Building On Milton Hershey's Legacy of Commitment To Consumers, Community and Children..

Building on Milton Hershey’s legacy of commitment
to consumers, community and children...
Corporate
social
responsibility
Report 2009
...we provide high-quality Hershey products...
The Hershey Company Corporate Social Responsibility report 2009

...while conducting our business in a socially responsible
and environmentally sustainable manner.
The Hershey Company Corporate Social Responsibility report 2009

2 P
rofile & 14 Marketplace 25 Environment 33 Workplace 42 Community
Strategy
3 CEO‘s Message 16 Product Quality 26 Conserving Energy 36 Employee Engagement 45 Contributing to
to Stakeholders and Safety and Reducing Emissions Communities
37 Employee Well-Being
4 About The Hershey 18 Responsible Sourcing 28 Conserving Natural 47 Volunteerism: Hershey
39 Training and Development
Company Resources Employees Making
20 Addressing the
40 Diversity and Inclusion a Difference
7 Our Heritage Challenges in 30 Monitoring Sustainability
Cocoa Sourcing Across the Supply Chain 41 Looking Ahead 48 Looking Ahead
9 Our Mission and Values
22 Promoting Responsible 30 Preserving Biodiversity
10 Our CSR Strategy
Consumption
31 Continuous Improvement 49 More info
12 Stakeholder Engagement
23 Marketing with Integrity Case Studies
13 Corporate Governance 49 Awards
24 Looking Ahead 32 Looking Ahead
50 Alliances
53 Learn More about Hershey

54 GRI Content Index
“One is only happy in proportion as he makes

others feel happy, and only as useful
as he contributes his influences for the finer
callings in life”
—Milton S. Hershey (1857–1945)
1 The Hershey Company Corporate Social Responsibility report 2009

Welcome to
The Hershey Company’s This report describes our performance on key economic, social, and
First Corporate environmental issues—our Corporate Social Responsibility (CSR).
Unless otherwise noted, it covers the 2009 calendar year, which is
Social Responsibility also our fiscal year, and the operations of The Hershey Company,
including Hershey’s wholly owned and joint-venture operations.
Report We applied the Global Reporting Initiative (GRI) G3 Sustainability
Reporting Guidelines in developing the report and are self
declaring a GRI application level of “C.” We have included a GRI
index on page 54.
We understand that achieving progress in social responsibility
requires commitment and accountability, driven by continuous
company improvement. As this is our first reporting effort, we
have not reported on some GRI indicators because we do not
currently track the needed information. In other instances, we
are not reporting on indicators because we believe the informa-
tion is either proprietary or not material to our industry and
operations. Through this report and the development of a CSR
strategy, we are seeking to better understand issues of concern
to our company and our stakeholders and to improve both our
performance and future reporting.
We plan to issue a full report every two years and to provide
an annual update on the development of our strategy and our
performance with regard to our goals.
Your feedback is important, please take this brief survey to let us
know how we are doing. In addition, you may contact us with
specific comments or questions.
> You can find additional information about

CSR at The Hershey Company at:
www.thehersheycompany.com/social-responsibility
/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

Dear Hershey Stakeholders:
On behalf of Hershey employees, I am pleased to introduce our We have set CSR priorities and goals for improvement in four areas:
company’s first Corporate Social Responsibility (CSR) Report.
Marketplace – engage in fair and ethical business dealings
Our employees are committed to our mission of Bringing sweet through responsible sourcing, through alignment with our
moments of Hershey happiness to the world every day. customers and through our promise to our consumers.
Fulfilling this mission requires winning in the marketplace, acting
Environment – practice environmental stewardship through-
responsibly and embracing sustainability. In all of our efforts, we
out our value chain, including product design, sourcing and
are guided by our values, which have enabled our company to
efficient operations.
succeed over the long term.
Workplace – foster a desirable place to work to engage
Our belief in the importance of CSR dates to the founding of
employees, who contribute to our continued success.
our company more than 100 years ago. Today, it is an integral
part of our global business strategy. Community – work to positively impact society and our
local communities.
This report reflects Hershey’s role as a global organization that
produces, markets and sells chocolate and confectionery products We are engaged in an ongoing effort to develop goals and
in more than 50 countries around the world. Accordingly, our CSR targets for each area, many of which are covered in this report.
efforts stretch from our headquarters and manufacturing While we are proud of our accomplishments and the progress
facilities in Hershey, Pennsylvania, to our operations in countries we have made, we understand that much remains to be done.
such as Mexico and India to cocoa-farming villages of West Africa. For example, we must continue to pursue responsible sourcing
while maintaining the integrity and high quality of our products.
I am confident that our global team of employees will continue to
fulfill our mission as we find creative ways to drive improvements
Our belief in the importance of CSR dates in environmental, social and economic performance.
to the founding of our company more Thank you for reading our report and for providing your feedback.
We are committed to continuous improvement and are eager
than 100 years ago. Today, it is an integral to hear from our stakeholders. In addition, we look forward to
part of our global business strategy. reporting to you regularly on our progress.
Sincerely,
David J. West
President and Chief Executive Officer

About the Hershey Company
The Hershey Company (“Hershey”),
headquartered in the United States in
Hershey, Pennsylvania, is the largest
producer of quality chocolate in North
America and a global leader in chocolate
and sugar confectionery. We market
confectionery products in over 50
countries worldwide, employ more than
13,000 people and have revenues of
more than $5 billion per year.
Some of the best-known and loved
candies in the world are Hershey
brands, including Hershey’s, Reese’s,
Hershey’s Kisses, Twizzlers, Jolly
Rancher, Maha Lacto and Pelon
Pelo Rico.
Our wholly owned subsidiary, Artisan
Confections Company, markets
premium brand chocolate offerings such
as Scharffen Berger and Dagoba.
> For more detailed prod-

uct information, please visit
www.hersheys.com.

Primary Product Groups: Our Global Operations
Chocolate and confectionery products We have a presence in 50 countries through marketing, We have a number of Hershey’s
sold in the form of bars and bags
sales, distribution and manufacturing operations. Our sales Chocolate World stores that provide
and marketing organization, which consists of Hershey consumers with the Hershey experience
Licorice and sugar candy North America, Hershey International and the Global through interactive attractions and
Marketing Group, is designed to: merchandise. Key store locations include
Hershey, Pennsylvania; Times Square in
- leverage our marketing and sales leadership in the United New York City; The Magnificent Mile,
States and Canada Chicago; Niagara Falls, Canada; Shanghai,
Boxed chocolates - focus on key strategic growth areas in global markets China; Singapore; and Dubai, United
- build capabilities that capitalize on unique consumer and Arab Emirates.
customer trends Hershey owns 12 manufacturing
Hershey North America continues to build our chocolate facilities in North America (see
Mints and gum
and confectionery market position in the United States and page 6) and we have international
Canada, leveraging our scale of operations in order to capitalize joint-venture partnerships with:
Grocery products including baking on consumer and customer trends within each country. This
Lotte Confectionery Company Ltd. and
ingredients (such as cocoa powder includes developing and growing our business in our chocolate,
and baking chips), chocolate syrup, Lotte China Investments Holding Co.,
sugar confectionery, refreshment, grocery and food service
peanut butter, dessert toppings Ltd., China. Through a manufacturing
product lines.
and beverages agreement with Lotte Confectionery Co.,
Specialized products and services for Hershey International markets chocolate and confectionery Ltd., Hershey International manufactures
business customers products, beverages and grocery items worldwide and pursues high-quality confectionery products in
profitable growth opportunities in key markets, primarily in China for the domestic market and other
Latin America and Asia. This organization is responsible for countries in the region.
international subsidiaries in Mexico, Brazil, China and India
Pandurata Alimentos Ltda., Brazil.
that manufacture, import, market, sell or distribute chocolate,
We have partnered with Bauducco,
Key Markets: confectionery and beverage products.
a highly regarded baked goods manufac-
Our Global Marketing Group is responsible for building turer, to make and distribute our products.
United States global brands, developing transformational growth platforms, Our confectionery expertise and high-
managing brand positioning and guiding portfolio strategy. quality products, coupled with Bauducco’s
Canada
This organization also analyzes market-specific insights and supplier and distribution strengths, are
develops strategies and platform innovations for Hershey North driving regional growth.
Mexico
America and Hershey International.
Godrej Industries, Ltd. (GIL), India.
Brazil Our distribution network provides for the efficient shipment Our partnership with Godrej, an iconic
of our products from our manufacturing plants to distribution Indian consumer goods company with
India centers strategically located throughout the United States, manufacturing assets and well-known
Canada and Mexico. We use primarily common carriers to beverage and confectionery products,
China
deliver our products from these distribution points to our customers. provides a platform for developing
Hershey’s presence in the region.

2009 Economic Indicators: In 2009, Hershey
Wholly Owned Facilities Hershey’s 40-Year History in Mexico
owned and operated
Employees Worldwide 12,000 (approx.) 1
10 manufacturing Continues with Completion of New Plant
Hershey, Pennsylvania (three locations)
in 2009
Countries where our products are marketed 50 (approx.) facilities in the
Lancaster, Pennsylvania
United States and
Countries where our products Hazleton, Pennsylvania The Hershey Company has been producing
two in Mexico.
are manufactured 17 Stuarts Draft, Virginia high-quality chocolate and confectionery
Our joint-venture
products and beverages in Mexico for more
Manufacturing facilities facilities are located Memphis, Tennessee
than 40 years, at our Guadalajara Plant in
(12 wholly owned, four joint venture) 16 in China, India and Robinson, Illinois El Salto and at our new Monterrey Plant in
Brazil. Hilo, Hawaii
Net sales $5.3 billion Centro Escobedo. We invested in state-of-
Ashland, Oregon the-art technology for our new facility and
Net earnings 2
$497 million Centro Escobedo, Nuevo Leon, Mexico continue to upgrade our existing factory to
Shareholder return (2009) 6.5 percent ensure both the safety of our employees and
El Salto, Jalisco, Mexico
the highest standards of quality for our products.
Dividends paid $263 million
We are proud of the cooperation and
Diluted earnings per share 2
$2.17 per share Joint-Venture Manufacturing teamwork among Hershey employees, who
Facilities facilitated the construction and start-up of
Operating cash flow $1.1 billion (jointly operated with Hershey) our new facility. This project was completed
Operating costs in 2009, in just 18 months, ahead of schedule
Shanghai, China (49% interest)
(incl. interest expense)2 $4.5 billion and on budget. The start-up team in Mexico
São Paulo, Brazil (51% interest) received valuable support and guidance from
Capital expenditures $126 million Mandideep, India (51% interest) local Hershey employees as well as teams
Income taxes 2
$273 million Chittoor, India (51% interest) from our company headquarters in Pennsylvania.
Worldwide payroll $614 million This was part of an overall network modern-
ization in which we invested millions of dollars
Community investments 3
$12 million
in plants in the United States, including those
in Virginia, Illinois and Pennsylvania.
Long-term growth outlook: 3–5% annual net sales
6–8% annual EPS (diluted)
Stock Exchange: New York Stock Exchange (NYSE)
Ticker symbol: HSY
Full-time employees. Please see Workplace section for more detail.
1
The amounts exclude business realignment and impairment charges.

2
Refer to the Community section for details.

3
These pro forma measures are used in evaluating results of operations for internal
purposes. The company believes exclusion of such items provides additional information
to investors to facilitate the comparison of past and present operations.
> More Information about our financial performance can be found in our
Annual Report on Form 10K for 2009 and in the Investor Relations section of our
company website, www.thehersheycompany.com/ir/.

Our Heritage
From 1894, when he started the firm that Milton Hershey’s business practices A Longstanding Commitment sion. The construction of buildings such
would become The Hershey Company, extended to what business leaders today to Community as The Hotel Hershey and the Hershey
Milton S. Hershey conducted his business recognize as the foundations of respon- Theatre, as well as the expansion of the
The first great milestone in the Hershey
according to the following principles: sible and sustainable business. Hersheypark Entertainment Complex,
tradition of community service was
- make and sell a high-quality product Hershey has grown from a modest manu- helped put townspeople to work when
Milton and Catherine Hershey’s establish-
at a fair price facturer in a small town in the farmlands jobs were scarce in the 1930s. Milton
ment in 1909 of the Hershey Industrial
of central Pennsylvania. Today, Hershey Hershey also believed that a community
- provide meaningful work and fair School for orphans, known today as the
is a global confectionery company with with a vibrant recreational, cultural and
wages to employees Milton Hershey School. In 1918, Mil-
employees and facilities in communities commercial life would attract and retain
ton Hershey placed his entire personal
- give back to the communities where in the United States and abroad and with workers who were committed to The
fortune—$60 million—in trust for the
the company operated customers across the globe. The principles Hershey Company as well as the commu-
school. Today, under the administra-
- be a good steward of the land and that guided Milton Hershey in the early nity of Hershey, Pennsylvania.
tion of the Hershey Trust Company, the
its resources 1900s still guide The Hershey Company. school provides a nurturing environment,
Just as our founder did, we believe that quality education, housing and medical
conducting business responsibly with our care, all at no cost, to more than 1,800
employees, communities, customers and disadvantaged boys and girls. The Trust
consumers is not only what’s right; it’s remains The Hershey Company’s largest
good for our business. stockholder, making these children and
some 8,800 graduates of the school di-
rect beneficiaries of our business success.
Milton Hershey invested heavily in the
community, embarking on a massive
Milton S. Hershey
with Milton Hershey building project in the town of Hershey
School student, Robert during the height of the Great Depres-
Schaffer, 1923.
“When I got my diploma from Mr. Hershey he

shook my hand very heartily and patted me on the
back. That had to be one of the best days of my
life. He was just a great man, always my hero to
tell the truth.”
— Bill Dearden,
‘40 MHS graduate, President & CEO
The Hershey Company 1976-1985

Environmental Stewardship Continuing Milton Hershey’s Legacy
The Hershey Company’s long history of Mr. Hershey’s values have lived on. In
environmental stewardship demonstrates 1963 the M.S. Hershey Foundation
the alignment of environmental sustain- served as the conduit for a $50 million
ability and business interests. An example gift from the Milton Hershey School Trust
is an early water-management program to The Pennsylvania State University for
undertaken in Hershey, Pennsylvania. a medical school and teaching hospital
By 1948, quarry drilling in the Hershey known as the Milton S. Hershey Medical
area had largely depleted the sources of Center. The gift established a medical
water that the main Hershey plant relied school, teaching hospital, and research
Today, students attend
classes at farmer field
on. The company engaged hydrogeolo- center in Hershey. It still serves all of
schools in West Africa. gists to create a resource management Central Pennsylvania and is now interna-
program to ensure a long-term supply of tionally recognized for outstanding
Helping at the Source: water in the area. patient care, biomedical research and
Hershey’s Support of Cocoa-Farming Communities professional health education.
Hershey was also an early leader in
Cocoa beans are sourced from Ghana and Nigeria. Administered recycling. As early as the 1930s, the com- In 2009, Hershey pledged to give
tropical countries where poverty by Elizabethtown College in
pany began recycling cocoa-bean shells $1 million to the Penn State Hershey
and underdevelopment are nearby Elizabethtown, Pennsylva-
to make fertilizer and cocoa-bean mulch. Children’s Hospital over the course
everyday realities for millions of nia, the program began sending
families. Cocoa crops provide an teachers to those developing
In 1937, the company began using waste of five years.
important source of income to nations in 1961. Over the next 11 created in its confectionery manufactur-
West African families and to the years, Teachers for West Africa— ing, such as cocoa butter from cocoa-
governments of Ghana and Côte fully funded by Hershey—pro- bean shells, to make other products such
d’Ivoire. As a responsible com- vided a total of 258 teachers to as soap.
pany, Hershey is committed to Ghana and Nigeria. Hershey’s
supporting social, economic and commitment to cocoa farming
farming programs that will make communities in West Africa and
a difference in the lives of cocoa elsewhere has evolved and
farmers and their families. deepened over the years. In 2009,
For more than half a century, through $1.3 million in contribu-
Hershey has supported cocoa- tions and dues, Hershey funded
farming communities worldwide nonprofit organizations that
>F
OR MORE on our environ-
by helping them develop more conduct on-the-ground programs mental stewardship efforts,
productive agricultural practices, to promote sustainable livelihoods see the Environment section
in West Africa. of this report.
build educational and community
resources and eliminate exploit- > For a more detailed discussion
ative labor practices. of our efforts to responsibly source cocoa > for more on our efforts
and assist cocoa-farming communities, to support the communities
In the 1950s, we launched a in which we live and work,
please see the Marketplace and
program called Teachers for West Community sections of this report. see the Community section
Africa to support the nations of of this report.

