Burhan  Saifaddin  –  Power  &  Glory  –  HBS    

John Hershey's goal of providing the most social value is a strong motive for the company's employees to achieve market leadership. In addition, Hershey found it natural to attach larger social goals to his chocolate business: Chocolate, which is a pleasure product, can be used to communicate and generate affectionate feelings. Employees’ happiness was a priority for ethical and business reasons, and for that reason, he was able to see beyond short-term profits. He wanted them to be happy, employed, and productive. He also knew that improving the workers' living conditions and comfort would make the company more productive and better able to produce high-quality products. He wanted to attract and retain the highest caliber of employees. Furthermore, the social causes and ethical values of the company became associated with its trademark and gave customers more satisfaction, and in turn, more value. Relative to the age of 19th-century capitalism, Hershey treated his employees in an exceptionally and innovative way. Hershey cared about developing and building a community that would empower and nurture his workers so they would work as hard and keenly as they could. His leadership and commitment to social values proved that putting workers' happiness and comfort, social goals, and sustainable, long-term profits ahead of short-term greed could lead to great products and productivity. He built the town of Hershey with its excellent schools, transportation system, and convenient houses, all of which inspired his city and his company's culture for more than 100 years. Businesses, perhaps, should not be narrowly focused and isolated from their ecosystems. They should be farsighted, flexible, and socially empowering. Hershey’s goal of building a sustainable and lasting business enterprise required a social contract with the community and the employees that endured after his death. The entitlements he gave to

Burhan  Saifaddin  –  Power  &  Glory  –  HBS    

his employees were in return for their hard work and enthusiasm for the company's business. He was eager, with high drive and great energy, and he expected his employees to put into their work the same drive and energy; he was a demanding employer. In his twenties, Melton had experienced two great failures: two bankruptcies. His business failures and experience in Pennsylvania, Denver, Chicago, New Orleans, New Jersey, and New York were significant and exposed him to different business practices, different chocolate technologies and tastes, and different markets and business partners. His failures served as his business school degrees and qualified him to start a much bigger business. One of his most important business lessons was learning how to manage cash flows for strategic and gradual expansion. This learning experience prepared him for larger expansion on a national scale. Furthermore, through his experiences in his twenties, he learned to build local networks. He also recognized the importance of researching and learning more about the industry; this experience led him to travel to Europe and to gain a significant knowledge of the European chocolate and candy industry. In addition, through his failed attempts, he achieved his most important product innovation: milk-chocolate-based products and product segmentations for different classes and tastes of customers. His story plainly shows that failures are necessary for success.