Business Finance
COMM 3300 Wayne State University Hershey Chocolate Company Managerial Report

Comm 3300

Wayne State University


Question Description

I don’t know how to handle this Communications question and need guidance.

The managerial report is on the company HERSHEY'S CHOCOLATE. You are to discuss a member of the "Fortune 500" to discuss the organization's corporate reputation. The company you choose for this should be of interest to you, and it should be facing a communications challenge. You will develop a presentation and report for the same company. Your modified formal report will be 8-10 pages, and will include specific organizational elements. Submit your managerial report in a WORD DOCUMENT.

COMM 3300 Wayne State University Hershey Chocolate Company Managerial Report
COMM 3300 Wayne State University Hershey Chocolate Company Managerial Report

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Final Answer


Managerial Report: Hershey
Chocolate Company

Presented by:

• Hershey Chocolate Company is currently
looking forward to be involve itself in social
activities in the community
• A recent example is the $9 million donation
to charity (Beckman, 2013)
• However, the firm is facing a serious
communication challenge
• As such, Whoriskey & Georges argue that
the company has failed to maintain an open
and honest communication about its idea of
being involved in charity work.
• This lack of honest communication may
damage its reputation
• Thus, this presentations explores the
communication issue in the company and the
way it affects the company’s reputation, the
stakeholders affected and the
recommendations as a way out.

Background Information
• Hershey Chocolate was formed in 1894 by Milton Hershey
• Besides producing cocoa, the firm is known for enhancing employee
productivity (Hershey, 2020).
• It is also committed in ensuring well-being of society
• To improve welfare in the community, the company built a recreational
park in 1906
• The company also opened a school for orphaned boys in 1909
• Presently, the company is a globally reputable firm leading in the
production of goods such as chocolates, cookies, cakes and beverage
drinks (Hershey, 2020).
• In 2012, the issue of child labor in the company came to the public
• The company promised quick action, but the issue is yet to be resolved
leading to accusations of dishonest communications
• This failure has been viewed as a serious communication issue
• As such, the current issue may destroy its more than 100-year

The issue of concern
• Hershey Chocolate is being accused of issuing dishonest
communication to stakeholders which may hurt its reputation
• In 2012 about 150,000 customers protested the firm’s engagement in
child labor (Stevens, 2012)
• The customers participated in a campaign dubbed “Raise the Bar,
Hershey!” and sent complains to management
• The movement also managed to stop new orders of chocolates in the
Whole Food Market
• The management responded by promising 100% certified cocoa trade
by 2020 (Whoriskey et al., 2019).
• Eight years are over, but the firm has not delivered on its promise as
it communicated.
• The managerial leaders in are not engaging in open communication
of their strategies which will affect its reputation and overall
• A top competitor, MARS has joined the movement by agitating
customers to avoid supporting unscrupulous firm

Effect on company’s reputation
• Since its formation, Hershey
Chocolate has built its
reputation around
truthfulness and honesty in
• As such, failure to deliver on
its 2012 promise and
honestly communicate about
it has a severe effect on the
company’s reputation.
• Among the stakeholders that
will greatly affected as a
result include;

The employees
The managerial Team

• The investors of the Hershey
Chocolate will be negatively
• They are worried that the company
might not meet their expectations
in term of profits and returns
• Investors are aware that continuous
issuance of dishonest
communication will result in loss
of market share
• This will then lead to loss of profit
margins and failure to achieve
targeted returns
• As such, they are interested in how
the management will handle the
issue to safeguard their interest

The employees
• The issue has put the
company’s employee at a
dilemma as they have to
choose one of two options;
1. Disrespecting the
management and refuse to
involve children in child
labor- this could lead to
2. Continue cooperating with
management and continue
child labor- This is
ethically wrong although it
may not lead to loss of
employment (Harlos,

• The management at large will also be negatively
• Managerial staff are concerned with
stakeholders loss of trust.
• They are also worried that they may also loose
the trust of customers and their by reduce sales.
• In an extreme scenario, they may also loose their
positions if the firm collapses due...

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