Meet the Board of Directors of Hershey

When it comes to the success of a company, the skills and leadership of its board of directors play a critical role. The Hershey Company, one of the world's largest chocolate manufacturers, is no exception. In this article, we will delve into the details of the Hershey board of directors, exploring their history, role, key members, selection process, diversity initiatives, performance assessment and evaluation practices, impact on the company's growth, future plans, challenges, public perception, and more.

Introduction to Hershey's Board of Directors

The Hershey board of directors is responsible for overseeing and guiding the company's strategic direction, performance, and risk management. The board comprises 12 members, including the company's CEO, as well as independent directors with diverse backgrounds and expertise. Hershey's board meets periodically throughout the year to discuss and review the company's operations, financials, and strategic plans.

One of the key responsibilities of Hershey's board of directors is to ensure that the company operates in an ethical and socially responsible manner. This includes overseeing the company's sustainability initiatives, such as reducing its environmental impact and promoting fair labor practices throughout its supply chain. The board also plays a role in shaping Hershey's corporate social responsibility policies and initiatives, which aim to make a positive impact on the communities where the company operates.

History and Evolution of Hershey's Board of Directors

The Hershey board of directors has undergone several changes over the years, reflecting the company's growth and evolving business environment. In its early days, the Hershey board was relatively small and consisted mostly of company executives and family members. However, as Hershey's business expanded and became more complex, the board became more diverse, with independent directors representing different industries and perspectives.

One significant change to the Hershey board of directors occurred in 2002, when the company faced a major scandal involving allegations of financial impropriety by its CEO. As a result, the board underwent a complete overhaul, with several new independent directors appointed to restore trust and transparency to the company's leadership.

Today, the Hershey board of directors is composed of 13 members, including the CEO and several independent directors with backgrounds in finance, marketing, and other relevant fields. The board is responsible for overseeing the company's strategic direction, financial performance, and corporate governance, and plays a critical role in ensuring that Hershey continues to thrive and innovate in the highly competitive global confectionery market.

The Role and Responsibilities of Hershey's Board of Directors

As mentioned earlier, the Hershey board of directors has several key responsibilities, including:

• Setting and overseeing the company's strategic direction and goals
• Reviewing and approving the company's annual budget and business plans
• Ensuring the company's financial performance and risk management
• Overseeing the selection and evaluation of the company's senior leadership team, including the CEO
• Leading and overseeing the company's corporate governance practices

In addition to these responsibilities, the Hershey board of directors also plays a crucial role in ensuring the company's social and environmental impact is positive. This includes overseeing the company's sustainability initiatives, such as reducing greenhouse gas emissions and promoting responsible sourcing of ingredients. The board also ensures that Hershey's business practices align with ethical standards and values, such as fair labor practices and community engagement.

Key Members of Hershey's Board of Directors

The Hershey board of directors comprises 12 members, each of whom brings unique skills and experience to the table. Some of the current key members of the Hershey board are:

• Charles A. Davis, the company's CEO, who also serves as the board's chairman
• Mark W. Ketchum, retired CEO of the Newell Rubbermaid Corporation and former Hershey board member
• Debra L. Lee, former CEO of BET Networks and current board member of AT&T, Marriott International, and Burberry Group
• Edward J. Kelly III, former CEO of United Parcel Service, Inc. and current board member of Johnson Controls International, plc
• Pamela Arway, former CEO of Oberweis Asset Management and current board member of Zillow Group, Inc.

The Hershey Company was founded in 1894 by Milton Hershey, who started the company as a subsidiary of his Lancaster Caramel Company. Today, Hershey is one of the largest chocolate manufacturers in the world, with products sold in over 60 countries. In addition to its iconic chocolate bars, Hershey also produces a variety of other confectionery products, including Reese's Peanut Butter Cups, Kit Kat bars, and Twizzlers.

The Selection Process for Hershey's Board of Directors

The Hershey board of directors selection process is designed to ensure that its members bring diverse perspectives, skills, and experiences to the table. The company's governance committee oversees the process, which includes reviewing potential candidates' backgrounds, conducting interviews, and evaluating their fit with the company's strategic goals and values. Ultimately, the board of directors approves new members and appoints them to the appropriate committees.

One of the key factors that Hershey's board of directors considers when selecting new members is their experience in the food and beverage industry. This is because the company operates in a highly competitive market, and having board members with relevant industry knowledge can help the company stay ahead of the curve. Additionally, the board also looks for candidates who have a strong track record of ethical leadership, as Hershey places a high value on corporate social responsibility.

Once appointed, Hershey's board of directors is responsible for overseeing the company's management team and making strategic decisions that will drive the company's growth and success. This includes setting long-term goals, approving major investments and acquisitions, and ensuring that the company is operating in compliance with all relevant laws and regulations. By bringing together a diverse group of experienced professionals, Hershey's board of directors is able to provide valuable guidance and support to the company's leadership team, helping to ensure that Hershey remains a leader in the food and beverage industry for years to come.

The Diversity and Inclusion Initiatives within Hershey's Board of Directors

The Hershey board of directors is committed to promoting diversity and inclusion within its ranks and throughout the company. Hershey's 2020 Corporate Sustainability Report highlights several initiatives aimed at enhancing diversity and inclusion, such as:

• Requiring diverse slates of candidates for senior leadership roles
• Offering unconscious bias training for employees
• Providing diverse suppliers with business opportunities
• Setting diversity and inclusion goals for the Board of Directors and Executive Team

In addition to these initiatives, Hershey's board of directors has also established an Employee Resource Group (ERG) program to support and empower underrepresented groups within the company. The ERGs provide a platform for employees to connect, share experiences, and advocate for diversity and inclusion in the workplace. Currently, Hershey has six ERGs, including groups for women, LGBTQ+ individuals, and people of color.

