Cfa Hershey Chocolate
Contemporary Issues
GROUP ASSIGNMENT
0BU(ACCOUNTING AND FINANCE)
Leah Mpondela 609-6340-02
Fadzai Gambiza 609-6406-02
Takundwa Muzenda 609-6452-02
Mariam Nantumbwe 210052-01091-010
Question 1
(Group Question) I. It is very evident that one of the main responsibilities that the Hershey Trust Board views their responsibility to be is to the Milton Hershey School. In 1918, Milton Hershey endowed the trust board. The objective of this endowment was to have full support for the Milton Hershey School. Further in March 2002, the Trust Board decided to make a decision that was more in the schools favor, which was making sure that its holdings were less concentrated in Hershey stock. Moreover, the composition of the board moved more toward education professionals in that same year with their mandate remaining to serve the interest of Hershey school. There was also an increased concern with the board members that too much responsibility was being put on the shares on Hershey Food Corporation meaning less attention was being focused to the school. It addition, it was the boards obligation to keep up with the Hershey legacy by insuring that the decisions that had been made were in line with the legacy views. Keeping Hershey’s legacy of community involvement was a key obligation to the 17 members of the trust bored. Milton Hershey picked Pennsylvania out of many other locations because he wanted to develop a community, one which he grew up in. II. For other community members, they view the responsibility of the trust board to themselves. Hershey Pennsylvania had a population of about 22,400 of which 6,200 where employees of Hershey itself. The population were concerned that Hershey legacy of community involvement would be compromised in the sense that they will not be taken care of anymore and thus they will not have job security anymore and will lose their jobs. The community leaders went further and organized rallies that to echo their
GROUP ASSIGNMENT
0BU(ACCOUNTING AND FINANCE)
Leah Mpondela 609-6340-02
Fadzai Gambiza 609-6406-02
Takundwa Muzenda 609-6452-02
Mariam Nantumbwe 210052-01091-010
Question 1
(Group Question) I. It is very evident that one of the main responsibilities that the Hershey Trust Board views their responsibility to be is to the Milton Hershey School. In 1918, Milton Hershey endowed the trust board. The objective of this endowment was to have full support for the Milton Hershey School. Further in March 2002, the Trust Board decided to make a decision that was more in the schools favor, which was making sure that its holdings were less concentrated in Hershey stock. Moreover, the composition of the board moved more toward education professionals in that same year with their mandate remaining to serve the interest of Hershey school. There was also an increased concern with the board members that too much responsibility was being put on the shares on Hershey Food Corporation meaning less attention was being focused to the school. It addition, it was the boards obligation to keep up with the Hershey legacy by insuring that the decisions that had been made were in line with the legacy views. Keeping Hershey’s legacy of community involvement was a key obligation to the 17 members of the trust bored. Milton Hershey picked Pennsylvania out of many other locations because he wanted to develop a community, one which he grew up in. II. For other community members, they view the responsibility of the trust board to themselves. Hershey Pennsylvania had a population of about 22,400 of which 6,200 where employees of Hershey itself. The population were concerned that Hershey legacy of community involvement would be compromised in the sense that they will not be taken care of anymore and thus they will not have job security anymore and will lose their jobs. The community leaders went further and organized rallies that to echo their