oKroger used to be the nation's #1 pure grocery chain in the US. oThe company operates about 3,620 stores, including some 2,465 supermarkets and multidepartment stores, in about 30 states. oKroger's Fred Meyer Stores subsidiary (acquired in 1999) operates about 125 supercenters, which offer groceries, general merchandise, and jewelry, in the western US. Ralphs:
oThe oldest grocer west of the Mississippi.
oRalphs Grocery Company runs about 260 Ralphs supermarkets in Southern California and also some 115 warehouse-style stores. oRalphs closed about 20 stores in Southern and Central California in 2005, citing poor performance, and in 2006 began closing or selling stores in Northern California, including the last of its stores in the Sacramento area.
In 1996, six women sued Ralph for harassment
In October 1998, Kroger acquired Ralphs
In June 1998, jury reached a two part verdict (Found the supermarket chain liable for gender harassment and Penalty) In 1999, Misiolek (the Manager) demoted to working on loading dock In 2000, Ralph sent Misiolek Disciplinary letter, 14 months after that he quit In 2002, Judge argued that the punitive damages to excessive, and new verdict created July 2002, two women agreed and other four rejected
WHAT ROGER MISIOLEK HAS BEEN DONE?
Foul language / verbally abused
Should Kroger pay for the penalty that the Ralph employee did? Suspected cause of problems:
•Discrimination to woman and minorities.
1.Is the judge right that a company as a whole should not be held responsible for his action? Should the company be responsible for policies that prevent complaints from reaching headquarters? 2.What kind of penalty do you believe would be appropriate for Ralph? Was the $33,3 million penalty...