SHOULD KROGER PAY NOW

FOR WHAT RALPH’S

EMPLOYEE DID THEN?
COMPANY PROFILE
Problem Chronological
 In 1998, Kroger acquired Ralphs
 In 1996, Six women sued Ralph for
harassment.
 In June 1998, jury reached a two part verdict

Found the supermaket chain liable for gender

harrasment
Penalty
 in 1999, Misiolek(Manager) demoted to
working on loading dock
 In 2000, Ralph sent misiolek Disciplinary
letter , 14 months after that he quit.
Problem Chronological (CONT’D)
 In 2002, Judge argued that the punitive
damages too excessive, and new verdict
created
 July 2002, two women agreed and other four
rejected
BASIC THEORY
Discrimination:
The wrongful act of distinguishing illicitly
among people not on the basis of individual
merit, but on the basis of prejudice or some
other invidious or morally reprehensible
attitude.

Affirmative action program:

A program designed to ensure the proportion
of minorities within an organization matches
their proportion in the available workforce
 Arguments against Discrimination
 Utilitarian arguments
 Inefficient use of HR, should basis of competency
or merit
 Rights arguments
 Violates basic human rights, each individual has
a moral right to be treated as a free person equal
to any other person
 Justice arguments
 Violates the basic principle of justice by
differentiating between people on the basis of
characteristics (race or sex) that are not relevant
to the tasks they must perform
 Discrimination exists when a
disproportionate number of the members of
a certain group hold the less desirable
positions within the institution despite their
preferences and abilities.
 Three kinds of comparisons can provide
evidence for such a distribution:
- comparisons of the average benefits the
institutions bestow on the discriminated
group.
- comparisons of the proportion of the
discriminated group found in the lowest
levels of institutions.
- comparisons of the proportions of that
group that holds the more advantageous
positions.
CASE PROBLEM
 Should Kroger pay for the penalty that the
Ralph employee did?

 Suspected Cause of Problems :

Discrimination to woman and minorities
Sexual Harassment
Racist
Abusive
ANSWERING THE QUESTION?
 Should the company held responsible?
No
 Was the 33.3 million penalty excessive?
No, is too excessive
 Should Kroger Pay?
Yes, because when its happen Kroger had
already acquisition Ralph
 300,000 on punitive damages, good idea or
not?
 How to prevent the situation does not occur
again? why they keep Misiolek continue
managing stores?
training , strict sanction
CONCLUSION
 Judge should not only penalize the Kroger
with money penalty but judge have to give a
strict sanction by non activate the store
(ralph)
 Provide a training for manager and employee
about managing diversity.
