DBE 5018BUSINESS ETHICS

ASSIGNMENTDP-14

Topic: Ethics in foodindustry

Group Member Student ID LawKuan Joe

1121117322

Chong Hui

LongLow Lap HongToh Chew See 1121118272

Introduction

The Hershey Company, known until April 2005 as the Hershey Foods Corporation and commonly called Hershey's, is the largest chocolate manufacturer in North America. Its headquarters are in Hershey, Pennsylvania, which is also home to Hershey's Chocolate World. It was founded by Milton S. Hershey in 1894 as theHershey Chocolate Company, a subsidiary of his Lancaster Caramel Company. Hershey's products are sold in about sixty countries worldwide. In addition, Hershey is a member of the World Cocoa Foundation.Hershey is one of the oldest chocolate companies in the United States, and an American icon for its chocolate bar. It is one of a group of companies established by Milton Hershey. Other companies include Hershey Trust Company, and Hershey Entertainment and Resorts Company, which runs Hershey park, a chocolate-themed amusement park, the Hershey Bears minor professional hockey team, Hershey park Stadium and the Giant Center.

History of Hershey Company

After completing an apprenticeship to a confectioner in 1873, Milton Hershey founded a candy shop Suburb

in Philadelphia, which failed six years later. After trying unsuccessfully to manufacture candy in New York, Hershey returned to Pennsylvania, where he founded the Lancaster Caramel Company, whose use of fresh milk incaramels proved successful. In 1900, after seeing chocolate making machines for the first time, Hershey sold his caramel company for $1,000,000 (equal to $28,348,000 today) and began to concentrate on chocolate manufacturing.

In 1923,a former Hershey employee named H. B. Reese decided to start his own candy company out of the basement of his home. He made several different kinds of candy, but it wasn’t until five years later that he hit upon his greatest idea: a confection of peanut butter covered by milk chocolate (purchased , incidentally , from the Hershey Chocolate Company). During World War II,he discontinued his other product lines and concentrated on producing only REESE’S peanut butter cups.

Despite its dependence on only single product, Reese’s company prospered, and in 1963 the H.B. Reese Candy company was purchased by the Hershey Chocolate Corporation. Since then, the REESE’s product line has grown to include REESE’S PIECES candies, the NUTRAGEOUS candy bar and REESESTICKS.

Shortly before World War II, Bruce Murrie , son of long-term president of Hershey's, William F.R. Murrie , strucka deal with Forrest Mars to create a hard sugar-coated chocolate that would be called M&M's (for Mars and Murrie). Murrie had 20% interest in the confection. The new confection would use Hershey chocolate during the rationing era during World War II. In 1948 Mars bought out Murrie's interest and would become one of Hershey's primary competitors.

The U.S Army’s requirements were quite specific. For troops engaged in global war, they needed a ration bar

that weighted about ounces, would not melt at high temperatures, was high in food energy value, and did not taste so good that soldiers would be tempted to eat it except in an emergency. This last objective in particularwas certainly a new one for the Hershey Chocolate Corporation. Nevertheless, its chocolate technologies came up with something that passed all tests.

Named “Field Ration D”, it was so successful that by the end of 1945, approximately 24 million bars were being produced every week. More successful still was HERSHEY’S Tropical Chocolate Bar, a heat resistant bar with an improved flavour developed in 1943. In 1971, this bar even went to the moon with Apollo 15.

In 2007, the Chocolate Manufacturers Association in the United States, whose members include Hershey, Nestlé, and Archer Daniels Midland, lobbied the Food and Drug Administration to change the legal definition of chocolate to let them substitute partially hydrogenated vegetable oils for cocoa butter in addition to using artificial sweeteners and milk substitutes. Currently, the Food and Drug Administration does not allow a productto be called "chocolate" if the product contains any of these ingredients. In December 2007, Philadelphia city councilman Juan Ramoscalled for Hershey's to stop marketing "Ice Breakers Pacs", a kind of mint, due to the resemblance of its packaging to a kind that was used for illegal street drugs. In September 2008, MSNBC reported that several Hershey chocolate products were reformulated to replace cocoa butter with vegetable oil as an emulsifier. According to the company, this change was made to reduce the costs of producing the products instead of raising their prices ordecreasing the sizes. Some consumers complained that the taste was different, but the company stated that in the company-sponsored blind taste tests, approximately half of consumers preferred the new versions. As the new versions no longer met the Food and Drug Administration's

official definition of "milk chocolate", the changed items were relabed from stating they were "milk chocolate" and "made with chocolate" to "chocolate candy"and "chocolaty."

Vision of Hershey Food Corporation

Continuing Milton Hershey’s legacy of commitment to consumers, community and children, we provide high-quality HERSHEY’S products while conducting our business in a socially responsible and environmentally sustainable manner.