Guided by Strong Values
Bringing sweet moments

Our Mission:
of Hershey happiness
to the world every day
Open to Growing Making a One
> To learn more
about Our Values, please
Possibilities Together Difference Hershey
visit http://www. We are Making a
We are Open to We are Growing We are One Hershey,
thehersheycompany.com/
social-responsibility/ Possibilities by Together by sharing Difference by leading winning together
our-values.asp. embracing diversity, knowledge and with integrity and while accepting
seeking new unwrapping human determination to individual responsibil-
approaches and potential in an have a positive ity for our results.
striving for continu- environment of impact in everything
ous improvement. mutual respect. we do.
The Spirit and Heritage of Our Founder Lives on in Hershey’s Mission Drives Results
Our Values Today.
We deliver on our mission by:
Our values inspire our decision-making. We communicate them
to all employees as we expand globally, ensuring a common - Building a sustainable and competitively
commitment to our founder’s guiding vision in all that we do. advantaged business model
- Delivering consumer-driven insights and
In 2008, we redefined our values through an employee-led, sustainable innovation
company-wide process to identify and clearly articulate the
- Driving unrelenting focus on predictable
behaviors that are most relevant for our success. In 2009, we
and profitable growth in North America
began assessing adherence to our values as part of the employee
and key international markets
performance management evaluation for all salaried employees.
- Delivering a superior employee value
proposition

Our Corporate Social Responsibility Strategy
Hershey’s corporate strategy calls for We believe our unique heritage and In 2009, we created our global cross- Our CSR efforts are organized into four
building “a sustainable and competi- values provide Hershey with a strategic functional CSR leadership team to establish pillars: Environment, Workplace, Market-
tively advantaged business model.” CSR competitive advantage that we can a comprehensive CSR vision and strategy, place and Community. We have identified
supports this strategy by providing the leverage to: coordinate resources, align communica- priority areas and measurable targets to
context and focus for driving continuous tion, and identify improvement opportuni- track improvements over time in each of
-R
educe operating costs through
improvement that balances stakeholder ties. These efforts quickly delivered results these pillars.
continuous improvement to optimize
interests and ensures the company’s in the form of many of the accomplish-
input requirements and minimize In this report, we publish targets that
long-term viability. ments listed in this report. We have created
environmental impacts we developed within each pillar. We are
a strategic framework for CSR that will
currently developing additional goals
- Increase the appeal of our product guide our approach going forward.
and targets that align with both our CSR
and corporate brands to consumers
and company strategies.
and customers
-P rovide a platform for positively engag- Our CSR Framework provides a high-level
ing employees and communities on overview of our CSR strategy.
issues that are important to them
Hershey’s CSR Framework Environment Community Marketplace Workplace

Minimize impact while meet- Positively impact society and Engage in fair and ethical Foster a desirable
Continuing Milton Hershey’s ing functional requirements local communities where we business dealings place to work
legacy of commitment to Sustainable Product
live and work Integrity of Supply Safety & Wellness
consumers, communities Design Corporate Philanthropy Consumer Well-Being at Work
and children, we provide Sustainable Sourcing Contribution of Alignment with Customers Openness & Inclusiveness
high-quality Hershey Efficient Business Expertise Employee Value
products while conducting Operations Employee Giving & Proposition
Volunteerism
our business in a socially
responsible and environmen-
tally sustainable manner.

Our Approach to CSR CSR is a strategic priority. We formally
review our activities and progress on a
As a sign of our commitment and to quarterly basis with our chief executive
ensure focus, we have established a new officer and from time to time with our
CSR department as a separate unit, led board of directors.
by our vice president of CSR, who reports
to the vice president of public affairs. The development of a comprehensive
strategy, together with priorities, targets
To foster engagement across functions and and supporting programs, is underway.
business units, our CSR leadership team
currently consists of 22 leaders represent- We report our progress in the “Looking
ing diverse perspectives and business Ahead” section of Marketplace, Environ-
priorities. In addition, three members of ment, Workplace and Community
the Hershey executive team provide sections of this report.
oversight and support through formal
As The Hershey Company continues its
sponsorship and participation in
global growth, we are excited to advance
quarterly progress meetings.
our CSR strategy. By doing so, we will
ensure that we are building our future
based on our heritage and our values.
CSR is a company-wide, strategic priority

for Hershey. A cross-functional leadership
team provides strategic direction and reviews
progress on CSR.
CSR Leadership
Continuous Innovation Public Affairs

Improvement
Insights Quality & Regulatory
Engineering Compliance
International
Global Sourcing Sales
Logistics
Human Resources Strategy
Marketing

Stakeholder Engagement
Increasingly, our stakeholders are interested in how we conduct Consumers Employees
our global business. We value their perspective in helping us set Our success depends on the Satisfied and engaged employees
our CSR priorities. To ensure that we understand what matters to trust consumers place in us. make better business decisions.
them most, we engage with stakeholders in a variety of ways. We invest in market research to develop We use employee surveys and focus
insights about consumers’ preferences groups to learn about employee issues
and habits. and employee engagement.
Senior leaders provide business updates
Our Consumer Relations department
to employees through communications
answers inquiries from consumers such as town hall meetings, video, e-mail
that we receive through our website and newsletters.
or the toll free number found on all
of our packaging.
Interest groups
Business partners and NGOs
We are part of a complex network We bring focus, credibility and
of interdependent companies, resources to organizations that help
including customers and suppliers further our interests as a responsible
of raw materials, intermediates and company.
technology. Our progress on CSR We are members of organizations that
priorities requires coordination with work to address issues of concern to
our business partners. our industry and our stakeholders, such
We participate in industry groups such as the World Cocoa Foundation, the
as National Confectioners Association International Cocoa Initiative and the
and GMA Grocery Manufacturers Healthy Weight Commitment Foundation.
Association. We fund many organizations that align
Industry conferences and trade shows with the causes we support, as outlined
provide a forum to collaborate on in our Community section.
solutions for our industry.
Investors Communities and Regulators

Providing an appropriate return to We strive to positively impact
investors allows us the freedom to
local governments public policy and regulation through
satisfy other stakeholders. By making communities where we constructive engagement with
live and work better, we gain their government agencies.
As a publicly traded company, we issue support to enable our success. We contribute expertise to regulators
updates on our financial performance
in our regulatory filings. Many of our employees volunteer in for industry task forces.
their communities. We comment on proposed regulations
Our Investor Relations department
answers investor inquiries. Hershey employees participate on through our Government Relations group.
community and local government We submit compliance reports to a
We present information to investors boards and committees. number of regulators.
and analysts in quarterly analyst calls
and at conferences. Company representatives meet with
community leaders to discuss business
and community planning.

Corporate Governance
The day-to-day business of Hershey is The board of directors has eight members, As a global company, Hershey expects all Our Relationship with The Milton
carried out by our employees under including Mr. West. With the exception of of its employees to operate by the Code. Hershey School
the direction and supervision of our Mr. West, all of the directors, including All directors and employees, including
President and Chief Executive Officer the non-executive chairman of the board, joint-venture employees, are required to The Hershey Trust Company, as
David J. West. Led by non-executive are independent, as are all members of undergo training in the Code and annu- trustee for the benefit of Milton
Chairman James E. Nevels, The Hershey the audit, compensation and executive ally certify their adherence to it. The Code Hershey School (the “Milton
Hershey School Trust” or the “Trust”)
Company’s board of directors: organization, finance and risk manage- is translated into eight languages.
maintains voting control over The
ment, and governance committees.
- reviews the company’s performance, Hershey encourages the reporting of Hershey Company. Any transaction
strategies and major decisions Our Corporate Governance Guidelines ethics concerns, and a number of not in the ordinary course of
are reviewed annually by the board of channels are available for stakeholders business between the company
- provides oversight of the company’s and our majority stockholder, the
directors and were last revised on to do so. Employees may use the tradi-
compliance with legal and regulatory Milton Hershey School Trust, or
February 23, 2010. These guidelines, tional means of confidential conversa-
requirements, enterprise risk manage- entities related to the Milton Hershey
along with committee charters, the Code tions with a manager, a member of the
ment and the integrity of our financial School Trust, must be approved
of Ethical Business Conduct and other human resources department staff or a
statements in advance by a special committee
governance materials, are available on member of the Hershey executive team. composed of directors elected by
- provides management oversight, the Investor Relations page of Hershey’s Contact information is printed in the owners of our Common Stock voting
including review of the chief executive corporate website. Code, on the company’s intranet and on separately, or in the absence of
officer’s performance and succession posters displayed at all company facilities. such directors, the independent
planning for key management roles Code of Ethical members of the executive committee.
Business Conduct In addition, Hershey maintains a Concern No director affiliated with the
- provides oversight relating to compen- Line staffed by an independent third Milton Hershey School Trust, however,
sation for the chief executive officer, Hershey’s Code of Ethical Business party. Individuals can make anonymous may participate in the approval of
key executives and the board, as well Conduct (the Code) applies to every reports to the Concern Line through a such transactions. For more
as oversight of compensation policies director, officer and employee, including toll-free telephone number or via a information, refer to our 10K.
and programs for all employees employees at joint-venture locations. It dedicated website (www.hersheyconcern. The Trust uses its funds to support
addresses a range of issues from conflicts com). Stockholders may contact the and administer the Milton Hershey
of interest and antitrust to fair trade, independent directors or the Audit School, making the school’s
sustainable supply chain management Committee. We encourage good-faith students important beneficiaries
and workplace diversity. The board’s reporting of all concerns and prohibit of Hershey’s success.
audit committee oversees communica- retaliation for good-faith submission of
tion of and compliance with the Code, a report.
while the company’s ethical business
> A copy of the Code of Conduct can be found at
practices committee provides executive-
www.thehersheycompany.com/about/conduct.asp.
level focus and support.

Marketplace
Bringing sweet moments

of Hershey happiness
to the world every day
At Hershey, we make the chocolate and confectionery
brands that 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 consumers.
The Hershey Company’s marketplace Hershey products have
a strong reputation for
extends globally from the furthest quality and affordability.
reaches of our supply chain to the In the 2010 EquiTrend®
consumers who enjoy our products. Harris Interactive® annual
brand equity ranking,
Hershey’s value chain encompasses the Hershey had three of the top
company’s global supply chain, from the
#1
10 brands in the United
farmers who supply the raw materials for States (out of 1,000 brands
in 42 categories).
our ingredients to our customers who
sell our products to the consumers who
enjoy our products. We are committed
to dealing fairly and ethically with all
parties in our value chain. We work hard
to ensure the responsible and sustain-
able sourcing of raw materials; the safe
processing of those ingredients into
wholesome, affordable products of the
highest quality; and the promotion of
responsible habits in the enjoyment of
our products.
#3
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 own uncompromising quality
standards, which often exceed industry
and regulatory standards, to our prod-
ucts wherever they are made. We also
engage in and help lead industry-wide
food marketing practices and support
various programs that promote the
responsible consumption of snacks and
#6
treats as part of a healthy lifestyle.

Product Quality and Safety
At The Hershey Company, we rigor- continuously to strengthen our quality raw and roasted peanuts and the
ously pursue the highest standards assurance programs, in part by sharing handling of these products during
of quality in our products and the information with others in the food manufacturing to ensure final product
ingredients that go into them. We industry and keeping up with industry safety. We have implemented all of the
have quality assurance programs in place best practices. We’re proud to say that as task force’s recommendations.
everywhere we operate—from our 12 a result of our stringent quality assurance
manufacturing facilities wholly owned and We have also committed substantial
practices, Hershey experienced no serious
operated by Hershey to our four joint- resources to attaining food safety
(Class 1) recalls in 2009.
venture plants. We also require rigorous certification recognized by the Global
standards at the facilities of our 60 In the wake of two incidents affecting Food Safety Initiative (GFSI) at all of our
third-party manufacturing partners and the almond industry in 2004, Hershey wholly owned manufacturing facilities
our worldwide network of suppliers. All scientists voluntarily participated for five and joint-venture operations by the end
must adhere to Hershey’s high standards years in an almond quality and safety of 2012. GFSI establishes benchmark
of excellence, even where our stringent program sponsored by the Almond Board standards for food safety across the
guidelines exceed local requirements. of California. world, recognizing only those standards
that meet its criteria.
Although Hershey was not affected by
Leading with Best Practices the 2009 peanut recall in the United In North America, we are pursuing the
In recent years, the global food industry States, Hershey scientists volunteered to Safe Quality Food Level 3 certification.
has experienced serious, high-profile participate in the U.S. Peanut Safety Task Our China and India joint-venture facilities
food safety problems that have prompted Force that was created in the wake of are seeking the Foundation for Food
concern and raised questions among the recall. The task force charter is to Safety Certification’s Food Safety System
consumers. The problems also resulted provide industry-wide guidance to food Certification (FSSC) 22000. Our Brazilian
in heightened scrutiny by government manufacturers on the safe handling of joint-venture facility has targeted certifica-
regulators and legislators. We work tion by the British Retail Consortium (BRC).
We work 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.

