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CSR Report CEO Letter ABOUT US FOUNDED in 1927 by MILTON S

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CORPORATE SOCIAL RESPONSIBILITY | 2016 SUMMARY “I HAVE ONLY ONE DESIRE IN THE REMAINING YEARS ALLOTTED ME, TO SEE THAT THE PEOPLE OF HERSHEY, WHICH INCLUDES MY EMPLOYEES, SHALL RECEIVE EVERYTHING THAT I COULD POSSIBLY DO TO MAKE NOT ONLY THEIR PLACE OF LIVING, BUT THEIR LIVES, MORE PLEASANT.” TABLE OF CONTENTS 3 Letter from Our CEO 4 About Us 5 HE&R & Its Subsidiaries 7 Milton Hershey School Relationship 9 Corporate Social Responsibility Summary 10 ENVIRONMENT 11 Energy & Natural Resources 12 Recycling & Waste Management 13 Wildlife & Habitat 15 COMMUNITY 16 Corporate Philanthropy 17 Supporting Our Community 20 Contribution of Expertise & Volunteerism 21 WORKPLACE 23 Inclusive & Respectful Workplace 26 Win-Win Employee Partnership 26 Wellness & Safety 27 MARKETPLACE & GUEST FOCUS 28 Business Integrity 29 Safety & Security 30 Collaboration with Stakeholders & Suppliers “I AM MORE INTERESTED THAN EVER IN MAINTAINING AND IMPROVING THE MORALE AND EFFICIENCY OF ALL OF MY COMPANIES. I WANT TO DEVOTE THE REST OF MY LIFE TO THAT END, FOR THE SCHOOL.” - MILTON S. HERSHEY, APRIL 1924 LETTER FROM OUR CEO At Hershey Entertainment & Resorts From employee volunteerism, in-kind Company (HE&R), we are fortunate and monetary donations, sponsorship to have the example of our founder, activations, extensive community Milton S. Hershey, to emulate for our partnerships and environmental corporate social responsibility (CSR) programs, Mr. Hershey’s example practices and beliefs. CSR means continues through our CSR activities different things to different people. today. Our CSR platform focuses on At HE&R, it means supporting our four pillars: environment, community and our • Environment valued team members. This approach • Community is similar to the practices that Mr. • Workplace Hershey demonstrated throughout his • Marketplace & Guest Focus life of caring for his community. Our team members are encouraged The foundation of our CSR philosophy to give back to the community while is rooted in our company’s core living by our company’s core values: purpose, to support Milton Hershey • Devoted to the Legacy School (MHS). Founded in 1909 • Selfl ess Spirit of Service by Milton and Catherine Hershey, • Team-Focused MHS is the largest home and • Respectful of Others school in the world giving children in need a nurturing environment On behalf of more than 8,000 and an abundance of educational full-time and seasonal/part-time opportunities. With more than employees, thank you for taking the 2,000 students currently enrolled time to review our 2016 Corporate in grades pre-kindergarten through Social Responsibility Summary. We 12th, MHS now counts 10,000+ look forward to continuing to build on alumni, affectionately known as our current practices and programs ‘Milts,’ among the benefi ciaries of while honoring our founder. the Hersheys’ enduring legacy. It is my honor to report that in 2016, Thank you, HE&R paid a dividend to MHS of $13,884,000, the largest in our company’s history. John Lawn President & CEO Hershey Entertainment & Resorts 3 2016 CSR Report CEO Letter ABOUT US FOUNDED IN 1927 BY MILTON S. HERSHEY • Privately owned by Hershey Trust Company, Trustee for the Milton Hershey School Trust, as the sole shareholder • Milton Hershey School ®, the world’s largest residential school for children in social and financial need, is the sole beneficiary of the Trust • Premier entertainment and hospitality company • 1,700 full-time and 7,000 seasonal and part-time employees • Annual revenues in excess of $334 million CORE PURPOSE & VALUES Hershey Entertainment & Resorts is proud to help fulfill the dream of our founder, Milton S. Hershey, by providing value to Milton Hershey School, the largest home and school in the world, as it continues to provide opportunities for children in need. Hershey Entertainment & Resorts DEVOTED TO THE LEGACY SELFLESS SPIRIT OF SERVICE TEAM - FOCUSED RESPECTFUL OF OTHERS Acting in a manner that reflects Serving our employees Supporting one another as Treating all people with the dedication and integrity and their families, our guests, we work towards common dignity, while respecting of our founder our community, and our goals and earning their dierences and ideas environment each others’ trust OWN ANTICIPATE “Teamwork Sells DELIGHT INSPIRE THE HERSHEY IDEA” 2016 CSR Report About Us 4 HE&R AND ITS SUBSIDIARIES OPERATE COMMERCIAL GROUP DOWNTOWN GIANT CENTERSM • Hershey® Laundry RESTAURANT GROUP • Home to the AHL Hershey Bears • Hershey® Nursery • Cocoa Beanery® hockey team, concerts, and basketball, • Devon Seafood + Steak wrestling, and ice shows • Houlihan’s Restaurant + Bar • Accommodates up to 12,500 people • Opened in 2002 HERSHEY BEARS® HERSHEY® COUNTRY CLUB HERSHEYSM THEATRE • Longest continually operating member • 45 holes of challenging golf in a • Seats 1,904 people club in the AHL legendary setting with private-club • Premier performing arts center • More Calder Cup wins than any