Hershey Assume that you are a member of the Hershey Trust board. To whom (or what) do you owe your fiduciary responsibility? How does the legacy of Milton S. Hershey affect your ...

Introduction:
Hershey was founded by Milton Snavely Hershey. He founded the Lancaster Caramel Company at the age of 29, sold the company for $1 million in the 1900s, and used the proceeds to buy the land needed to build the chocolate factory. The Hershey Chocolate Company was established in December 1904 after Hershey constructed the largest chocolate factory on the planet. The Hershey Trust Company's board of trustees made the decision to sell the shares it owned in the Hershey Foods Corporation during a meeting in 2002, reasoning that it would be wiser to diversify its assets rather than place the majority of its holdings in Hershey stock. A combination offer from Nestlé S.A. and Cadbury Schweppes PLC, as well as an individual offer from the Wm. Wrigley Jr. Company, were being considered by the board. The board's major concerns were whether the bidders had fairly evaluated Hershey and whether the transaction would preserve Hershey's history of charitable giving.
Q1: Assume that you are a member of the Hershey Trust board. To whom (or what) do you owe your fiduciary responsibility? How does the legacy of Milton S. Hershey affect your thinking as a member of the board? Discuss the unique challenges presented by the ownership structure of Hershey.
Solution: We would have a fiduciary duty to the Milton Hershey School as well as to contribute to the institution's mission if we were board members of the Hershey Trust Company. We might infer from that that Mr. Hershey dedicated his entire life to helping individuals in his society. The legacies of Milton S. Hershey will influence our decisions as board members since we are aware that Mr. Hershey devoted his life to serving his community. Since he didn't have any children that were his own and since it was his late wife's idea, teaching underprivileged kids was very important to him. As members of the board of trustees for the Hershey Trust Company, this legacy of educating underprivileged youngsters from the neighbourhood would influence our thinking. This heritage of educating disadvantaged children from our society will be influenced by our perspectives as members of the board of trustees of the Hershey Trust Company. We might promote the preservation of the Milton Hershey school foundation by supporting the needs of Hershey Foods Group and the Hershey community in Pennsylvania as a whole, which could be viewed as a bias in our decision-making.
He focused entirely on Hershey Co. and established a standard of care, that he upheld, as was shown in the Milton Hershey case. He started his business in 1908 by purchasing land and constructing the Hershey Factory after accumulating all of the sales and saving up for it. Milton Hershey treated his crew with a highly positive view and attitude. He did not want to terminate or get rid of his employees, despite the fact that revenues had decreased by 50%.
Companies frequently issue stocks as a means of raising capital. To accomplish this, the company sells a piece of itself to an investor, also known as a shareholder. Many businesses have been established by Milton Hershey, including the Hershey Chocolate Company and Hershey Transit Company. These were held in secret, allowing a small number of shareholders to quietly exchange or trade equities. Hershey Park is another illustration; it was supported by a private investment provided by Milton Hershey personally. Although Milton Hershey was indeed the primary owner of all of these businesses, they continued to run independently.
Q2: Based on your valuation of HFC, do you believe the...