Wholly Owned Facilities Joint Venture Facilities - In Brazil, our São Roque manufactur- Global Manufacturing Partners
ing facility is in position to attain BRC
At our 12 wholly owned plants, we As co-operators of our joint-venture We rely on a worldwide network of
certification in 2011.
continue to review and refine our food plants in China, India and Brazil, we set contractors, including manufacturers
safety policies and procedures. We and control standards for safety, labor - In India, we’re working with Godrej and packers, to supplement our manu-
recently made significant capital invest- practices, quality and operational efficiency. Industries, Ltd., to implement world- facturing capacity. Every contractor
ments to take our proven food safety Our joint-venture quality and safety class quality systems and achieve FSSC working with Hershey in such capacities
program to an even higher level. The achievements and initiatives include: 22000 at our two joint-venture manu- must have the necessary assets and
improvements include: - In China, we merged two strong facturing facilities and ensure the same capabilities, operate according to the
corporate cultures and quality assurance for our supplier and distribution partners. ethical standards prescribed in our
- a staff increase of more than Supplier Code of Conduct (see page 5)
programs by leveraging the best prac-
20 percent to both our quality assur- > Please see page 5
and monitor food safety and product
tices of the two companies we brought for a description of our
ance team at our manufacturing facilities joint ventures. quality in the same manner as Hershey-
together in our Shanghai joint venture.
and to our team focused on third-party owned and joint-venture facilities.
In 2009, the facility attained certifica-
manufacturing and supplier quality
tions to the ISO 9000 (quality) and ISO These contractors must pass a rigorous
- a $50 million capital investment in 22000 (food safety) management quality audit to become Hershey business
infrastructure improvements and systems standards, an important step partners. Recently, we informed all global
upgrades to food safety equipment toward attaining FSSC 22000 in 2010. manufacturing partners that, as a
condition of future business, their
facilities must be working to obtain
certifications recognized by the GFSI.

Responsible Sourcing
Ingredients and Packaging Due to the breadth of our product lines,
we source more than 10,000 different
The safe supply of our ingredients and
ingredients and packaging materials from
packaging materials is one of our primary
suppliers throughout the world. We
concerns. All materials used to manufacture
purchase commodities such as cocoa and
Hershey products must come from Hershey-
sugar as processed ingredients and utilize
approved suppliers and meet agreed-to
commodity futures markets to manage
specifications. We have a rigorous supplier
price risk. We purchase other ingredients
quality program, coordinated at the
and packaging materials via a complex
corporate level by our regulatory compli-
network of global suppliers. All of our
ance and procurement professionals along
ingredients and packaging undergo
with research and development and
extensive quality checks to ensure food
manufacturing personnel. We interview
safety and freshness.
prospective suppliers extensively, inspect
their facilities, and test ingredients and Local Sourcing We are focused on building more
other supplied materials, as necessary, Determined to produce the best sustainable and responsible supply chains
before approving them as vendors. milk chocolate in America, company that benefit the environment, producers, representing over $500 billion in annual
founder Milton Hershey located his growers, workers and other stakeholders. revenues works to maintain common
Once approved, vendors are re-audited
company in the heart of Pennsylva- At the same time, we expect all partici- responsible sourcing standards. The
on a risk-based frequency determined nia’s dairy land, where he could pants in the supply chain to meet our AIM-PROGRESS principles rest on four
by such criteria as each supplier’s perfor- source fresh milk directly from local stringent criteria as a world-class manu- pillars of responsible sourcing:
mance history and participation in farms. Today, we continue to source facturer and our customers’ and consum-
recognized third-party audit programs, our raw materials, including our dairy
attainment of GFSI-recognized certifica-
ers’ demands for safe, high-quality - Fair labor standards
needs, locally whenever feasible.
products and ethical operations. - Health and safety
tion, test results, specific regulatory risks Nearly 75 percent of the overall
associated with the supplied material, tonnage of dairy products used at Hershey takes a collaborative ap- - Environmental management
country of origin and other sourcing Hershey comes from within 100 miles proach to responsible sourcing. We
of our manufacturing facilities.
- Business integrity
issues such as human rights and environ- work with suppliers and peer companies
mental impacts. See, for example, our on an ongoing basis to exchange best With the AIM-PROGRESS network of
discussion of cocoa sourcing on page 20. practices, ideas, and information on companies, Hershey engages with suppliers
responsible sourcing and sustainable to establish programs that improve their
In addition to audits, we verify vendors’ sourcing practices across these four pillars.
supply chains. To facilitate this approach,
adherence to specifications through a The goal of AIM-PROGRESS is to train
Hershey joined AIM-PROGRESS in 2010.
targeted sampling and testing program more than 500 vendors via five global
This group of 25 global companies
conducted at Hershey’s world-class labora- responsible sourcing seminars in 2010, and
tories and at qualified external laboratories. to further expand the program in 2011.

Supplier Code of Conduct Promoting Supplier Diversity Our approach is to partner nationally Mentorship Program. This program offers
and locally with organizations to mentorship to small businesses owned
In 2010, Hershey revised its Supplier Code The Hershey Company understands the
identify diverse suppliers. Hershey is by women and minorities. In addition, we
of Conduct (the Supplier Code) to better importance of supporting a range of
a member of The National Minority sponsored a seminar series through
reflect industry best practices and clearly businesses as a way of stimulating the
Supplier Development Council, Inc., a Kutztown University for the 2009 mentor
communicate to our suppliers and co- overall economic growth of our commu-
nonprofit organization chartered in 1972 class, whose members were in their
manufacturing partners our expectations nities. We have long maintained a
to provide increased procurement and second year of start up. Seminar topics
for responsible and ethical behavior. In supplier diversity program to build strong
business opportunities for minority included finance, legal, marketing, and
revising the Supplier Code, we considered relationships with companies of diverse
businesses of all sizes. human resources.
several international standards for supply- ownership. Our policies encourage
chain sustainability. For example, the relationships with small businesses— We continually look for opportunities at We track our quarterly spending with
Supplier Code aligns with the standards especially those owned or operated by all levels and in all spending categories diversity suppliers. The amount of money
established by AIM-PROGRESS. minorities, women, veterans and disad- for certified suppliers. In areas where the spent with diversity suppliers increased in
vantaged and disabled individuals—that diversity of suppliers is limited, we strive 2009 by more than 12 percent.
Hershey’s Supplier Code of Conduct
might qualify as first- or second-tier to develop promising minority and
addresses:
suppliers to support our global opera- women-owned businesses. Hershey
- Legal compliance and tions. We also invest with minority- participates in the Harrisburg Regional
business integrity owned banks, and we have done Chamber & Capital Region Economic
- Social and working conditions business with minority-owned firms as Development Corporation Diversity
- Environment and sustainability bond underwriters. Advisory Council’s Women and Minority
- Food safety
- Verification and compliance
In the third quarter of 2010, we commu-
nicated the revised Supplier Code to the
majority of our vendor base and began
supplying copies of the Supplier Code to
all of our new suppliers.
>f
or A copy of the revised Supplier Code, please visit
www.thehersheycompany.com/business/suppliers.asp

Addressing the Challenges in Sourcing Cocoa
As the largest chocolate producer in the chocolate. We purchase these products Working with Industry Peers
United States and one of the largest in the directly from third-party suppliers, which
We have taken a number of steps as a
world, the well-being of the global cocoa source cocoa beans grown mainly in
company and an industry to increase
supply chain is of vital importance to us. Asian, West African and South American
farm-level incomes, build community
Partnering with the Bill and Even as we seek to assure a continuing equatorial regions. Because West Africa
sustainability and address the troubling
Melinda Gates Foundation supply of high-quality cocoa, we embrace accounts for approximately 70 percent of
issue of child labor in cocoa-producing
our responsibility to ensure that the cocoa the world’s supply of cocoa beans, we
During 2009, the program trains farmers regions. As a founding member of the
we buy is grown and harvested in a focus our efforts to promote sustainable
World Cocoa Founda- in better production World Cocoa Foundation (WCF), the
tion announced a techniques, quality sustainable manner. That means encour- cocoa sourcing in that region.
International Cocoa Initiative (ICI) and
new $40 million improvement and busi- aging a cocoa supply chain that provides
Improving the livelihood of cocoa the WCF’s ECHOES (Empowering Cocoa
initiative funded by ness skills; develops adequate incomes to small cocoa farmers,
farmers and their families in West Households with Opportunities and
the Bill and Melinda farmers’ organizations advances efforts to promote responsible
Africa and other cocoa-growing Education Solutions) Alliance, we work
Gates Foundation and to better meet labor in cocoa-farming communities,
regions around the world is an with industry peers to address these
chocolate manufac- member needs; promotes gender equity and protects and
turers, including improves farmers’ important business issue for Hershey challenges in a collaborative manner. We
preserves the environment.
Hershey, to signifi- access to market and a concern for our stakeholders. contribute executive, programmatic and
cantly improve the information; and Cocoa products—including cocoa liquor, Cocoa is a very labor-intensive crop, and administrative leadership, as well as
livelihoods of provides opportunities cocoa butter and cocoa powder processed 90 percent of global production is financial support. In addition, we have
approximately 200,000 for diversification into from cocoa beans—represent the majority sourced from three million family farms partnered with cocoa processors, global
cocoa farmers in Côte alternative food and of the raw materials that go into Hershey’s averaging just 5 to 10 acres in size. In confectionery and cocoa associations,
d’Ivoire, Ghana, cash crops to maximize such a decentralized industry, effective local governments and nongovernmental
Nigeria, Cameroon farmers’ income and organizations such as the Bill and
outreach depends on an understanding
and Liberia. The security. Melinda Gates Foundation to address
of complex cultural, geographic and
development-related differences. Improv- some of the key challenges in cocoa-
ing the lives of cocoa farmers will farming communities.
continue to require our commitment to
programs that demonstrate successful
outcomes. No company or entity alone Hershey is a Founding Partner of
can solve the problems of agricultural the World Cocoa Foundation (WCF)
sustainability. We will continue to work
Established in 2000, the WCF’s
with our stakeholders to make meaning-
mission is to promote a sustainable
ful progress on these issues.
cocoa economy through economic
and social development and envi-
> For more information ronmental stewardship in cocoa-
about the Harkin-Engel Protocol and our
industry’s work to improve the livelihoods
growing communities.
of cocoa communities, please visit the
National Confectioners Association web
> For more information,
site, www.candyusa.org.
visit www.worldcocoafoundation.org.

Assisting Cocoa Farmers Around
the World
The issues affecting cocoa-growing
communities are not limited to West
Africa. Hershey is working to promote
sustainable livelihoods in other regions
from which we source cocoa, including
the Dominican Republic, Jamaica,
Nicaragua and Peru.
In Rio San Juan, Nicaragua, we sponsor
From left to right: local farmers in the Java
region, in Vietnam and with a representative from a project that provides technical
the WCF’s ECHOES program in West Africa. assistance to a small cooperative of
cocoa farmers, helping them improve
the quality and marketability of their
During the past ten years, our company -e
stablish farm schools based in cocoa detailed national plans of action to produce. Under this two-year commit-
and our industry partners have funded fields and vocational training opportu- implement the Harkin/Engel Protocol. ment, a partnership with Lutheran
programs to: nities for underserved rural youth in World Relief, Hershey evaluates at least
- The Global Issues Group, an ad-hoc
cocoa-growing regions 15 samples a year from the cooperative
- improve financial returns for cocoa- group convened in September 2001 by
and makes two site visits each year
growing farms and communities and As a result of these and other programs, the major chocolate and cocoa industry to evaluate the farmers’ fermentation
promote greater transparency in the Hershey and its industry peers have made companies and affiliated trade associa- system and make suggestions for
marketplace a positive impact on an estimated tions specifically to address the labor improvement.
500,000 farmers and their families— challenges in the cocoa sectors of West In the Dominican Republic, La
- develop effective farmer support
about 2.5 million people altogether. Africa as articulated in the Harkin-Engel Cooperativa Agropecuaria de
organizations that facilitate group
Protocol. The GIG monitors and collects Comercialización y Servicios Múltiples
selling, training and services Targeting Results data on the incidence of child labor in “Red Guaconejo,” or La Red, is a
-promote sound, productive farming Hershey participates in the following the cocoa sector. cooperative of 152 cocoa farmers from
practices, including improved planting initiatives to address child labor and 20 communities. These and other
- The International Cocoa Initiative, cocoa farmers in the Dominican
material and crop diversification other issues in the cocoa industry: (ICI), which was formed to oversee and Republic have limited access to credit.
- engage in environmental steward- - T he Harkin-Engel Protocol, an sustain efforts to eliminate the worst To help address this issue, in 2008
ship efforts that emphasize healthy agreement signed in 2001 by the forms of child labor and forced labor in Hershey signed a letter of intent to
soil, clean water and integrated pest Chocolate Manufacturers Association the growing and processing of cocoa purchase cocoa from La Red if the
management and the World Cocoa Foundation, beans and their derivative products. quality met the company’s require-
With a unique model of community ments. In 2009, we partnered with
- develop healthy, sustainable farms which is aimed at eliminating abusive
and family engagement to change child Atlantic Cacao to purchase beans from
and communities based on respon- child labor in the production of cocoa. the cooperative. La Red used our
The governments of Côte d’Ivoire and labor practices and behaviors, the ICI
sible, safe labor practices and opportu- purchase as collateral to finance the
Ghana are working to implement has reached 259 communities in Ghana
nities for women and youth harvest and collection of a shipment
and Côte d’Ivoire.
of cocoa—the first ever exported by
the cooperative and a milestone in
their development.

Promoting Responsible Consumption
In recent years, health officials, govern- Nutrition Labeling The diversity of our product lines creates Hershey Center for
ment regulators and consumers have challenges for labeling consistency when Health & Nutrition
Hershey’s nutrition labeling is designed to
become more aware of the role that diet packaging graphics or product formula-
help consumers effectively manage what
and eating patterns play in the health tions change. In 2010, we invested in a Established in 2006, the Hershey Center
they eat. Hershey was the first company in for Health & Nutrition, or HCHN,
and well-being of people everywhere. As new system that enables us to handle
the U.S. confectionery industry to imple- sponsors and collaborates with
a successful chocolate and confectionery such label-related changes more efficiently.
ment nutrition labeling on its products, 20 other institutions through research
company, we have a responsibility to
years before such labeling became manda- Given the international nature of on the impact of cocoa, chocolate
educate consumers on how confection-
tory. Hershey remains committed to helping Hershey’s business, we comply with the and nuts on cardiovascular health,
ery can be a part of a balanced diet and
consumers make informed eating choices. labeling requirements of the countries weight management, cognitive
a healthy lifestyle. function and exercise stamina. HCHN
where our products are distributed.
We use a sophisticated software system, communicates research findings to
On the product side, Hershey has During 2009, we employed a third-party
SAP Recipe Management, to store other scientific organizations, health
responded to these concerns with technical service, as well as in-country
ingredient information gathered from professionals and associations such
sugar-free versions of some of our most legal expertise, to assist us with ingredi-
vendors and specified in product recipes. as the American Dietetic Association
popular products as well as snack-size ent and nutrition labeling compliance. and the American Heart Association.
Ingredient information from vendors
and individually wrapped miniature items Worldwide, Hershey had no label-related In the past five years, HCHN has
yields more accurate nutrition measures
(most under 100 calories per piece) to fines, penalties or recalls in 2009. published more than 20 scientific
than what is available from generic
enable portion control that meets the papers and four book chapters on
nutrient databases. The information is Health and Nutrition Research
dietary needs of consumers. In addition, such topics as flavanol antioxidants
used to generate our nutrition labels,
we are involved in several efforts to Hershey’s health research and awareness in commercially available chocolates
which include a nutrition facts panel, and clinical studies on the consump-
promote healthy eating habits, weight efforts go far beyond nutrition labeling.
ingredient statement, allergen statement tion of cocoa and dark chocolate.
control and exercise. Through our Hershey Center for Health &
and statement of kosher status.
HCHN’s outreach and awareness
Nutrition, and in cooperation with the
efforts range from international
National Confectioner’s Association, we
scientific conferences to informational
work with an industry-wide group of appearances at local health fairs and
scientists in developing standard mea- schools. In 2009 HCHN launched a
surement procedures for the bioactive website (http://www.hersheys.com/
components in chocolate and cocoa, also nutrition-professionals/) to help
known as phytonutrients. We also educate consumers and health
conduct nutrition-related research on the professionals on the benefits of cocoa,
benefits of chocolate, nuts and other chocolate, nuts and other snacks and
snacks in a balanced diet. the benefits of eating a variety of
foods in moderation.
New recipes are developed

in our test kitchens.