Performance Assessment and Evaluation Practices for Hershey's Board of Directors

The Hershey board of directors regularly assesses its own performance and seeks feedback from shareholders and other stakeholders to improve its efficiency and effectiveness. The company's governance committee is responsible for leading the performance evaluation process and identifying areas for improvement. The evaluation criteria include factors such as attendance, participation, leadership, and adherence to corporate governance principles.

In addition to the evaluation criteria mentioned above, Hershey's board of directors also considers the company's financial performance and strategic decision-making when assessing its own performance. The board regularly reviews financial reports and analyzes key performance indicators to ensure that the company is meeting its goals and objectives. Furthermore, the board evaluates its own decision-making processes to ensure that they align with the company's long-term strategy and vision.

The Impact of Hershey's Board of Directors on the Company's Growth

The Hershey board of directors has played a crucial role in the company's growth and success over the years. By offering strategic guidance and oversight, the board has helped Hershey expand its market share and diversify its product offerings. Furthermore, the board's commitment to corporate social responsibility has helped reinforce the company's reputation and brand image.

One notable example of the board's impact on Hershey's growth is the acquisition of Amplify Snack Brands in 2018. This acquisition allowed Hershey to enter the fast-growing market of better-for-you snacks and expand its product portfolio beyond traditional chocolate offerings. The board's foresight and willingness to take calculated risks have helped Hershey stay competitive in a constantly evolving industry.

Future Plans and Vision for Hershey's Board of Directors

The Hershey board of directors is focused on driving sustainable growth and value for shareholders over the long term. To achieve this goal, the board is working to maintain the company's market leadership position by investing in new products and innovations, expanding globally, and improving operational efficiency. Hershey's board is also committed to enhancing transparency and accountability through robust reporting and communication with shareholders and stakeholders.

In addition to these efforts, Hershey's board of directors is also prioritizing sustainability and social responsibility. The company has set ambitious goals to reduce its environmental impact, including a commitment to sourcing 100% certified and sustainable cocoa by 2020. Hershey's board is also focused on promoting diversity and inclusion within the company and its supply chain, and has established programs to support women and minority-owned businesses.

Looking to the future, Hershey's board of directors is exploring new opportunities in emerging markets and technologies. The company is investing in research and development to create new products that meet changing consumer preferences and trends, such as healthier snacks and plant-based options. Hershey's board is also considering strategic partnerships and acquisitions to expand its reach and capabilities in the global marketplace.

Comparison with Competitor Companies' Boards

When compared to other chocolate and confectionery companies, Hershey's board of directors stands out for its diversity and independence. For instance, Nestle's board of directors is composed primarily of company executives, with only a few independent directors. Similarly, Mars' board of directors consists mostly of family members and company executives, with limited independent representation. In contrast, Hershey's board of directors has a good mix of independent directors with diverse backgrounds and expertise, as well as company executives.

Furthermore, Hershey's board of directors has a strong commitment to sustainability and social responsibility. The company has set ambitious goals to reduce its environmental impact and has implemented programs to support cocoa farmers and their communities. This focus on sustainability and social responsibility is reflected in the composition of the board, which includes members with expertise in these areas. In contrast, some of Hershey's competitors have faced criticism for their environmental and social practices, and their boards may not have the same level of expertise or commitment to these issues.

Challenges Faced by Hershey's Board of Directors in the Current Market

The Hershey board of directors faces several challenges in the current market, including increased competition, changing consumer preferences, and supply chain disruptions. To address these challenges, the board is working to accelerate innovation and new product development, enhance marketing and advertising efforts, and streamline operations across the value chain. Additionally, the board is monitoring trends and developments in the industry and adapting the company's strategies accordingly.

One of the major challenges faced by Hershey's board of directors is the increasing demand for healthier and organic food products. Consumers are becoming more health-conscious and are looking for products that are made with natural ingredients and have fewer calories. To address this challenge, Hershey's board is investing in research and development to create healthier and organic products that meet the changing consumer preferences.

Another challenge faced by Hershey's board of directors is the impact of climate change on the cocoa industry. Climate change is affecting the production of cocoa, which is the main ingredient in Hershey's products. To address this challenge, Hershey's board is working with farmers and suppliers to implement sustainable farming practices and reduce the company's carbon footprint. The board is also exploring alternative sources of cocoa to ensure a stable supply chain in the future.

Public Perception and Feedback on Hershey's Board of Directors

The Hershey board of directors has generally received positive feedback from the company's shareholders and other stakeholders. According to the company's latest proxy statement, shareholders voted overwhelmingly in favor of the company's executive compensation plans and ratified the appointment of the company's independent auditor. Moreover, Hershey's reputation as a responsible corporate citizen has helped reinforce public trust in the board's oversight and leadership.

Conclusion: The Importance of a Strong and Effective Board of Directors for Business Success

The Hershey board of directors plays a critical role in the company's success, providing strategic guidance, ensuring financial performance and risk management, and promoting corporate social responsibility. By maintaining a diverse and independent board with strong leadership and governance practices, Hershey is well-positioned to continue delivering value to its stakeholders and achieve sustainable growth over the long term.