Corporate Social Responsibility 2014 SUMMARY 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 14 Education & Communication 15 COMMUNITY 16 Corporate Philanthropy 20 Contribution of Expertise & Volunteerism 21 WORKPLACE 22 Inclusive & Respectful Workplace 25 Win-Win Employee Partnership 26 Wellness & Safety 27 MARKETPLACE & GUEST FOCUS 28 Safety & Security 29 Business Integrity 30 Collaboration with Stakeholders & Suppliers 2014 CSR Report HE&R 1 LETTER FROM OUR CEO recycling programs, and more. As you will read throughout this report, HE&R’s The practice of CSR platform focuses on four pillars: ‘corporate social • Environment responsibility’ (CSR) • Community • Workplace began within our • Marketplace & Guest Focus company, Hershey The foundation of our CSR philosophy Entertainment & is our support of the Milton Hershey School®, founded in 1909 by Mr. & Resorts® (HE&R), Mrs. Hershey. As the largest home and school in the world, it provides a more than a century premier education and an abundance of opportunities for children in grades ago with our founder, pre-K-12. Our core purpose is to fulfill the dream of our founder by providing Milton S. Hershey. value to the School. It is my great honor to report that in 2014, we paid a By definition, CSR is a dividend of $7.8 million, the largest in company’s impact on its our company’s history. workforce, the environment, The legacy of Milton S. Hershey is one and the community in which endures today through the astute which it resides. business practices he successfully established decades ago. Today, Mr. Hershey practiced this philosophy our employees strive to live by our in business and in life – before the company’s core values of Devoted to term CSR was even coined. From the Legacy, Selfless Spirit of Service, creating an all-encompassing town for Team-Focused, and Respectful of his employees to live, work, and enjoy Others. On behalf of nearly 1,600 their free time – to establishing, along full-time and 6,200 seasonal/part- with his wife, Catherine, a school for time employees, thank you for giving orphan boys, Mr. Hershey consistently us the opportunity to maintain the leveraged his business successes to legacy of Mr. Hershey while providing help others. memorable experiences for the millions of visitors to Hershey The Sweetest These admirable actions ring true within Place On Earth®. HE&R today. I am proud to share the HE&R Corporate Social Responsibility – Thank you, 2014 Summary with you. CSR activity and giving back are priorities for our company. Within these pages you will see efforts highlighted from employee Bill Simpson volunteerism, in-kind and monetary President & CEO donations, sponsorship activations, Hershey Entertainment & Resorts 3 2014 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 • Approximate annual revenues of $297 million • 1,600 full-time and 6,200 seasonal and part-time employees 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 Hersheyschool Entertainment in the world, as & it Resorts continues® to provide opportunities for children in need. 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” 2014 CSR Report About Us 4 HE&R AND ITS SUBSIDIARIES OPERATE COMMERCIAL GROUP DOWNTOWN GIANT CENTERSM • Hershey® Cleaners RESTAURANT GROUP • Home to the AHL Hershey • Hershey® Nursery • Café Zooka Bears® hockey team, concerts, • Cocoa Beanery® and basketball, wrestling, and ice • Devon Seafood + Steak shows • Houlihan’s Restaurant + Bar • Accommodates up to 12,500 people HERSHEY BEARS HERSHEY® COUNTRY CLUB HERSHEY GARDENS • Longest continually operating • 45 holes of challenging golf in a • More than 75 years of beauty member club in the AHL legendary setting with private-club • 23 acres of themed gardens, • More Calder Cup wins than any service seasonal displays, 5,000 rose other team, with 11 championships • Dine at the member-only bushes, a children’s garden, and a in franchise history Hogan Grill seasonal Butterfly House 5 2014 CSR Report HE&R HERSHEY® LODGE HERSHEYPARK® HERSHEYPARKSM • Full service resort with 665 guest • More than 70 rides and attractions CAMPING RESORT rooms and suites on 121 beautiful acres • More than 300 open and shaded • More than 100,000 square feet of • 13 world-class roller coasters sites, including cabins, on 55 acres meeting space • More than 20 kiddie rides • Dining options include The • 15 water attractions including a Forebay, Hershey® Grill, The lazy river and wave pool Bears’ Den,SM