Marketing with
Healthy Weight Commitment
Promoting Health and Fitness Hershey’s Track & Field Games
Integrity
Hershey has long recognized the impor- At The Hershey Company, we have
Many Americans today are consuming Founded in 1977, Hershey’s Track &
more calories than they expend.
tance of a healthy, active lifestyle for a longstanding commitment to honest,
Field Games has grown from a local
Nutrition and health experts refer people of all ages. We have a record of playground event in a single com- transparent communications with
to this imbalance as the “energy supporting health education and fitness munity to an international program consumers about our products and our
gap” and point to it as the cause of programs in the community, especially promoting healthy lifestyles and company. This commitment guides
America’s obesity epidemic. among children and youth, as well as in fitness among children ages nine the way we market and advertise our
At The Hershey Company, we our own workplace. The oldest and through 14. Over the years, more products, especially with respect to
recognize that such an important largest of these is the 33-year-old than 10 million children in 3,000
children. In 2007, we adopted a set of
public health issue calls for Hershey’s Track & Field Games, which communities from the United States
Global Marketing Principles that apply
innovative thinking, responsible we founded and continue to sponsor and Canada have participated in
Hershey’s Track & Field Games. In
to marketing and sales messages directed
action and a commitment to exclusively. Most recently, we became a to consumers across all media, including
partnership. In May 2010, we annual competitions held in vari-
founding member of the Healthy Weight broadcast and cable television, print
announced our founding member- ous track and field events in their
Commitment Foundation, dedicated to advertising, radio, online and digital
ship, along with 15 other food communities, more than 400,000
helping Americans of all ages bring their participants vie to advance to advertising and video. Please visit the
manufacturing companies, in the
diet and exercise into better balance. district meets and then to state and Marketplace section of our CSR site to
Healthy Weight Commitment
Foundation. In alliance with the provincial finals. The culmination of read the Global Marketing Principles.
Partnership for a Healthier America, Hershey’s Track & Field Games is a
the Healthy Weight Commitment North American Final, held in Hershey’s communications reflect the
Foundation has pledged to help Hershey, Pennsylvania, each August. diversity of consumers and the cultural
consumers reduce their caloric values of local markets wherever Hershey
intake by introducing lower-calorie > Learn more at
does business around the world. All
product choices; changing product www.hersheystrackandfield.com. Hershey advertising is reviewed by a
recipes where possible to lower the cross-functional board to ensure compli-
calorie count of current products; ance with law, Hershey’s policies and
and/or reducing portion sizes of Hershey’s values.
existing single-serve products.
Hershey has upheld its pledge not
>L
earn more at
to advertise in media targeted to
www.healthyweightcommit.org. children under the age of 12 in all
U.S. markets. We participate in the
Council of Better Business Bureau’s (CBBB)
Children’s Advertising Review Unit and
helped found and participate in the CBBB’s
Children’s Food and Beverage Advertising
Initiative. Hershey is also a participant in
the Children’s Food and Beverage
Advertising Initiative administered by
Advertising Standards Canada.

Looking Ahead We are dedicated to driving integrity across our entire value chain,
from the ethical sourcing of raw materials to how we engage
with consumers around the world. Hershey is an industry leader in
fair and ethical business practices. As our company expands to
meet the demands of the global marketplace, our mission and
values guide us in delivering high-quality products while engaging
our stakeholders on the issues that matter the most to them.
Marketplace: Our Progress

Theme Priorities/Objectives Metrics/Targets Programming
Integrity of Supply ●●●● ●●● ●●●
Consumer Well-Being ●●●● ●●● ●●●
Alignment with Customers ●● ● ●●
● = not started | ● ● ● = being developed | ● ● ● ● ● = fully in place
Priorities Marketplace
Targets
Foster responsible supply through a Issue the revised Hershey Supplier Code Promote partnerships with cocoa-sector
supplier code of conduct and by facilitat- of Conduct to our vendor base and to all companies, NGOs and governments to
ing the sharing of industry best practices new suppliers in 2010 develop and implement agreed-to mile-
stones to measure progress in sustainable
Enhance consumer food safety through Attain food safety certification recog- cocoa farming by 2011
investment in systems and processes that nized by the Global Food Safety Initiative
exceed required standards at all of our owned manufacturing Increase the number of local
facilities and joint-venture operations: Hershey’s Track & Field Games meets
Advance and fund programs that by 20% by 2013
enhance livelihoods and ensure fair labor • Attain British Retail Consortium food
practices in cocoa-growing regions safety certification at our joint-venture Launch, in partnership with the Ameri-
manufacturing facility in Brazil by the can Dietetic Association, Moderation
Promote healthy lifestyles and respon- end of 2011 Nation, a nutrition education campaign,
sible consumption of our products in the United States in 2010
through sponsorship of education and • Attain FSSC 22000 food safety
fitness programs certification at our three joint-venture
manufacturing facilities in Asia by the
Develop customer relationships that end of 2012
allow us to understand and anticipate cus-
tomer program priorities

Environment
The Hershey Company fully embraces its role as a
steward of the environment. We are committed
to making and delivering our 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.
Hershey Mexico
employees and their
families planted 1,800
trees in 2009 and 7,000
in 2010.

Conserving Energy and Reducing Emissions
Our environmental sustainability efforts are local and global in Starting in 2007, Hershey initiated we are assessing the feasibility of To reduce energy usage, we also
scope and impact. They extend throughout our value chain: a company-wide reduction of our using renewable energy, such as instituted a lighting efficiency
across our supply chain to our manufacturing facilities, distribu- energy consumption and green- wind or solar power, at various program at all plants and distribu-
tion centers and offices to the hands of our consumers. These house gas (GHG) emissions Hershey facilities. tion centers. We reduced energy
efforts include: through the adoption of more consumption from lighting by
efficient technologies and Facilities more than 50 percent, which
- conserving energy and reducing emissions conservation-minded business Third-party energy audits at our represents an annual reduction of
- conserving natural resources practices. We have made mean- manufacturing plants have helped more than 20,500 metric tons of
ingful progress in reducing energy us to identify opportunities for carbon dioxide (CO2) emissions—
- monitoring sustainability performance and progress
consumption and emissions in improvement in conservation and the equivalent of removing more
across our supply chain
both our facilities and our efficiency. As a result of these than 3,500 cars from the road
Our primary challenge is to develop innovative ways to reduce transport operations. We have set each year. Our goal is to reduce
audits, we made substantial
our environmental impact while ensuring the quality and value our goals for further improvements in greenhouse gas emissions at our
investments in more efficient
customers and consumers expect from The Hershey Company. the next two years. U.S. manufacturing plants by 15
lighting; wastewater treatment
plant biogas recovery; and percent by the end of 2011 from
We will continue to pursue new
improved compressed-air, boiler our baseline year of 2008.
opportunities to reduce energy
use and emissions. For example, control and boiler stack econo-
mizer systems at several plants.
Energy Conservation and GHG Reduction Efforts*

Compressed Boilerstack Boiler Control
Initiatives Lighting Biogas Air Condensing Efficiency
Through energy savings initiatives Achieved Efficiency Recovery Improvements Economizers Improvements
outlined in this table, we reduced
energy use in our U.S. manufactur- Annual 26 million kWh 66,050 million 1.5 million kWh 47,304 million 39,610 million
ing plants and distribution centers Energy BTU/year BTU/year BTU/year
Savings
by 9.55 percent and realized
annual savings of $3.9 million from Annual 15,743 3,863 907 2,769 2,317
2007 to 2009 on a total investment Emissions
of approximately $9.6 million. Reductions
(in metric tons CO2e)**
Timescale of 2007-2009 2008-2009 2008-2009 2008-2009 2008-2009

Actions and
Associated
Events
*Scope: U.S. manufacturing plants and distribution centers

**CO2e, short for Carbon Dioxide Equivalent, is the measure used to compare emissions
of various GHGs based on their global warming potential (GWP). The CO2e for a gas is
derived by multiplying the tons of the gas by the associated GWP.

Transportation and Distribution -D
istribution center consolidation -“
No idle” mandate This policy, posted
By closing one center in Kennesaw, and strictly enforced at all Hershey
We substantially reduced overall truck
Georgia, and expanding the territory distribution centers, requires drivers to turn
hauls, fuel use, and vehicle emissions in
served by our Eastern Distribution off engines when not in motion to reduce
our North American transport operations
Center in Hershey, Pennsylvania, we both fuel consumption and emissions.
in 2009 through a number of efforts:
reduced the number of truck hauls in
Signifying our commitment to continual
- Continuous inbound/outbound the region.
optimization of our transportation
trucking Our Project Overdrive initia-
- Rapid unloading Our Green Light practices, The Hershey Company is a
tive, which began in November 2008
Receiving Program reduces emissions by partner in SmartWaySM, an innovative
and is slated for full implementation in
allowing suppliers’ trucks to trailer-drop program of the U.S. Environmental
2011, significantly reduced the number
or unload rapidly rather than spend Protection Agency (EPA). Designed to
of Hershey truck hauls in North Ameri-
time in idling mode. The program promote environmentally cleaner, more
ca. The initiative coordinates inbound
reduced idle time by 4,800 hours in fuel-efficient transportation practices,
Monitoring and Reporting and outbound shipments to plants and
2009, saving 300 gallons of fuel, SmartWaySM recognizes companies that
Greenhouse Gas (GHG) distribution centers to maximize use of
reducing CO2 emissions by three metric are committed to reducing the environ-
Emissions carrier capacity. Through Project
tons, and saving more than $300,000. mental impact of their freight delivery
Overdrive, we reduced fuel consump-
In 2009, The Hershey Company par- and logistics operations. In 2009,
tion in our transport operations in 2009 - Increased truck weight By consolidat-
ticipated in the Carbon Disclosure Hershey received the EPA’s SmartWay
by 1.3 million gallons of diesel fuel and ing orders and using the full load capacity
Project (CDP), an independent, not- certification. The majority of Hershey’s
our CO2 emissions by 5,216 metric of tractor trailers for both customer and
for-profit clearinghouse for data carrier partners are SmartWaySM certified.
regarding corporate GHG emissions
tons, saving $6.2 million along the way. inter-facility shipments, we reduced the
reporting and climate change strat- total number of trucks on the road by
egies. Our CDP reports are available 1,994 in 2009 versus 2008.
through the organization’s website
(www.cdproject.net), and we have
also made the most recent report
available on Hershey’s website.
In 2010, we will establish a Carbon The majority of Hershey’s
Footprint Reduction Working Team carrier partners are
to identify opportunities and set SmartWaySM certified.
priorities for improving our carbon
management and reducing the
company’s carbon footprint.

Conserving Natural Resources
As part of our effort to conserve natural Sustainable Packaging visibility and accessibility. In 2009, we Estimated Recycling Rates for Hershey
resources, Hershey is committed to using Our packaging is designed to deliver the implemented similar design changes for Packaging Materials
less energy, reusing materials where consistently high product quality that our club-store display pallets for two other In the United States, over 80 percent of
feasible and disposing of waste in a consumers expect. At the same time, popular products. our packaging material by weight is
responsible manner. We encourage our we’re committed to sustainable packag- We recognize that small changes can recyclable. Based on the U.S. recycling
suppliers, customers and consumers to ing practices that reduce environmental make a big difference. Over the past four rates contained in the U.S. EPA’s 2008
do the same. impacts, use natural resources wisely and years, we’ve reduced the overall weight MSW Report, we estimate that almost
maximize recycling. of our recyclable 22-ounce Hershey’s half of our total packaging material, or 48
We have a sustainable packaging Syrup bottles by 7.6 percent through a percent, is recycled in the United States.
strategy that includes baseline goals for redesign of the bottle cap and removing Percentage of Estimated
total packaging percentage
reducing the amount of packaging material from the body of the bottle. materials used recycled
materials we use and using more sustain- These changes in the weight of a single
Corrugate 52.0 76.6
able materials, such as paper certified to product container eliminated the need
Forest Stewardship Council or Sustain- for 12.5 metric tons of high-density
polyethylene in 2009 alone. Metal Cans 0.8 62.8
able Forestry Initiative standards, in our
packaging. To those ends, we: Through inventory reduction initiatives,
we reduced the number of pallets we Paper Board 18.5 35.2
- consider potential lifecycle environ-
mental impacts during our packaging used in 2009 by approximately 17,000
design process units compared with 2008. By improving PET 0.2 27.2
our loading practices and training bottles/cans
- continually review our packaging
warehouse staff, we reduced in-house
design and functionality and materials HDPE 4.5 19.8
damage in our distribution centers by bottles/cans
sourcing with our partners, and
more than 11 percent and in-transit
implement more sustainable alterna- 1.5 14.8
damage by 12 percent from the previous Glass
tives wherever feasible
year. We also saved more than 23,000
- e liminate waste through more effective corrugated cases for repacking. On the Foil 2.0 9.5
and efficient warehousing and distribu- sourcing side, we are working with our
tion practices corrugate suppliers to ensure that the
PS Trays 0.5 6.9
- encourage the recycling of secondary raw materials used in our packaging are
packaging materials by our suppliers and as sustainable as possible, through
of consumer packaging by consumers chain-of-custody sustainable forestry PP 1.8 4.7
certification and other means. bottles/cans
For example, in 2008 we changed the
design of the full-pallet display for Finally, we encourage the recycling of Bags, Labels, 16.5 0.0
55-ounce packages of Hershey’s Kisses our packaging by our retail customers Overwraps
chocolates used at some of our retailers. and consumers. In an initiative started in 1.2 0.0
Plastic trays/
The new design reduced the overall 2009, we are developing new packaging containers
packaging weight per pallet by 41 graphics for corrugated cases and
pounds (51.5 percent) by eliminating paperboard cartons to remind retailers Other 0.5 0.0
packaging while enhancing product to recycle.

