CORPORATE SOCIAL RESPONSIBILITY 2018 SUMMARY TABLE OF CONTENTS 3 Letter From Our CEO 4 About Us 5 Hershey Entertainment & Resorts Company 7 Milton Hershey School Relationship 9 Corporate Social Responsibility Pillars 11 COMMUNITY 13 Supporting Our Community 15 Making A Difference 16 Hershey Bears® hockey team 17 ENVIRONMENT 18 Energy & Natural Resources 19 Recycling & Waste Management 20 Wildlife & Habitat 21 WORKPLACE 23 Employee Programs 24 Employee Resource Groups 26 Wellness & Safety 27 MARKETPLACE & GUEST FOCUS 29 Business Integrity & Collaboration 30 Safety & Security A LETTER FROM OUR PRESIDENT, CEO & CHAIRMAN ABOUT US In looking back at history, it can be easily argued that our founder, Milton S. Hershey, was one of the first people to practice corporate social responsibility (CSR). From his desire to ensure that his employees and townspeople had an OUR TEAM MEMBERS* idyllic community where they could safely and happily live, work, and play, to leaving his entire fortune to maintain and grow Milton Hershey School (MHS), Mr. Hershey lived his life with undeniable selflessness. Mr. Hershey’s rich history and focus on philanthropy serve as the foundation for Hershey 1,750 7,000 Entertainment & Resorts Company (HE&R)’s current-day approach to CSR, FULL-TIME PART-TIME which we are pleased to showcase in this report. EMPLOYEES & SEASONAL EMPLOYEES Our company is proud to share what our employees and guests have done to improve and nurture our community, environment, workplace, and EMPLOYEES RANGE IN AGE marketplace. I would like to personally thank our team members for continually FROM demonstrating HE&R’s core values - Devoted to the Legacy, Selfless Spirit of 14-90 Service, Team-Focused, and Respectful of Others - through countless hours of volunteerism, donating their time and resources to people in need, and OF OF ALL ALL diligently serving the students, teachers, and staff of MHS. Throughout 2018, 51% 34% HE&R provided approximately $2.5 million in monetary and in-kind donations FULL-TIME MANAGERS to hundreds of organizations. I am grateful to be able to work with so many EMPLOYEES STARTED IN HE&R team members who make such an effort to give back to our community. STARTED IN PART-TIME POSITIONS Throughout this report, you will see examples of how HE&R continues PART-TIME to preserve our legacy, protect our environment, and aid our community POSITIONS members. 188 LEGACY EMPLOYEES Thank you, 25+ YEARS OF FULL-TIME SERVICE OF THOSE John Lawn 73 President, CEO & Chairman LEGACY EMPLOYEES HAVE YEARS GIVEN 35+ OF FULL-TIME SERVICE Hershey Entertainment & Resorts *AS OF SUMMER 2019 DEVOTED TO THE LEGACY SELFLESS SPIRIT OF SERVICE TEAM - FOCUSED RESPECTFUL OF OTHERS HE&R WAS FOUNDED IN 1927 BY MILTON S. Acting in a manner that reflects Serving our employees Supporting one another as Treating all people with HERSHEY. THE COMPANY IS PRIVATELY HELD the dedication and integrity and their families, our guests, we work toward common dignity, while respecting BY HERSHEY TRUST COMPANY, AS TRUSTEE FOR of our founder our community, and our goals and earning their dierences and ideas MILTON HERSHEY SCHOOL TRUST. HE&R IS A environment each other’s trust PREMIER ENTERTAINMENT AND HOSPITALITY OWN ANTICIPATE “Teamwork Sells THE HERSHEY IDEA” COMPANY COMPRISED OF MANY DIVERSE DELIGHT INSPIRE ® BUSINESS OPERATIONS. 3 2018 CSR Summary CEO Letter 2018 CSR Summary About Us 4 HERSHEY ENTERTAIMENT & RESORTS COMPANY RESTAURANT GROUP GIANT CENTERSM ARENA HERSHEY BEARS® HERSHEYPARK® HERSHEYPARK HERSHEYPARK® STADIUM • Cocoa Beanery® Cafe • Home to the AHL Hershey Bears • Longest continuously operating • More than 70 rides and CAMPING RESORT® • Most prominent outdoor • Devon Seafood + Steak hockey team, concerts, and club in the AHL attractions on 121 acres • More than 300 open and stadium between Philadelphia • Houlihan’s Restaurant + Bar basketball, wrestling, and ice shows • More Calder Cup wins than • 14 coasters shaded sites, including cabins, and Pittsburgh • Accommodates up to 12,500 people any other team, with 11 • More than 20 kiddie rides on 55 acres • Hosts annual Summer Concert • Owned by the Derry Township championships in franchise • 14 water attractions including • Activities include swimming, Series, PIAA Football and Industrial and Commercial history a lazy river and wave pool basketball, a picnic area, and Soccer Championships Development Authority • Celebrated 81 years in the 2018- • Food & beverage offerings a Family Fun Center • Accommodates up to COMMERCIAL GROUP • Opened in 2002 2019 season include allergy-friendly options, • Opened in 1963 30,000 people ® • Hershey® Laundry & Dry Cleaning Chick-fil-A , and much more • Opened in 1939 • Hershey® Nursery • Opened in 1906 HERSHEY® COUNTRY CLUB HERSHEY THEATRESM HERSHEY LODGESM MELTSPA® BY HERSHEY THE HOTEL HERSHEY® ZOOAMERICA® • 45 holes of championship golf • Seats 1,904 people • Full-service resort with 665 • Full-service day spa • Historic hotel with 276 guest NORTH AMERICAN in a historic setting with exemplary • Premier performing arts center guest rooms, and 100,000+ square • Features exclusive Hershey's