Hershey's Business Ethics

Yes, I do consider management’s actions ethical. The Hershey Company is America’s largest chocolate company and has established itself as a cultural icon for brand innovation. That being said, it’s first and foremost obligation is to its shareholders and its consumers. The company has certain choices it needs to make when it comes to cutting costs. They are not going to jeopardize the name of the company by choosing to cut costs on the quality of their product, so they have no choice but to keep labor costs down. The union workers need to understand that the company has already established production plants in other countries where cost production is significantly lower, Mexico being a prime example.

Some other options could include hiring future employees at lower wages. Hershey’s could offer the senior workers buy out packages which would ultimately cut payroll and health care costs over the long term. Also by offering healthcare packages with different options, depending on the employee’s healthcare needs, allows the employee to determine their personal healthcare costs. To offset the reduction of wages, stock options may be offered.

As a key management employee, I would sit down with union representatives and explain to them what options management has to reduce costs and increase profitability. I would ask for their input and ideas in which they felt would be most cost efficient for the company and beneficial for the employees they represent. Hopefully working together a viable solution can be reached for the benefit of all parties involved.