Water Conservation gallons (more than 56,000 liters) per day 2010, we plan to have completed waste-
and eliminated the need for a $1.5-million reduction assessments at all wholly owned
The Hershey Company has a solid record of
wastewater treatment plant upgrade. facilities. Our objective is to identify waste
managing its water resources dating back
streams that can be eliminated or reduced
to the late 1940s, when the company In 2009, our wholly owned facilities in the as well as opportunities for recycling. In
retained the services of hydrogeologists to United States and Mexico discharged a total 2009, the manufacturing plants that
develop a water-resource management of 1.44 million cubic meters of water underwent assessments reduced their waste
program. This work ensured long-term treated in compliance with local regulations. by 1,270 metric tons, or 11 percent, versus
sustainable sources of high-quality water For most facilities, treated and/or untreated
The Hershey Recycling Center 2008. Our goal is a 15-percent reduction
for the Hershey plant in Hershey, Pennsyl- wastewater is discharged to municipal in waste sent to landfill by the end of 2011
Since 1980, The Hershey Company vania. To this day, we are committed to publicly owned treatment plants for final
has operated its own recycling cen- versus the baseline year of 2008.
wisely managing water and promoting treatment and discharge to approved
ter in Hershey, Pennsylvania. Five conservation across the enterprise. receiving streams. Two facilities perform Materials Management
Hershey plants in Pennsylvania and
complete wastewater treatment and and Spill Prevention
one in Virginia, which account for In 2009, we employed an external firm
discharge or use the treated effluent onsite.
almost 80 percent of our produc- to conduct water-use audits at eight of We have comprehensive materials-
tion, send recyclables to the center. our wholly owned manufacturing plants Recycling and Waste Reduction management and spill-prevention
In addition, our largest distribution to assess water use and identify opportu- programs in place at our manufacturing
center, our Technical Center, our nities for conservation and improvements Seventy-two percent of all waste gener-
offices and our largest retail attrac-
plants and distribution centers. Spill-
in water-resource management. Recom- ated by Hershey manufacturing plants in
tion (Hershey’s Chocolate World, prevention materials are strategically
mendations from these audits, which North America (the United States and
which hosts more than 3 million visi- located at multiple loading docks and
continue in 2010, will be evaluated and Mexico) is recycled. Our goal is to reach a
tors per year) send their recyclable materials-handling locations to prevent
prioritized as part of our ongoing efforts recycled-waste rate of 80 percent by the
materials to the Hershey Recycling accidental releases of materials from
to optimize water-resource management end of 2012.
Center. A significant amount of the contaminating the environment or
company’s waste is processed in and conservation. Improvements at our We completed waste-reduction assessments entering adjacent waterways. The
this facility, resulting in substantial Stuarts Draft plant in Virginia have at seven of our manufacturing locations in Hershey Company had no significant
diversion of waste from landfill. resulted in a reduced flow of 15,000 the United States in 2009. By year-end spills in 2008 or 2009.

Monitoring Sustainability Preserving
across the Supply Chain Biodiversity
We rely on suppliers to source many of We have updated our Supplier Code of The Hershey Company does not own,
our raw materials and processed ingredi- Conduct to help ensure that Hershey lease or manage any operational sites in
ents and to manufacture some of our suppliers act within acceptable environ- or adjacent to protected areas of high
products. Our sustainability efforts mental standards. The revised Supplier biodiversity. Similarly, we do not own,
encompass our suppliers’ efforts to Code, communicated in the third quarter lease or manage any operational sites in
conserve and preserve natural resources. of 2010, specifically addresses resource areas where habitat remediation has
conservation, reduction of GHG and occurred. We carefully monitor the
other emissions, energy use and waste- segments of our supply chain, such as
water and solid waste management. The cocoa growing and macadamia nut
code will enable us to better track and growing, that are most likely to have an
understand our suppliers’ practices and impact on diverse habitats. We have
emphasizes monitoring and measuring identified no supply chain operations,
environmental impacts. The code will products or services that have a signifi-
help improve our suppliers’ environmen- cant impact on such areas.
tal performance and, in turn, our own.
As a company, we have no formal pro-
> For more on our revised Supplier Code gram or strategy for managing impacts
of Conduct, please see page 19.
on biodiversity. However, our Internal
Sustainable Palm Oil Sourcing Environmental Audit and Acquisition
Environmental Due Diligence programs
We use palm oil in some of our chocolate include procedures for evaluating land
products. We purchase approximately use and other activities conducted on
9,500 metric tons per year. By compari- or adjacent to our properties. We will
son, the global market for palm and palm manage potential future impacts through
kernel oil is nearly 50 million metric tons these programs.
per year. We understand the many
concerns related to the unsustainable
production of palm oil, including negative
impacts on biodiversity, soil health, the
rights of indigenous peoples, land rights
and other issues. Hershey exclusively
purchases palm oil from suppliers that are
members of the Roundtable on Sustain-
able Palm Oil (RSPO). RSPO was founded
by the World Wildlife Federation and
other organizations to promote the
growth and use of sustainable palm oil.
> learn more at www.rspo.org.

Case Studies in Continuous Improvement
One of the best means of continuous Full Circle SustainabilityTM at Dagoba “Using the Whole Nut” in Hilo Leading Sustainability Efforts in El Salto
improvement in sustainability perfor-
Dagoba Organic Chocolate was founded in 2001 The Hershey Company’s Hilo, Hawaii, facility The Hershey Company has been manufactur-
mance is to share best practices with by Frederick Schilling, whose mission was to create has found untapped sources of clean energy ing products in Mexico for more than 40 years.
others inside and outside our company. exceptional chocolate using the finest organic very close to home. The plant accepts used Today, the El Salto Plant, in the state of Jalisco,
Through such sharing, we expand ingredients. Starting with hand-poured and motor oil from nearby citizens and businesses; manufactures three lines of Hershey products
our awareness of sustainability issues hand-wrapped organic chocolate bars, Mr. it repurposes the shells removed from one of and leads multiple local efforts in environmen-
and our expertise in addressing them Schilling rapidly expanded the company’s product its key product ingredients, macadamia nuts; tal stewardship.
while deepening our engagement with line to include 17 bars, plus drinking chocolates and it burns both to produce electricity and Solar domes that bring natural light into the
various stakeholders in the company and baking products, available nationwide steam for its manufacturing processes. This plant eliminate the need for lighting 10 hours
and the communities in which we through specialty grocers, natural foods stores practice provides 60 percent of the plant’s per day, resulting in a savings of more than
operate. These case studies are examples and chocolate establishments. The Hershey power requirements and keeps both substanc- 65,000 kWh and eliminating 36 metric tons of
Company acquired Ashland, Oregon-based es out of the waste stream. It is estimated that CO2 emissions per year. The plant’s production
of our efforts to continuously improve
Dagoba in 2006. the oil-collection program alone recovers, and schedule is designed to minimize energy con-
and share best practices.
A commitment to Full Circle SustainabilityTM was recycles as fuel, more than 130,000 gallons sumption during peak utility hours, and em-
part of Mr. Schilling’s vision from the beginning. (492,000 liters) of waste motor oil annually. ployees are encouraged to carpool. In addition
Hershey has adhered to that vision while learning to hosting its own recycling program, the plant
from Dagoba’s sustainable business practices. As has held events to educate employees about
part of its ongoing sustainability efforts, Dagoba segregating recyclables from ordinary waste, as
continues to closely monitor its supply chain. well as an “adopt-a-tree” event where Hershey
Dagoba sources organic cocoa from growers in employees and their families planted 1,800
Latin America. trees in 2009.
Dagoba is a strong supporter of local environmen-
tal sustainability efforts. As a founding member of
the Ashland Green Business Program, the
company promotes resource conservation, waste
and pollution reduction and environmental
outreach and education for employees and the
general public.
Dagoba’s business processes are rigorously focused
on making sustainable choices. As an example,
Dagoba purchases renewable energy credits from
the Bonneville Environmental Foundation that
offset approximately 225 metric tons of GHG
emissions each year. It uses 100 percent recycled
corrugated paperboard and office paper.
Dagoba’s chocolate bar wrappers are printed with
soy-based ink on 50 percent recycled, 30 percent
post-consumer waste-based paper, fully recyclable,
with a Full Circle SustainabilityTM tip for consumers
on the inside of each wrapper.

Looking Ahead
We are committed to continuously improving Hershey’s efforts to
protect the environment. Reducing environmental impact across
our value chain is central to building a sustainable business and
enhances our competitiveness through innovation, cost reduction,
reputation and brand equity. As Hershey expands globally, we will
continue to develop programs that challenge us to make progress
in all facets of our business.
Environment: Our Progress
Sustainable Product Design ●●●● ● ●●
Sustainable Sourcing ●●● ● ●●
Efficient Business Operations ●●●● ●●●● ●●●
Priorities Environmental
Targets
Minimize our environmental impacts Reduce GHG emissions by 15% from Increase waste recycling in manufac-
through product design primary sources or energy conservation turing plants** from 72% in 2009 to
by 2011* 80% by 2012
Better understand impacts of our
current inputs and learn how we can Reduce water use by 15% by 2011* At least one manufacturing plant with
meet product requirements with more zero waste to landfill by 2012 (except
Reduce waste generated by 15%
sustainable sourcing where applicable regulations require a
by 2011* waste material to be disposed in landfill)
Decrease environmental impact
Complete waste audits of all Hershey
from our manufacturing and distribution
plants** by 2010
processes through operating efficiencies
*Scope: U.S. manufacturing,
baseline year of 2008
**Scope: wholly owned

Workplace
People.
Performance.
Passion.
Our mission is to deliver an employee
value proposition that ignites passion,
“unwraps” potential, builds capability,
drives performance, and WINS in the
marketplace.
33 The Hershey Company Corporate
The Hershey
Social
Company
Responsibility
Corporate report
Social
2009
Responsibility
report 2009

At Hershey, we recognize that our company will succeed
and grow only if we attract and retain the highest qual-
ity workforce: talented, engaged employees dedicated to
connecting with consumers and fulfilling our company’s
mission and values. We are committed to treating our em- Hershey’s Global Workforce*
ployees well. We strive to ensure that we reward our employ-
ees with more than a paycheck—from providing a welcoming 16000
environment and a competitive compensation and benefit
program to comprehensive development opportunities. 1,579
12000 4,415
1,458
8000
2,827 7,677
121
4,812 1,588
4000 Part-Time
2,865 Salaried
Hourly
Total
0
9,097 4,574 13,671
United States International Total
* As of December 31, 2009.


Employee Engagement
Hershey has more than 13,000 full- and “What You Think Matters”
part-time employees worldwide, repre- Employee Surveys
senting a broad range of personal and
cultural backgrounds, values, and Hershey conducts employee surveys as a
aspirations. Maintaining employee way to measure engagement and priori-
engagement with the company starts tize and implement initiatives that will
with attractive compensation and improve performance and increase
competitive benefits, which we call Total employee satisfaction. In 2007, we
Rewards. True engagement, however, conducted a survey of all salaried
like true job satisfaction, is based on employees to gauge how the company
more than compensation and benefits. was performing as an employer. The
results clearly showed that employees
wanted a stronger sense of Hershey’s
strategic vision. In response, we sought
input from throughout the organization, directly engaged employees through Employee Benefits
and senior management developed a company-wide programs to foster
progress on our key CSR issues. Our Total Rewards program combines
new strategic plan and mission for The compensation with a competitive and
Employees have favorable
Hershey Company, which was then We will assess our overall employee flexible benefits package. In the United
perceptions of Hershey’s CSR efforts
widely communicated. Employees were survey process on an ongoing basis to States, employees can select the benefits
Of 3,500 employee responses to our 2008 also invited to discuss action-planning in ensure that we are producing the most that meet their needs. The “Working at
salaried employee survey: response to survey results. valuable and actionable insights. The Hershey Company” brochure
79% 75%
A follow-up survey in late 2008 and early explains our benefits offerings for U.S.
The Quality Through
2009 showed that the new strategic plan employees in detail. These include
Engagement Program
and involvement of employees in business comprehensive health and life insurance,
planning improved collaboration, align- The Hershey Company’s Quality Through with health and life plans available for
ment and engagement across the busi- Engagement (QTE) program was estab- employees and domestic partners;
responded favorably responded favorably
ness. The rollout of the strategic plan has lished in the 1980s. QTE is Hershey’s retirement and investment plans; em-
to the statement to the statement
that “Overall I am that “The company’s translated into measurable improvements global network to appreciate, connect ployee assistance and adoption pro-
satisfied with the ac- actions that support in our performance in the marketplace. and empower employees. It enables grams; tuition reimbursement; scholar-
tions this company is my community and employees to recognize and reward ships for eligible employees and their
taking to be socially our environment The 2008 survey measured employee peers and colleagues for efforts or service children and much more. In other
responsible.” have a positive im- satisfaction with the company’s CSR that make a difference in the workplace. countries, we offer comparable, locally
pact on how I view
policy and performance, providing a QTE enhances employee engagement by competitive Total Reward programs.
the company.”
baseline for future indicators of employ- igniting passion, unleashing potential
ee engagement in this area. Labor Relations
and building personal capabilities.
Since we conducted our review of the Hershey has a combination of union and
2008 survey results, we have made CSR nonunion plants. Hershey works to
a strategic priority, formed a cross- maintain a positive and professional
functional CSR leadership team and relationship with all of our employees
worldwide and, where applicable, with
their bargaining representatives.

Employee Well-Being
A safety-minded, healthy workforce is an conference in October 2009, where repre- -n
o work-related fatalities at any
efficient, productive, satisfied workforce. sentatives from 11 major food companies Hershey facility in 2009; Hershey has
Just as we invest to provide a safe work discussed and shared solutions for safety not had an employee work-related
environment for our employees, we also problems and concerns. fatality in the past 25 years
invest in programs and education that
Through senior management support, - T otal Recordable Incident Rate improved
enable our employees to achieve and
the dedicated efforts of our entire work- 16 percent
maintain healthy lifestyles.
force and ongoing implementation of -D
ART (Days Away, Restricted, Trans-
Ensuring Workplace Safety best practices, we have achieved con- ferred) rate improved 20 percent
tinuous improvement in employee safety
A commitment to employee safety on the in the workplace since 2006, as shown in - L ost Workday Case Rate improved
job is fundamental to our values. Hershey’s the Hershey’s Safety Performance graph. 30 percent
goal is to consistently achieve best-in-class
safety performance. We also believe that Hershey has significantly reduced the - e mployees at a number of U.S. and
enhancing employee safety must be an frequency and seriousness of work-related international operations achieved
industry imperative, and that best practices accidents, injuries and incidents among significant milestones for safe work
should be shared among our peers. To that our employees over the past four years. performance
end, Hershey hosted a two-day safety In 2009, Hershey’s safety performance
achieved new company milestones for the
third consecutive year. Highlights include:
Hershey’s Safety Performance
Since 2006, Hershey’s 5

Total Recordable In-
cident Rate and Lost 4
Workday Incident
Rate decreased by 45
percent and 54 per- 3
cent, respectively.*
2
0
2006 2007 2008 2009
Lost Workday Incident Rate Total Recordable Incident Rate
* Excludes joint ventures (no data available).