Ethics behaviour of Hershey Corporation in different area

1. Environment- Minimize impact while meeting functional requirements

-Sustainable Product Design -Sustainable Sourcing -Efficient Business Operations

2. Marketplace- Engage in fair and ethical business dealings

- Integrity of supply - Consumer Well-Being - Alignment with customers

3. Community- Positively impact society and local communities where we live and work - Corporate Philanthropy - Contribution of Expertise - Employee Giving &Volunteerism

4. Workplace- Foster a desirable place to work - Safety & Wellness at work - Openness & Inclusiveness - Employee Value Proposition

Milton Hershey School

Unable to have children of his own, Milton S. Hershey founded the Milton Hershey School in 1909 for orphans. In1918, Milton S. Hershey and his wife, Catherine Hershey, donated all of their considerable wealth, of around 60 million dollars, to the boarding school upon Catherine

Hershey's death. The Hershey Trust Company is now the largest shareholder and beneficiary to the School. Beforehis death, Milton Hershey ensured the school would live on by donating 30% of all future Hershey profits to the school. Due to this generous donation by America's largest chocolate company, MHS now has over 7 billion dollars in assets, making it one of the richest schools in the world. Today, the Milton Hershey School provides free education, health care, counseling and a friendly home to 2000 orphans in financial need. The school's programs include sports, arts, religious studies, sciences, math, language and many other subjects. School colours are gold and brown. Students must wear a uniform to class provided to them by the School to encourage equality. Their admissions is primarily based on age and financial need for the orphans. The school also provides "House Parents", which are hired couples, paid to take care of and nurture the students. The school's "fellowship" project provides students with Hershey employee visits to build long lasting relationships and provide career counseling. Additionally, the school is located in Hershey, Pennsylvania, a city created by Milton Hershey himself. The city offers security, a church, a post office and other services for the students. Many of its designs resemble Hershey chocolate products, such as the Hershey Kisses light posts. Most notably perhaps is the fact that Mr. Milton Hershey prohibited The Hershey Company from using the School as an advertisement or marketing strategy. The school's primary goal is to provide young orphans with the skills necessary to support themselves and their families in thefuture.

Hershey company believe sharing can make good thing happen,so in Hershey company think social responsibility is all about sharing.Hence,in Hershey company they work

hard to make the good thing happen,example create the delicious product with standard ingredients,help the farmer increase their income,reduce waste to zero and etc.

Beside that ,as early as 1909,Hershey and his wife -- Catherine established the Hershey industrial school.A school for orphan we know today as know the Milton Hershey school Hershey company believe providing education opportunities to those orphan was always important priority.Hershey believe education change theirfuture,give them a better lifestyle and make the coutry progress

The concept of social responsibility of Hershey company:

GOOD BUSINESS,BETTER LIFE,BRIGHT FUTURE.

Good business -- operating in a socially responsible and environment sustainable manner while appropriately

managing the company assests and upholding the shareholder interest.

Example:

A lot of coco farmer their didn’t have any opportunitiesto be educated.Therefore those farmer can’t get a standard lifestyle for their family.They try to seeking more money but they didn’t realise the problem.But Hershey company figure the problem so they try to send some professional knowledge worker to teach those farmer how to increase their productivity,and try to increase the family income of the farmer to increase the standard of living.So they can more easily send their children to school,and support the need of their children.Beside thatHershey company also have develop a programme by using their mobile technology to get more information across those farmer to provide them two way exchange with extension agent and research expert.

Hershey company also have a system to fully utilize the resources as well as minimize the landfill to prevent enviroment pollution to protect our earth.Hershey companybelieve in do the right thing in good to business.

Better life -- what the Hershey company fostering and focus company’s resource and efforts to positively impactthe communities,employees and stakeholder.

Example:

The Hershey Co. joins 49 other companies in being selected as one of America’s most community-minded companies in The Civic 50— an annual recognition of

businesses committed to making a difference in the communities where they operate.

Hershey company built their founder’s belief that”business is a matter of human service”and the remarkable employees at Hershey work to bring goodness tothe world.

Therefore Hershey company participate to a lot of programs such as “Good to Give Back Week”,”Stop Hunger Now”.

In the “Good to Give Back Week” more than 1,700 Hershey employees across five countries participated in the event.They make a meaningful difference through social projects with a track record of making positive,measurable impact in the community.

In the “Stop Hunger Now” event,more than 600 Hershey employees worked together for three hours in dozens of assembly lines to create and pack 210,000 nutrient-filledmeals that were delivered to children in need. Then, 30,000 meals were sent to feed hungry children in El Salvador, and 180,000 meals were shipped to Liberia as part of the massive response to the Ebola crisis.

Bright future -- What the Hershey company creating by extending their legacy and commitment to education and through a focus on nutrition for a children in need.

Example:

Hershey comapny has a special related with the Milton Hershey School,Hershey help educated and care around eighteen hundred kids.In addition,Hershey will invited business student to get unique international confessionary,Milton Hershey school will invited different guess to teach the student about the job as well as business knowlegde,eg:packaging,marketing,negotiations skills.Furthermore, there were a lot of student prefer this programme,because they think that is unique and can learn a lot of opportunities for student share your firsthand business experience.A lot of people think that this action is actually help the country from every aspect,because it can help the poor kid have the opportunities to change their future,create more expert to the country.

Hershey Process

Different forms and flavours of chocolate are produced byvarying the quantities of the different ingredients. Other flavours can be obtained by varying the time and temperature when roasting the beans.

References

Website: http://en.wikipedia.org/wiki/The_Hershey_Company

: http://www.thehersheycompany.com/brands/iconic-brands.aspx#/Hershey's

: http://www.thehersheycompany.com/social-responsibility/shared-goodness/betterlife

Product: Hershey Bars

Hershey Kisses

Hershey’ syrup 1950s

Hershey Advertisement 1918