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 Utilitarian
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
Inefficient use of HR, should basis of competency or merit
Rights
against Discrimination
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.