Promoting Healthy Lifestyles Our wellness programs include online Lifestyle Returns
resources, tobacco cessation programs
Our vision and practice for employee and disease- and health-management Through our Lifestyle Returns pro-
well-being is holistic, focusing on each coaching, along with fitness centers gram, full-time U.S. employees and
employee’s total health. Providing health at our corporate campuses and fitness dependents who participate in a
care for employees goes beyond paying rooms at many manufacturing locations. Highmark medical plan can take part
for the costs of illness and injury. It be- We offer extensive worksite wellness
in a variety of voluntary health and
gins with preventive health-management wellness programs designed to help
programs at many of our international them maintain their health and make
and education programs that promote locations, including flu-shot clinics and
healthy lifestyles that help employees get better, more informed healthcare
internally developed wellness programs choices. Employees and their spouses
and stay well. For more than 15 years, to meet local needs. or domestic partners who complete
The Hershey Company has offered a
the program pay no medical premi-
variety of programs that: ums in November and December of
- target specific health risks and focus each year. Beginning in 2010, pre-65
retirees also became eligible for this
on healthy behaviors and personal
incentive.
responsibility
Both Hershey and its employees
- encourage preventive screenings and benefit from this program through
early management of chronic disease lower insurance costs, enhanced
personal health and well-being, and
- provide tools, resources and incentives a healthier workforce.
for participation in health education
and individual health management

Training and Development
At Hershey, we recognize that a highly Valuing Performance, The Hershey Mentoring Program
skilled, motivated workforce is a fun- Living Our Values
damental competitive advantage, and In 2006, the Hershey’s Women’s Council affinity
All salaried employees have annual perfor-
we encourage Hershey employees to group created an internal mentoring program
mance reviews. In 2009, we launched an that matches employees with mentors to help
develop both professionally and person-
enhanced performance management sys- employees develop and achieve career and
ally through a variety of training and
tem as part of the annual review process. personal growth goals.
development opportunities. In our own
Designed to drive employee engagement In its first year, 83 mentor-protégé pairs par-
Hershey University educational program,
and ensure accountability, this system ticipated in the program. In 2010, participation
the curriculum is tailored to our evolving
rewards employees not only for business has grown by 40 percent, and much of that
business environment. Offerings include
results and strategy implementation, but growth has come with the expansion of the
both classroom instruction and online
also for exemplifying our corporate values program to the U.S. field sales force.
courses. In addition, when specifically
of Making a Difference, Open to Possibili-
relevant to their jobs, employees may be
ties, Growing Together and One Hershey.
entitled to tuition reimbursement for as-
Personal growth plans are also included Our Values
sociate’s, bachelor’s and master’s degrees
in the performance management system
at accredited institutions.
to help employees identify their own per-
sonal and professional goals and opportu-
nities for development.
Open to
The strategic bonus goals for individuals
are linked to the company’s strategic plan.
Possibilities
Employees with responsibility for CSR
strategy or programs are assessed on their
achievement of their CSR-related goals. Growing Together
The new performance management
system makes it clear to employees how Making a
Difference
their personal efforts and achievements
contribute to the company’s success—and
that they are rewarded accordingly. In
2010, we implemented a software system
that automates the tracking and recording
of our employees’ performance. One Hershey
Our performance management
system includes an assessment of
all salaried employees’ adherence
to our values.

Diversity and Inclusion
Asian Affinity Group African American Hispanic Affinity Network of Young PRISM The Women’s Council Sales Diversity Council
Diversity Councils
Fosters recognition Affinity Group Group Professionals Serves as a resource Promotes and Promotes advance-
and Affinity Groups
of the cultures, Builds an environ- Fosters a culture Serves the needs of for gay, lesbian, facilitates positive ments in diversity
at Hershey values, and consumer ment where African of diversity and young professionals bisexual and change around and inclusion by
and business insights American employees inclusion in all by providing transgender employ- women’s issues advising and
of Asian employees; are included, aspects of the valuable networking ees and an alliance through enhanced educating across
champions the supported and business through and educational for all employees networking and all levels of the
growth and success challenged to education, commu- opportunities while dedicated to development sales organization
of Asian employees. maximize their nity service and promoting diversity improving the opportunities, work/ with the goal of
professional and social interaction within the company quality of our work life integration enhancing individual
personal potential. among our Hispanic and giving back to environment. programs and and company
employees. the community. education for all performance.
employees.
Hershey’s expansion has brought an supports the overall culture. The strategy and growing in the workplace and the - Many diversity-oriented programs,
increase in the diversity of our workforce. accomplishes these objectives by fostering community. Examples include: professional organizations, professional
As a global company, we understand a deeper understanding of varying view- volunteerism and community service
that the dynamic diversity of thought, points and lifestyles among our employ- - An internal website to provide employ- activities such as youth mentoring
perspectives and backgrounds repre- ees, consumers, customers and suppliers. ees with information about diversity programs
sented by our employees is a source issues and opportunities; such as the
of energy, creativity and innovative Diversity-Oriented Programs Human Rights Campaign, National - An annual “Inclusion Day,” held in Her-
problem-solving that is essential to our and Events Black MBA Association, Hispanic Heri- shey, Pennsylvania, with employees and
success. We want to attract and develop tage Foundation and more their families and friends, to celebrate
Diversity is essential to maintaining our the diversity of our workforce and our
individuals who wish to excel person- high-performance culture. To support, ex- - A number of diversity councils and af- local communities
ally and professionally and who share pand and celebrate diversity, we sponsor finity groups to support employees and
our commitment to high standards of various programs and events that engage provide a range of perspectives and re- For a discussion of Hershey’s supplier
ethics and performance. We also want employees in learning about diversity in sources that enable us to compete more diversity program, please see the Market-
to engage individuals who have a diverse the workplace and the community. These effectively in the global marketplace place section of this report.
range of experiences and perspectives. activities grant us invaluable opportunities
- “Lunch and Learn” programs featuring
Toward this end, we are developing and in to better understand the cultures, lan-
speakers on a range of diversity-themed
the coming years will leverage a diversity guages and tastes of our diverse consum-
topics, from “Insights into the Ethnic
and inclusion strategy that encourages ers. We provide a number of opportuni-
Markets” to “Personal Empowerment
high performance within teams and ties to engage our employees in learning
for Persons of Color and Women”

Looking Ahead We strive to provide a dynamic and challenging workplace that
gives employees the opportunity to develop their skills and tal-
ents. Hershey’s continued business success depends on an en-
gaged workforce that is able to meet the challenges of a rapidly
changing global marketplace. Our unique heritage, strong core
values and legacy of living up to the highest ethical standards
enable Hershey to attract and retain highly talented employees.
Workplace: Our Progress
Safety and Wellness at Work ●●●● ●●● ●●●●●
Openness and Inclusiveness ●●● ● ●●
Employee Value Proposition ●●● ●● ●●●●
Priorities Workplace
Targets
Continue to achieve top-tier perfor- ontinue to achieve top-tier safety

C
mance in workplace safety performance, as measured by:
Promote employee health and welfare - Total Recordable Incident Rate
through investments in progressive - Lost Workday Incident Rate
wellness programs - No work-related fatalities
Foster greater openness and inclusion by Redefine our diversity program to further
establishing and communicating diversity build an inclusive environment that reflects
performance metrics and increasing the diversity of our consumers and the
funding for diversity affinity groups markets in which we operate
Cultivate a highly engaging workplace Measure employee engagement and
where employees from a variety of address insights
perspectives and backgrounds are provided
an opportunity to contribute and are
recognized with a competitive Total
Rewards package

Community Milton Hershey not only transformed the
business of making chocolate; he also established
an enduring model of responsible community
Hershsey employees stewardship. At The Hershey Company, we
volunteering for
Habitat for Humanity. carry on his commitment to making a positive
difference in the communities where we live,
work, and do business.
42
42 The Hershey Company Corporate
The Hershey
Social
Company
Responsibility
Corporate report
Social2009
Responsibility
report 2009

The core of our community efforts is “Going to MHS has had a tremendous impact
the well-being of children, especially
on me; I know it opened so many doors
those at risk. We donate money and
products to a variety of other worthy in my life. My desire to help others stems from
causes and non-profit organizations in my being helped by MHS. I know I wouldn’t
health and human services, education, be a lawyer, and may not even be alive today if
civic and community programs, arts and
it weren’t for MHS.”
culture and the environment. Hershey
employees and retirees are active part- — Robert Connor Heist, lawyer, Class of 1982
ners in our community efforts, volunteer-
ing their time and giving generously.
Milton Hershey School and Project Fellowship

The school currently The Milton Hershey
enrolls more than Nearly 8,800 students School is connected
1,800 disadvan- have graduated with The Hershey
taged children of all from the school. Not Company through the
backgrounds from only have their lives Hershey Trust Compa-
pre-kindergarten been changed; they ny, as well as through
through 12th grade. have also gone on to the engagement of
Over the last several change the lives of our employees as
years, 75 percent of others. According to mentors to children
the students have a 2009 impact assess- at the school. One
come from homes at ment survey of recent formal expression of
or below the poverty graduates, over 98 this connection is our
level. Over 40% of percent are currently Project Fellowship,
the students have a employed. In fact, which pairs company
brother or sister at the respondents employees with Mil-
The Milton Hershey the school, and the have created some ton Hershey School
School (MHS), student body has an 17,000 jobs in their student homes in fun,
founded in 1909 by even distribution of own businesses. They rewarding relation-
Milton and Catherine male and female stu- give nearly 1.5 times ships. The mission of
Hershey and adminis- dents. Every student more to charitable Project Fellowship is
tered by Hershey receives housing, organizations than to build a bridge and
Trust Company, our food, clothing, medi- the average American foster a sense of con-
largest shareholder, cal and psychological household, and they nection and commu-
stands as the services, recreational dedicate, on average, nity between Milton
enduring legacy of opportunities and 23 percent more time Hershey School
Mr. Hershey’s vision education—all free to volunteering than students and Hershey
and generosity. of charge. the national average. employees.

We have maintained a strong focus “It is a very heart-warming, ful- “I volunteered at the Alzheimer’s “The team has coordinated the
on the communities where we live filling service. We bring comfort Association and the Laughter company’s program over the past
and work for more than a century.
This commitment has enabled us to build and hope to parents of children Remedy event. I was so excited several years and we are proud of
partnerships in these communities that in the Hershey Medical Center.” to be a part of the solution for Hershey’s outstanding contribu-
promote social and economic develop- — Nancy Kinsey something that has afflicted my tion to making a difference in the
ment and directly benefit the lives of our Employee Store life and family for as long as I community. We plan on expand-
employees and their families. In turn, our Hershey, Pennsylvania
employees embrace volunteer opportuni- can remember.” ing the program to include all
ties; we have asked employees who par- — Jessica Gerstner major Hershey locations globally.
ticipate in the Dollars for Doers Program Retail Sales Our goal is to volunteer enough
and in Project Fellowship to share their Smyrna, Tennessee
hours in these locations to build
perspectives on volunteering.
“I’ve learned that volunteers a house. We believe this is in
are needed, and (there) never harmony with Milton Hershey’s
seems to be enough. I am vision of helping people that want
happy to help my community “Everyone from our office who vis- to help themselves.”
and give my time.” its our Project Fellowship home — Scott Crowell
— Susan Craig
at Milton Hershey School comes Director, Information Services
Hershey, Pennsylvania
Production back and thanks me for making Founder and leader of Hershey
19 East Chocolate Avenue Plant
the arrangements - they are in- Habitat for Humanity
spired when they return to work.”

— Beth Dandridge
Logistics Planner
Mississauga, Ontario, Canada
Coordinator for Project Fellowship
“I am the leader of a Boy Scout
“… success in life is what at Hershey Canada’s head office troop. I work with youth from
you do for others, being aware ages 11-18, helping them learn,
of the needs of others and grow, and have some fun. I have
doing something about it.” had the pleasure of watch-
ing many of the boys mature
— April Burgess
Retail Sales through the years as they work
Sarnia, Ontario, Canada their way to Eagle Scout.”
— Peter J. Howland
Business Process Manager,
Information Services

Contributing to Communities
Corporate Giving Corporate and Employee Giving: Total Giving in 2009
During 2009, The Hershey Company’s Two Special Partnerships Total monetary donations $4,045,251
contributions in cash and products totaled Total product donation value $7,955,322
The Hershey Company facilitates em-
more than $12 million, about $1,000 Total company donation value $12,000,573
ployee giving through alliances with
per employee. This is consistent with the two prominent charitable organizations:
industry average for the food, beverage United Way and Children’s Miracle Net-
and tobacco category. The graphics at work. Giving by Program Area in 2009*
right detail the types of contributions and
where the funds are allocated. Hershey has a longstanding relationship 40% Local Causes in The Hershey
Company Communities
with United Way, whose mission is to
We enable the contribution of expertise to address the needs of local communi- 16% West Africa Support**
education, community development efforts ties by improving access to health care, 13% United Way
and nonprofit organizations. This includes: promoting self-sufficiency and strength- Gift Matching
ening families in the United States and 12% Multi-year
- providing technical support and exper- Committed Pledges
abroad. In 2009, Hershey, our employees
tise to organizations such as the World
and retirees contributed a combined
Cocoa Foundation and the United
$1.5 million to this organization, which
States Food and Drug Administration 9% Product Donation Value
in turn helped hundreds of agencies and of Corporate Contributions
- providing laboratory services and organizations. We also have contributed
7% Matching Gifts Program
support for projects such as Ghana Fine funding for global disaster relief through
Flavors for the Gates Foundation United Way International. 3% Hershey Scholars Program
- developing and delivering education Since 1989, we have been working with <1% Dollars for Doers
programs in the community such as a Children’s Miracle Network, a non- *Corporate monetary and product donations only.
chemistry program for high school profit alliance of children’s hospitals dedi- **Note: Africa support does not include membership dues to
orginazitions working to benefit cocoa growing families in Africa.
seniors at Milton Hershey School and cated to providing state-of-the-art care,
through Junior Achievement in local life-saving research and preventative
schools education across North America. During
2009, Hershey and its employees collec- Giving by Program Type in 2009*
We have set a goal to track the contribu-
tively donated $173,625 to this organi- 57% Health and
tion of employee expertise in the com-
zation, $123,625 of which came from Human Services
munity and for global initiatives starting
employee fundraising efforts. Together, 26% Education
in 2011.
Hershey employees and retirees have
raised more than $3.2 million over two
decades in support of Children’s Miracle
Network.
10% Civic and
Community
4% Arts and Culture
3% Environment
*Corporate monetary and product donations only.