rooms, suites, and Woodside WILDLIFE PARK guest and member service presenting touring Broadway feet of meeting space Dark Chocolate treatments CottagesSM luxury accommodations • 11-acre, walk-through zoo • Ideal setting for weddings shows, music, and family shows • Hershey’s Water Works at Hershey • Opened in 2017 • Dining options include • Home to more than 200 native and events • Opened in 1933 LodgeSM indoor pool complex The Circular®, Trevi 5SM, North American animals • Golf has been played in Hershey • Dining options include The HarvestSM, Iberian LoungeSM, representing more than 60 since 1909 ForebaySM, Hershey GrillSM, The and Cocoa Beanery species from five regions of Bears’ DenSM, Fire & Grain®, and • The Spa At The Hotel Hershey®, a North America Cocoa Beanery® full-service spa, opened in 2001 • Opened as ZooAmerica • Opened in 1967 • Opened in 1933 in 1978 5 2018 CSR Summary HE&R 2018 CSR Summary HE&R 6 MILTON The most important responsibility our company has is to carry on the legacy of Milton and Catherine Hershey, which is why HERSHEY our company’s core purpose reads, “Hershey Entertainment SCHOOL & Resorts Company is proud to help fulfill the dream of our founder, Milton S. Hershey, by providing value to Milton PROJECT FELLOWSHIP EMPLOYEE ENGAGEMENT HERSHEY PROJECT PATHWAYS Hershey School in its mission of helping students lead happy, healthy, and fulfilling lives - just as Mr. Hershey intended.” In addition to our annual dividend, we instances, are lacking in their lives. COLLABORATION ON provide MHS tickets to entertainment These special relationships allow MARKETING STRATEGIES shows and cultural events at for additional mentorship on both • Our collective teams continually MILTON HERSHEY SCHOOL GIANT Center, Hershey Theatre, and scholastic and personal levels, which work to ensure that our internal and INTERNSHIP PROGRAM Hersheypark Stadium, which totaled supplements the “whole child” external messaging about Mr. and $480 thousand in 2018. Every year, development approach embraced by Mrs. Hershey, our shared history, each MHS student, and many teachers MHS. Throughout the school year, MHS, and our partnership are and employees, receive a Season Pass nearly 350 employees volunteered aligned. Internally, MHS updates to Hersheypark, collectively valued at with 27 student homes. and engagement opportunities are $126 thousand. regularly shared through property PROJECT-BASED PROBLEM SOLVING town hall meetings, ongoing One of the most meaningful ways • The Hershey Project Pathways company-wide emails, and our our company positively impacts program was introduced in 2018 employee newsletter, Dateline. the lives of the children at MHS is and brought students from the 11 through our employee engagement MHS Career & Technical Education PROFESSIONAL DEVELOPMENT FOR and volunteerism. In 2018, MHS and pathways together with HE&R LEADERS AND MANAGERS HE&R formed a Partnership Committee mentors. As part of this program, • Both organizations are committed to to increase engagement and improve students have the opportunity to work expanding educational opportunities communication between the two on projects that are both educational and awareness among our employees. organizations. MHS President Pete and informative. This “evergreen” All new HE&R full-time employees Gurt shared that the most valuable program continues with new projects take an MHS Immersion class that item we can give to the students is our and students every year. introduces them to Mr. Hershey’s time, and our employees delivered on legacy, the School’s mission, and EMPLOYMENT OF MHS STUDENTS that request. Throughout the 2018-19 our deep connection. Throughout AND ALUMNI school year, volunteerism to the School 2018, more than 220 employees increased significantly through the five • HE&R employs an estimated We provide value to MHS, founded participated in this onboarding pillars of engagement identified by 90 students and alumni across in 1909 by Milton and Catherine opportunity. President Gurt: our properties through ongoing Hershey, in a number of different ways. internship, apprenticeship, co- Our greatest source of pride is our First, our company provides financial INTENTIONAL LIFE & SOCIAL op, and hiring programs. These employees’ engagement with the support to MHS in the form of our SKILLS DEVELOPMENT employment opportunities provide School. From attending sporting events annual dividend. Since 2012, our • Project Fellowship pairs MHS student MHS students with short-term and musical performances to helping company has increased our dividend homes with HE&R team members and long-term life skills. From with mock interviews and resume annually, giving more than $61 million who regularly spend time with learning about an industry or trade writing, HE&R is committed to serving to MHS between 2012 and 2018. the children in and away from the to understanding the importance MHS and honoring the legacy of Milton HE&R team members are proud to $4,000,000 $5,275,000 $6,818,000 $7,891,000 $9,181,000 $13,884,000 $14,427,000 student home. These interactions of meeting deadlines and arriving S.