relationship with suppliers and employees
• Founded over 100 years ago
Weaknesses
• High cost to keep products at correct temperatures
• May rely too heavily on certain products
Opportunities
• Produce new products
• Become more healthy
• Branch into more countries
• Understand and meet stakeholder needs globally
• Achieve greater sustainability for cocoa farms
Threats
• Constant American dieting
• Newer, more innovative products from competitors
• Falling into the background of the candy world
• Increased diabetes reduces market