Helping Hershey is committed to the communi- In Elsie Gaches Village in the Muntin-
Hershey ties where we operate around the world. lupa community near our Hershey Philip-
Communities pines office, we funded the creation of a
In Mexico, we supported the establish-
Abroad therapeutic garden at an orphanage for
ment of a children’s burn center in 2003. children with special needs. Such gar-
The first of its kind in the region, O.P.D. dens are of vital cultural importance for
Hospital Civil de Guadalajara is located personal growth and development. This
near our El Salto facility. Severe burns garden is designed to provide a healing
among children in this region are very and relaxing environment for therapy
common due to the practice of open- sessions. The garden was completed in
fire cooking. The center provides critical, 2008, and its maintenance and enhance- Helping Cocoa Farming
often life-saving care to approximately ment are an ongoing commitment of Communities
200 low-income children each year. The Hershey Philippines employees. In 2009, We have a special interest in helping
children would not otherwise receive Hershey funded the Hershey’s Pure Water the cocoa-farming communities of
such treatment. The center has signifi- Refilling station, built to provide safe and West Africa, Asia and the Americas.
cantly decreased the childhood mortal- pure drinking water to the residents of In addition to our efforts to improve
ity rate in this region. Hershey helps to Elsie Gaches Village. farming practices and increase farm
fund the burn center’s ongoing opera- income (discussed in the Marketplace
tions through our United Way Mexico section of this report), Hershey makes
campaign through generous employee substantial donations of financial
contributions and a company match. support, expertise 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
Christmas party at
Elsie Gaches Village
regions. We underwrite teacher
in the Philippines. training in West Africa, expanding
access to education and opportunity
for tens of thousands of farmers
and their families. Hershey also
funds Family Health International’s
efforts to address malaria, one of
the major causes of death among
young children in Africa.

Volunteerism: Hershey Employees Making a Difference
Hershey employees and retirees are We also encourage our employees to
Civic and Community:
active volunteers in their communities, engage with the community through
Supporting Our Troops
where they support a variety of causes, participation in leadership positions in
organizations, and activities ranging organizations that promote social and The Hershey Company is proud of
from education, food banks, United Way economic development. For example, our product donations to the U.S.
partner agencies, scouting, sports and employees hold leadership positions on military. Our donation program
the environment. They participate in a the Hershey Community Task Force, the enables employees to send a case
broad variety of capacities: as fundrais- Downtown Hershey Development Team Boy Scouts of America of Hershey products appropriate to
the culture and climate where their
ers, board members, coaches, mentors, and local chapters of United Way.
loved ones are serving overseas.
and helpers.
In response to employee requests
To encourage and recognize such volun- received since 2002, Hershey has
teerism, we started a “Dollars for Doers” donated more than 1,500 cases of
products directly to those serving in
program at Hershey in 2009. Through this
the U.S. military.
program, we donated $250 to any eligible
charity designated by an employee who
volunteers. To increase participation in this
program, we decreased the number of
hours required to qualify for the donation
from 100 in 2009 to 50 in 2010.

Looking Ahead We have made a positive impact in our communities
for more than 100 years. Our marketplace success
makes this investment possible. As our company
evolves and grows, we will continue to build on our
heritage of making a difference in the communities
where we live and work.
Community: Our Progress
Corporate Philanthropy ●●● ● ●●
Contribution of Expertise ●●●● ● ●●●
Employee Giving and Volunteerism ●●●● ●●● ●●●
Community
Priorities Targets
Continue to strengthen Hershey Provide corporate and local philan- Expand employee engagement by the
philanthropy programs by encouraging thropic funding to all countries where North American Sales team through the
our partners to achieve measurable, we have operations by 2012 CSR Sales Advocate program by increasing
targeted outcomes and by increasing our participation in events in their communi-
Develop and implement a system to
total year-over-year giving ties (for example, United Way, Hershey’s
track the contribution of employee Track & Field Games and other non-
Contribute the expertise of Hershey expertise in the community by the end profit organizations) to 100 events per
employees around the world to expand of 2011 year by 2011
our involvement in the community and in
Increase the number of Project Fellow-
local business initiatives by setting Increase participation in the Dollars
ship household partnerships matched to
specific activity targets that align with for Doers program by 20% from 2009
Milton Hershey School student homes by
our strategic business objectives to 2012
20% from 2009 to 2011
Increase employee volunteerism and

direct giving by enhancing internal
communications programs that create
awareness of organizations in need and of
company volunteerism and giving policies

Additional Information
Awards 49 Awards and Recognition
Alliances 50 Hershey is proud to be recognized for its
CSR efforts:
Learn more about Hershey 53 eceived the 2010 Distribution Business Management
R
Association’s “Circle of Excellence” Award. The award
Global Reporting Initiative is presented to a company that represents the highest
(GRI) Content Index 54 standards of quality and technology and has an environ-
mentally responsible supply chain model.
ershey Mexico received an award in 2010 as a “Socially
H
Responsible Company” from the Mexican Center for
Philanthropy (CEMEFI).
ershey Mexico also received the Environmental Protec-
H
tion and Natural Resources of Mexico CSR Recogni-
tion in 2010.
Received United Way’s Pillar Award for both
corporate giving and employee contributions in excess
of $100,000 to the 2009 United Way Capital Region
annual campaign.
nited Way’s Reaching New Heights Award presented
U
to Hershey’s Stuarts Draft Plant for the largest increase in
monetary donations (25 percent over the prior year) in our
United Way campaign.
The National Black MBA Association of Harrisburg
recognized The Hershey Company as Corporate Partner
of the Year for the Association’s 1st Annual Leaders of
Circle of Excellence Award. Tomorrow Scholarship.

Hershey Alliances
Grocery Manufacturing Council of the Better Business Athletics Canada
Association (GMA) Bureau (CBBB) www.athletics.ca
www.gmabrands.com http://www.bbb.org/us/children-food-
Hershey has partnered with Athletics
beverage-advertising-initiative/
The Hershey Company is a longstanding Canada for more than 10 years to help
supporter of GMA, the association of Hershey is a supporter of the CBBB’s promote Hershey’s Track & Field Games
food, beverage and consumer products Children’s Advertising Review Unit and throughout Canada. As the national
companies. The association focuses on participates in the CBBB’s Children’s Food sport-governing body for track and field,
consumer confidence, customer and and Beverage Advertising Initiative. The including cross-country running and
channel collaboration, international focus of the initiative is to foster truth road running, Athletics Canada supports
policy, health and wellness. and accuracy in national advertising high-performance athletics excellence at
through voluntary self-regulation. the world level and provides leadership in
National Confectioners developmental athletics.
Association (NCA) Healthy Weight Commitment
www.candyusa.com Foundation National Association for Sport
www.healthyweightcommit.org and Physical Education (NASPE)
NCA is the major association repre- www.aahperd.org/naspe/
senting the confection industry in the Hershey is a founding member of the
United States. It provides education and foundation, which promotes ways to NASPE’s mission is to enhance knowl-
leadership in manufacturing, technical help Americans achieve healthy weights edge, improve professional practice, and
research, public relations, retailing prac- by balancing the calories they consume increase support for high-quality physi-
tices, government relations and statisti- with the energy they expend through cal education, sport and physical activity
cal analysis. Through NCA, Hershey is a physical activity. programs. The Association envisions a
member of the Global Issues Group. society in which all individuals are physi-
National Recreation & Park cally educated and participate in lifelong
Food & Consumer Products Association (NRPA) physical activity. Hershey partners with
of Canada (FCPC) www.nrpa.org NASPE to increase education about
http://www.fcpmc.com/ physical activity within the American
In the United States, the Hershey’s Track school systems and to further awareness
Hershey is a member of the FCPC, a & Field Games local, state and regional of Hershey’s Track & Field Games.
national industry association in Canada track meets are often held on National
representing the food and consumer Recreation & Park Association property,
products industry. The association which helps participants become aware
represents member companies ranging of the need to preserve and protect out-
from small independently and privately door spaces.
owned companies to large, global
multinationals, all of whom manufacture
and distribute in Canada.

Association des Industries de International Cocoa World Cocoa Foundation (WCF)
Marque¬(AIM) (The European Initiative (ICI) www.worldcocoafoundation.org
Brands Association) PROGRESS www.cocoainitiative.org
Hershey is one of two founding members
Initiative
Through the ICI, The Hershey Company of the WCF. Today, along with nearly 70
www.aim.be
and other industry leaders have joined other chocolate and cocoa companies
In 2006, The Hershey Company joined with labor unions, key nongovernmental from around the world, we actively
other food and beverage companies organizations (NGOs) and labor activists support the WCF and its efforts to
to participate in AIM-PROGRESS, the to raise farm family and community improve cocoa sustainability.
European Brands Association’s program awareness of the need for responsible
for responsible sourcing. This initiative labor practices; to promote and ensure Bill and Melinda Gates
is developing effective responsible opportunities for youth education; to Foundation International Institute for
sourcing programs focused on work- build critical local skills and services; and www.gatesfoundation.org Tropical Agriculture/Sustainable
place health and safety, labor standards, to take appropriate action when children With the Bill and Melinda Gates Tree Crops Program
business integrity and environmental are being exploited. ICI programs have Foundation, Hershey and industry peers www.iita.org
management practices. reached over 800,000 community are investing in the $40 million, five-year The Sustainable Tree Crops Program
members in more than 250 West African West Africa Cocoa Livelihoods Program,
The National Minority Supplier (STCP) is administered by the Interna-
cocoa farming communities. which seeks to change cocoa growing
Development Council (NMSDC) tional Institute of Tropical Agriculture
from subsistence farming to socially and through funding from World Cocoa
www.nmsdcus.org Empowering Cocoa Households
economically sustainable farming by Foundation members, USAID, and West
with Opportunities and Educa-
The NMSDC provides a direct link improving farmers’ production methods, African governments. It helps West
tion Solutions Program
between corporate America and minori- market access, and business skills. African farmers realize higher prices for
(ECHOES)
ty-owned businesses in order to increase their cocoa harvests by selling collectively,
www.worldcocoafoundation.org/
procurement and business opportunities
what-we-do/current-programs/ Family Health International (FHI) and educates farming communities
for minority businesses of all sizes. www.fhi.org about best practices for safe, responsible
ECHOES_summary.asp
Hershey has been a member since 2004. labor. The Farmer Field School Program, a
Through a partnership with FHI, a global
In partnership with other supporters, we part of STCP, teaches cocoa farmers how
health and development organization,
are providing a multiyear grant to to increase productivity, reduce crop loss
we’re funding a program to protect
ECHOES so that it can implement a and diversify the crops they grow. More
individuals in the Ivory Coast from
variety of programs to create educational than 76,000 farmers have participated in
malaria—one of the world’s leading
and training opportunities for West STCP programs thus far.
causes of death among young children in
African youth and young adults.
developing countries.

Children’s Miracle Network United Way China Youth Development Partners in Volunteering
(CMN) www.liveunited.org Foundation (CYD)
www.childrensmiraclenetwork.org www.cydf.org.cn Our employees contribute their
The United Way is dedicated to address- time and expertise to more than
We have a 21-year relationship with ing the needs of local communities, In May 2009, The Hershey Company, 25 international, national, and
CMN, a nonprofit organization dedicated with a focus on improving access to United Way International, and the China local nonprofit organizations in
to raising funds for children’s hospitals healthcare, promoting self-sufficiency Youth Development Foundation together their communities. Some employ-
across North America. Since 1989, and strengthening families. Through funded the reconstruction of a school ees complete administrative tasks;
Hershey employees and retirees have The Hershey Company’s long-estab- library in Sichuan, China, that was de- others provide services to the
raised $3.2 million to support CMN, lished relationship with United Way’s stroyed during the 2008 earthquake. organizations’ beneficiaries, such as
including more than $170,000 in 2009. Pennsylvania chapters, we engage in mentoring kids and helping to build
In addition, Hershey employees serve a variety of fundraising and volunteer Elsie Gaches Village homes; and several employees serve
www.ncr.dswd.gov.ph/index. on organizations’ executive boards.
on its executive board. efforts. Hershey’s combined company,
We encourage these efforts by mak-
employee, and retiree contribution of php?option=com_content&view=artic
In 2009, The Hershey Company pledged ing monetary and in-kind donations
approximately $1.5 million in 2009 le&id=76&Itemid=81
to give an additional $1 million to the to organizations where employ-
children’s hospital in Hershey, Pennsylva- helped hundreds of United Way agen- Hershey has formed a partnership with ees volunteer. In 2009, Hershey
nia, over the ensuing five years. cies and organizations in the communi- Elsie Gaches Village, an orphanage employees served on the boards
ties where our employees live and work for children with special needs in the and provided direct services at the
in the United States and internationally. Muntinlupa community near our Hershey following organizations, among
In addition to raising money, 20 Hershey many others:
Philippines office. In 2008, we funded
employees who serve on United Way the creation of a therapeutic garden for - Boy Scouts & Girl Scouts of America
Allocations Panels help to determine the children, and we donated a water - Junior Achievement
which program partners receive fund- purification station to the Village in 2009. - Ronald McDonald House Charities
ing. Hershey occupies board member of Central Pennsylvania
seats in the Capital Region, Lancaster
- Students in Free Enterprise (SIFE)
County, Greater Hazelton and Lebanon,
- The Second Mile
Pennsylvania, United Way chapters.