Lebbie Lebkicher’s,® and Cocoa Beanery HERSHEYPARK® STADIUM THE HOTEL HERSHEY® ZOOAMERICA® NORTH • Most prominent outdoor stadium • Historic hotel with 276 guest AMERICAN WILDLIFE PARK between Philadelphia and rooms, suites, and Woodside • 11-acre, walk-through zoo Pittsburgh Cottages • Home to more than 200 native • Hosts annual Summer Concert • More than 25,000 square feet of North American animals Series, PIAA Football and Soccer meeting space Championships, and the BIG 33 • Dining options include The Football Classic Circular®, Trevi 5, Harvest, Iberian • Accommodates up to 30,000 LoungeSM, and Cocoa Beanery people 2014 CSR Report HE&R 6 MILTON HERSHEY SCHOOL RELATIONSHIP Serving more than 2,000 children, the Milton Hershey School (MHS) is the world’s largest residential pre-kindergarten through grade 12 school and home. Its mission is to nurture and educate children in social and fi nancial need to lead fulfi lling and productive lives. MHS was established in 1909 by Milton and Catherine Hershey, who created and endowed a trust with their fortune to help as many children as possible in perpetuity. For more information about the school, visit mhskids.org. 7 2014 CSR Report MHS The investment income generated by the Milton Hershey School Trust is used to fund the operations of MHS, which is the sole benefi ciary of that trust. Among the Trust’s assets are all of the shares of stock of HE&R; therefore, our core purpose is to provide value to MHS, which we do in many ways. FINANCIAL SUPPORT We are also proud to help prepare members, there are several programs INCLUDES A SIGNIFICANT students for fulfi lling and productive to help students develop a sense of ANNUAL CASH DIVIDEND lives by providing educational support belonging within both the school and AND INDIRECT FINANCIAL and career opportunities. Working Hershey communities. SUPPORT BY PROVIDING with educators at the school, HE&R ENTERTAINMENT AND team members serve on advisory One such program is Project CULTURAL ENRICHMENT committees in planning curricula and Fellowship (PF), which pairs our programs that prepare students to employees with MHS student homes ADMITTANCE TO HE&R enter their chosen career. At HE&R, in fun and rewarding relationships. VENUES. you’ll fi nd MHS students interning, The mission of PF is to build a bridge and other students job shadowing and foster a sense of connection or working as full-time, part-time, or and community between MHS $7.8 seasonal employees. MHS seniors students and houseparents and Million $6.8 have the opportunity to work in co-op participating employees and their Million $5.3 programs, resulting in more than family members. Those involved fi nd $4 Million $26,000 in co-op wages for the 2014 a variety of ways to give MHS children Million school year. In each case, all students a sense of family, including helping are supervised and mentored by our with homework; attending their employee partners, who help them to sporting events, concerts, and other gain valuable real-life experiences. extracurricular activities; celebrating birthdays and holidays; and other MHS is not just a school but also simple, yet meaningful experiences 2011 2012 2013 2014 a home; its program is year-round that are part of growing up. We have DIVIDENDS PAID TO MILTON HERSHEY and children live on campus in supported this heartwarming program SCHOOL FOR EACH RESPECTIVE YEARS’ student homes. These homes, and for years, and are proud to be one PERFORMANCE. the houseparents at each home, of the largest participants in the PF are at the core of the children’s program. Sponsoring as many as experience while they are enrolled 21 student homes, several hundred at MHS. Each child is cared for by HE&R employees and family members As a premier entertainment and committed houseparents with child- have given their time while building cultural destination, we help to care experience. While the students important relationships with MHS enrich the lives of MHS students continue to have contact with family children and houseparents. by annually donating hundreds of tickets to events at Hershey Theatre, Hersheypark Stadium, and Giant Center (including the exclusive use of a Founder’s Suite), and Hersheypark Season Passes for all MHS students and houseparents – collectively worth more than $340,000 in 2014. 2014 CSR Report MHS 8 CORPORATE SOCIAL RESPONSIBILITY Hershey Entertainment & Resorts® CORPORATE SOCIAL RESPONSIBILITY Building on Milton S.