other service presenting touring Broadway shows, team, with 11 championships in • Ideal setting for weddings and events music and family shows franchise history • Golf has been played in Hershey since • Opened in 1933 • Celebrating 80 years in the 2017-2018 1909 season 5 2016 CSR Report HE&R HERSHEY® LODGE HERSHEYPARK® HERSHEYPARK® • Full-service resort with 665 guest rooms • More than 70 rides and attractions CAMPING RESORT and suites, and more than 100,000 on 121 acres • More than 300 open and shaded sites, square feet of meeting space • 13 roller coasters including cabins, on 55 acres • Hershey’s Water Works at Hershey • More than 20 kiddie rides • Activities include swimming, basketball, LodgeSM indoor pool complex • 14 water attractions including a lazy a picnic area, and a Family Fun Center • Dining options include The Forebay, river and wave pool • Opened in 1963 HersheySM Grill, The Bears’ DenSM, • Food & beverage offerings include Fire & GrainSM, and Cocoa Beanery allergy-friendly options, Chick- fil-A®, • Opened in 1967 and much more • Opened in 1907 HERSHEYPARK® STADIUM THE HOTEL HERSHEY® ZOOAMERICA® NORTH • Most prominent outdoor stadium • Historic hotel with 276 guest rooms, AMERICAN WILDLIFE PARK between Philadelphia and Pittsburgh suites, and Woodside Cottages • 11-acre, walk-through zoo • Hosts annual Summer Concert • Dining options include The Circular®, • Home to more than 200 native North Series, PIAA Football and Soccer Trevi 5SM, HarvestSM, Iberian LoungeSM, American animals representing more Championships and Cocoa Beanery than 60 species from five regions of • Accommodates up to 30,000 people • The Spa At The Hotel HersheySM, North America • Opened in 1939 a full-service spa, opened in 2001 • Opened as ZooAmerica in 1978 • Opened in 1933 2016 CSR Report HE&R 6 On an annual basis, HE&R donates hundreds of tickets to events at HersheySM Theatre, Hersheypark® Stadium, and Giant CenterSM arena MORE THAN (including the exclusive use of a suite) to help MHS students experience cultural and sporting events. We also provide Hersheypark Season Passes $486,600 to MHS students, houseparents and staff members. In 2016, these experiences were collectively worth more than $486,600. MILTON HERSHEY SCHOOL RELATIONSHIP Since 1909, Milton Hershey School (MHS) has provided a positive, structured home life to help children gain the skills to be successful in all aspects of life. Today, MHS serves more than 2,000 children from income eligible families. Welcoming students from pre-kindergarten through grade 12, MHS is the world’s largest residential school and home giving students access to award-winning programs, top-notch teachers, ongoing healthcare, wonderful mentors and alumni services. 7 2016 CSR Report MHS The investment income generated by One such program is Project THE FOUNDATION the Milton Hershey School Trust is Fellowship (PF), pairing HE&R used to fund the operations of MHS, team members with MHS student OF OUR COMPANY’S its sole benefi ciary. Among the Trust’s homes to create fun and rewarding FINANCIAL SUPPORT TO assets are all of the shares of stock of relationships via ongoing activities HE&R. Our company’s core purpose is and connections. The mission of PF MHS IS OUR ANNUAL to provide value to MHS, which we do is to foster a sense of connection and CASH DIVIDEND. SINCE in many ways every day. community between MHS students 2011, WE’VE BEEN PROUD and participating employees and Throughout the year, HE&R aids their family members. Those involved TO HAVE INCREASED THAT MHS with educational support in this unique program assist MHS DIVIDEND EVERY YEAR. and career opportunities through students with homework, attend internships, job shadowing, mentoring sporting events, enjoy dinners at activities, seasonal employment and the student homes, and celebrate academic needs. MHS seniors have seasonal events and birthdays, and $13.8 the opportunity to work in HE&R much more. The program is a win- Million $9.2 co-op programs, gaining a wide array win for the students, houseparents $7.8 Million of professional experience from all and our team members who fi nd it $6.8 Million aspects of our company. This program very rewarding. HE&R has supported Million gives students valuable real-life this important program for years. experience to help ensure a positive Sponsoring as many as 25 student future beyond MHS. homes, an estimated 372 HE&R employees and family members MHS is not just a school – it’s a give their time and focus to MHS home, too. Students live on campus students. HE&R has supported this 2013 2014 2015 2016 in student homes with houseparents worthwhile program for years, and and 8-12 other students. Student is proud to be one of its largest DIVIDENDS PAID TO MILTON HERSHEY homes are at the core of the participants. SCHOOL FOR EACH RESPECTIVE YEAR’S children’s experience providing a PERFORMANCE. nurturing environment and there are several programs to help students develop a sense of belonging within the MHS and Hershey communities. FOR MORE INFORMATION ABOUT THE SCHOOL, VISIT MHSKIDS.ORG.
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