Learn More About The Hershey Company and others:
The Hershey Company, Hershey Archives The Hershey Trust

Corporate Information www.hersheyarchives.org www.hersheytrust.com
www.thehersheycompany.com
Derry Township Historical Society Milton Hershey School
The Hershey Company, www.hersheyhistory.org www.mhs-pa.org
Consumer & Product Information
The Penn State, Milton S. Hershey Hershey Center for Health
www.hersheys.com
Medical Center and Nutrition
The Hershey Company, www.pennstatehershey.org/home www.hersheys.com/nutrition-
Corporate Social Responsibility professionals/
www.thehersheycompany.com/
social-responsibility

Global Reporting Initiative (GRI) Content Index  = fully addressed |  = partially addressed |  = not addressed
1. Strategy and Analysis

PROFILE PROFILE
DISCLOSURE DESCRIPTION COVERAGE REFERENCE DISCLOSURE DESCRIPTION COVERAGE REFERENCE
1.1 Statement from the most senior decision-maker of the  pg. 3 3.8 Basis for reporting on joint ventures, subsidiaries, leased  pg. 2
organization facilities, outsourced operations, and other entities that
can significantly affect comparability from period to period
1.2 Description of key impacts, risks, and opportunities.  pgs. 10-12 and/or between organizations.
2. Organizational Profile 3.9 Data measurement techniques and the bases of calcula- 
2.1 Name of the organization.  pg. 4 tions, including assumptions and techniques underlying
estimations applied to the compilation of the Indicators
2.2 Primary brands, products, and/or services.  pg. 4 and other information in the report. Explain any
decisions not to apply, or to substantially diverge from,
2.3 Operational structure of the organization, including  pgs. 5-6, 17
the GRI Indicator Protocols.
main divisions, operating companies, subsidiaries, and
joint ventures. 3.10 Explanation of the effect of any re-statements of  N/A
information provided in earlier reports, and the reasons
2.4 Location of organization’s headquarters.  pg. 4
for such re-statement (e.g.,mergers/acquisitions,
2.5 Number of countries where the organization operates,  pgs. 5-6, 17, change of base years/periods, nature of business,
and names of countries with either major operations or 20, 21 measurement methods).
that are specifically relevant to the sustainability issues 3.11 Significant changes from previous reporting periods in  N/A
covered in the report.
the scope, boundary, or measurement methods applied
2.6 Nature of ownership and legal form.  pgs. 4, 6, 13, in the report.
17 3.12 Table identifying the location of the Standard Disclosures in  pgs. 54-58
2.7 Markets served (including geographic breakdown,  pgs. 4-5, 12 the report.
sectors served, and types of customers/beneficiaries). 3.13 Policy and current practice with regard to seeking  We are not
2.8 Scale of the reporting organization.  pgs. 4-6 external assurance for the report. seeking
assurance at
2.9 Significant changes during the reporting period  pg. 6 this time.
regarding size, structure, or ownership.
4. Governance, Commitments, and Engagement
2.10 Awards received in the reporting period.  pg. 49
4.1 Governance structure of the organization, including  pgs. 10-11, 13
3. Report Parameters committees under the highest governance body
3.1 Reporting period (e.g., fiscal/calendar year) for information  pg. 2 responsible for specific tasks, such as setting strategy
provided. or organizational oversight.
3.2 Date of most recent previous report (if any).  pg. 2 4.2 Indicate whether the Chair of the highest governance  pg. 13
body is also an executive officer.
3.3 Reporting cycle (annual, biennial, etc.)  pg. 2
4.3 For organizations that have a unitary board structure,  pg. 13
3.4 Contact point for questions regarding the report or its  pg. 2 state the number of members of the highest governance
contents. body that are independent and/or non-executive
3.5 Process for defining report content.  pgs. 2, 10, 12 members.
3.6 Boundary of the report (e.g., countries, divisions,  pg. 2 4.4 Mechanisms for shareholders and employees to provide  pg. 13
subsidiaries, leased facilities, joint ventures, suppliers). recommendations or direction to the highest gover- Website:
See GRI Boundary Protocol for further guidance. nance body. Investor
relations page
3.7 State any specific limitations on the scope or boundary  pgs. 2, 3
of the report (see completeness principle for explana-
tion of scope).

Global Reporting Initiative (GRI) Content Index (continued)
 = fully addressed |  = partially addressed |  = not addressed
PROFILE PROFILE
DISCLOSURE DESCRIPTION COVERAGE REFERENCE DISCLOSURE DESCRIPTION COVERAGE REFERENCE
4.5 Linkage between compensation for members of the  pgs. 9, 39 4.16 Approaches to stakeholder engagement, including  pg. 12
highest governance body, senior managers, and frequency of engagement by type and by stakeholder
executives (including departure arrangements), and the group.
organization’s performance (including social and 4.17 Key topics and concerns that have been raised through  pgs. 20, 22, 30
environmental performance).
stakeholder engagement, and how the organization has
4.6 Processes in place for the highest governance body to  pg. 13 responded to those key topics and concerns, including
ensure conflicts of interest are avoided. through its reporting.
4.7 Process for determining the qualifications and expertise  Economic
of the members of the highest governance body for PERFORMACE
guiding the organization’s strategy on economic, INDICATOR DESCRIPTION COVERAGE REFERENCE
environmental, and social topics.
EC1 Direct economic value generated and distributed,  pgs. 4, 6, 45
4.8 Internally developed statements of mission or values,  pgs. 9-11, 13, including revenues, operating costs, employee compen-
codes of conduct, and principles relevant to economic, 17, 23, 28, sation, donations and other community investments,
environmental, and social performance and the status 39, 40 retained earnings, and payments to capital providers
of their implementation. and governments.
4.9 Procedures of the highest governance body for  pgs. 10-11 EC2 Financial implications and other risks and opportunities 
overseeing the organization’s identification and for the organization’s activities due to climate change.
management of economic, environmental, and social
performance, including relevant risks and opportunities,
EC3 Coverage of the organization’s defined benefit plan 
and adherence or compliance with internationally obligations.
agreed standards, codes of conduct, and principles. EC4 Significant financial assistance received from govern-  We did not
4.10 Processes for evaluating the highest governance body’s  ment. receive
own performance, particularly with respect to economic, government
environmental, and social performance. assistance.
4.11 Explanation of whether and how the precautionary 
EC5 Range of ratios of standard entry level wage compared 
approach or principle is addressed by the organization. to local minimum wage at significant locations of
operation.
4.12 Externally developed economic, environmental, and  pgs. 18, 20,
social charters, principles, or other initiatives to which 21, 23, 50
EC6 Policy, practices, and proportion of spending on  pg. 18
the organization subscribes or endorses. locally-based suppliers at significant locations of
operation.
4.13 Memberships in associations (such as industry  pgs. 12, 20,
associations) and/or national/international advocacy 21, 23, 50-52
EC7 Procedures for local hiring and proportion of senior 
organizations in which the organization: * Has positions management hired from the local community at
in governance bodies; * Participates in projects or significant locations of operation.
committees; * Provides substantive funding beyond EC8 Development and impact of infrastructure investments  pgs. 7, 8, 20,
routine membership dues; or * Views membership as and services provided primarily for public benefit 43, 45, 46
strategic. through commercial, in-kind, or pro bono engagement.
4.14 List of stakeholder groups engaged by the organization.  pg. 12 EC9 Understanding and describing significant indirect  pgs. 8, 13,
4.15 Basis for identification and selection of stakeholders  pg. 12 economic impacts, including the extent of impacts. 19, 20
with whom to engage.

Environmental
PERFORMACE PERFORMACE
INDICATOR DESCRIPTION COVERAGE REFERENCE INDICATOR DESCRIPTION COVERAGE REFERENCE
EN1 Materials used by weight or volume.  EN18 Initiatives to reduce greenhouse gas emissions and  pgs. 26, 27
reductions achieved. Hershey’s
EN2 Percentage of materials used that are recycled input 
materials. Carbon
Disclosure
EN3 Direct energy consumption by primary energy source.  Project
EN4 Indirect energy consumption by primary source.  response
EN5 Energy saved due to conservation and efficiency  pgs. 26, 31

EN19 Emissions of ozone-depleting substances by weight.  No significant
improvements. emissions.
EN6 Initiatives to provide energy-efficient or renewable  pg. 26

EN20 NOx, SOx, and other significant air emissions by type and  In metric tons:
energy based products and services, and reductions in weight. SOx 10.8, NOx
energy requirements as a result of these initiatives. 142.2, VOCs
94.3, HAPs
EN7 Initiatives to reduce indirect energy consumption and  4.8, PM10
reductions achieved. 59.5, CO 138.6
EN8 Total water withdrawal by source.  EN21 Total water discharge by quality and destination.  pg. 29
EN9 Water sources significantly affected by withdrawal of  EN22 Total weight of waste by type and disposal method. 
water.
EN23 Total number and volume of significant spills.  pg. 29
EN10 Percentage and total volume of water recycled and  pg. 29
reused.
EN24 Weight of transported, imported, exported, or treated 
waste deemed hazardous under the terms of the Basel
EN11 Location and size of land owned, leased, managed in, or  pg. 30 Convention Annex I, II, III, and VIII, and percentage of
adjacent to, protected areas and areas of high biodiver- transported waste shipped internationally.
sity value outside protected areas.
EN25 Identity, size, protected status, and biodiversity value of 
EN12 Description of significant impacts of activities, products,  pg. 30 water bodies and related habitats significantly affected
and services on biodiversity in protected areas and by the reporting organization’s discharges of water and
areas of high biodiversity value outside protected areas. runoff.
EN13 Habitats protected or restored.  pg. 30 EN26 Initiatives to mitigate environmental impacts of products  pgs. 26,28,30
and services, and extent of impact mitigation.
EN14 Strategies, current actions, and future plans for  pg. 30
managing impacts on biodiversity. EN27 Percentage of products sold and their packaging 
materials that are reclaimed by category.
EN15 Number of IUCN Red List species and national  None
conservation list species with habitats in areas affected EN28 Monetary value of significant fines and total number of  USD800
by operations, by level of extinction risk. non-
monetary sanctions for non-compliance with environ-
EN16 Total direct and indirect greenhouse gas emissions by  Hershey’s
mental laws and regulations.
weight. Carbon
Disclosure EN29 Significant environmental impacts of transporting 
Project products and other goods and materials used for the
response organization’s operations, and transporting members of
the workforce.
EN17 Other relevant indirect greenhouse gas emissions by 
weight. EN30 Total environmental protection expenditures and invest- 
ments by type.

Social: Labor Practices and Decent Work

LA1 Total workforce by employment type, employment contract,  pg. 34 LA13 Composition of governance bodies and breakdown of  The board
and region. employees per category according to gender, age group, of directors
minority group membership, and other indicators of includes one
LA2 Total number and rate of employee turnover by age  diversity. woman and
group, gender, and region. one African-
LA3 Benefits provided to full-time employees that are not  pgs. 36, 38 American.
provided to temporary or part-time employees, by major LA14 Ratio of basic salary of men to women by employee 
operations. category.
LA4 Percentage of employees covered by collective bargaining  Approximately
agreements. 35 percent Social: Human Rights
of our HR1 Percentage and total number of significant investment 
employees agreements that include human rights clauses or that
worldwide are have undergone human rights screening.
represented
by unions. HR2 Percentage of significant suppliers and contractors that 
have undergone screening on human rights and actions
LA5 Minimum notice period(s) regarding significant opera-  taken.
tional changes, including whether it is specified in
collective agreements. HR3 Total hours of employee training on policies and 
procedures concerning aspects of human rights that are
LA6 Percentage of total workforce represented in formal  relevant to operations, including the percentage of
joint management-worker health and safety committees employees trained.
that help monitor and advise on occupational health and
safety programs. HR4 Total number of incidents of discrimination and actions 
taken.
LA7 Rates of injury, occupational diseases, lost days, and  pg. 37
absenteeism, and number of work-related fatalities by HR5 Operations identified in which the right to exercise  pgs. 20, 21, 30
region. freedom of association and collective bargaining may be
at significant risk, and actions taken to support these
LA8 Education, training, counseling, prevention, and  pg. 38 rights.
risk-control programs in place to assist workforce
members, their families, or community members HR6 Operations identified as having significant risk for incidents of  pgs. 8, 18, 20,
regarding serious diseases. child labor, and measures taken to contribute to the 21, 30
elimination of child labor.
LA9 Health and safety topics covered in formal agreements 
with HR7 Operations identified as having significant risk for  pgs. 8, 18, 20,
trade unions. incidents of forced or compulsory labor, and measures 21, 30
to contribute to the elimination of forced or compulsory
LA10 Average hours of training per year per employee by  labor.
employee category.
HR8 Percentage of security personnel trained in the 
LA11 Programs for skills management and lifelong learning  pg. 39 organization’s policies or procedures concerning
that support the continued employability of employees aspects of human rights that are relevant to operations.
and assist them in managing career endings.
HR9 Total number of incidents of violations involving rights of  pg. 26
LA12 Percentage of employees receiving regular performance  pg. 39 indigenous people and actions taken.
and career development reviews.

Social: Society
SO1 Nature, scope, and effectiveness of any programs and  PR6 Programs for adherence to laws, standards, and  pg. 23
practices that assess and manage the impacts of voluntary codes related to marketing communications,
operations on communities, including entering, including advertising, promotion, and sponsorship.
operating, and exiting. PR7 Total number of incidents of non-compliance with 
SO2 Percentage and total number of business units analyzed  regulations and voluntary codes concerning marketing
for risks related to corruption. communications, including advertising, promotion, and
sponsorship by type of outcomes.
SO3 Percentage of employees trained in organization’s  pg. 13
anti-corruption policies and procedures. PR8 Total number of substantiated complaints regarding 
breaches of customer privacy and losses of customer
SO4 Actions taken in response to incidents of corruption.  data.
SO5 Public policy positions and participation in public policy  PR9 Monetary value of significant fines for non-compliance with  pg. 22
development and lobbying. laws and regulations concerning the provision and use of
SO6 Total value of financial and in-kind contributions to  products and services.
political parties, politicians, and related institutions by
country.
SO7 Total number of legal actions for anti-competitive 
behavior, anti-trust, and monopoly practices and their
outcomes.
SO8 Monetary value of significant fines and total number of 
non-monetary sanctions for non-compliance with laws
and regulations.
Social: Product Responsibility
PR1 Life cycle stages in which health and safety impacts of  pgs. 16, 17,
products and services are assessed for improvement, and 18, 22, 30
percentage of significant products and services categories
subject to such procedures.
PR2 Total number of incidents of non-compliance with 
regulations and voluntary codes concerning health and
safety impacts of products and services during their life
cycle, by type of outcomes.
PR3 Type of product and service information required by 
procedures, and percentage of significant products and
services subject to such information requirements.
PR4 Total number of incidents of non-compliance with  pg. 22
regulations and voluntary codes concerning product and
service information and labeling, by type of outcomes.
PR5 Practices related to customer satisfaction, including  pgs. 12, 24
results of surveys measuring customer satisfaction.

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The Hershey Company Corporate Social Responsibility report 2009

The Hershey Company Corporate Social Responsibility report 2009

53 Learn More about Hershey

“One is only happy in proportion as he makes

1 The Hershey Company Corporate Social Responsibility report 2009

> You can find additional information about

2 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

3 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

> For more detailed prod-

4 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

The amounts exclude business realignment and impairment charges.

Refer to the Community section for details.

6 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

“When I got my diploma from Mr. Hershey he

7 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

8 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

Bringing sweet moments

9 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

Hershey’s CSR Framework Environment Community Marketplace Workplace

10 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

CSR is a company-wide, strategic priority

Continuous Innovation Public Affairs

11 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

Investors Communities and Regulators

12 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

13 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

Bringing sweet moments

15 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

We work continuously to strengthen

16 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

17 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

18 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

19 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

20 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

21 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

New recipes are developed

22 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

23 The Hershey Company Corporate Social Responsibility report 2009

/ ContentS / Profile/Strategy / Marketplace / Environment / Workplace / Community / Learn more

Marketplace: Our Progress

“One is only happy in proportion as he makes

> You can find additional information about

> For more detailed prod-

The amounts exclude business realignment and impairment charges.

“When I got my diploma from Mr. Hershey he

*Scope: U.S. manufacturing plants and distribution centers

Continue to achieve top-tier perfor- ontinue to achieve top-tier safety