Business and Ethics

1. Should Kroger Pay now for what
ralphs’ employee did then?
No. Name Matric no.
1 Sman Tairos 230698
2 Mst Monira Parvin 230903
3 Mariyah Binti Abdul Rahim 234502
4 Murodullaer Sherzod 287208

2. Introduction

3. Summary of the case
1996 Six women sued Ralph for harassment
1998 Kroger acquired Ralph
1999
2000
Misiolek demoted to working on loading dock
2002
Ralph send Misiolek disciplinary letter, 14th
month after that he quit
Judge argued reduced the punitive damage from
30.6 million to 8.25 milliom

4. ETHICAL VARIOUS
PERSPECTIVES
– Asymmetric Information
– Unethical conducts from Individual (Misiolek)
– Unethical conduct from institution level (Ralph’s
Management & Employees)
– Lack of appropriate policy rules and regulation
– Unethical judgment from the court

5. Case Questions’ answer
Question 1
Assuming that the store and district managers of Ralphs received
complaints about Misiolek’s behavior starting in 1985, but that
these complaints did not reach Ralphs’ headquarters in Compton,
do you believe that the judge is right in holding that the company as
a whole should not be held responsible for his actions? Should the
company be held responsible for policies that prevent complaints
from reaching headquarters?

6. – In my point of view, the judge is not right that the company as a
whole should not be held responsible for his actions. Any
company should be held responsible for their actions including
Ralphs. According to what I’ve learned, corporate organizations
are morally responsible for their actions and that their actions
are moral or immoral in exactly the same sense that human
beings are. Hence Ralphs are morally responsible for their actions
assumed that the complaints did not reach Ralphs’s
headquarters in Compton or not. The company must be held
responsible for policies that prevent complaints from reaching
headquarters.

7. 2. What kind of penalty do you believe would be
appropriate for ralphs? In your view, was $33.3
million penalty excessive? Explain
– Compensatory and punitive damage
– In my opinion, the $33.3 million of penalty was not
excessive because the effects of sexual harassment
may cause those six women psychologically and
mentally.
– According to the Sexual Harassment Support (2006),
sexual harassment victims can suffer the same effect as
rape victims in a way that they suffer mentally and
physically.

8. 3. Should kroger pay for events that
happened before it took over the chain of
supermarket?
– By law, Kroger has a responsibility for all the
business activities that it owned.
– Kroger now owned Ralphs, Kroger hold
responsibility for its assets and liabilities in
accordance with condition or agreement made
between the two parties.

9. 4. Many states (but not california) adopt federal rules that
place a cap of $300, 000 on punitive damages in
harassment case. Is such a cap a god idea from an ethical
point of view? Explain
– In my opinion, it is a good idea to place a cap of
$300, 000 on punitive damages in harassment case
– Due to the huge of punitive damage imposed, the
individual at least think of much amount of money if
he/she commits harassment

10. 5. What can a company do to make sure that a situation
like Misiolek’s does not occur? Why do you think ralphs
allowed Misiolek to continue managing stores?
– Ralphs should review its code of ethics and policies and
harassment to make sure that unfortunate case did not
happen again.
– Create good corporate governance
– stricter sexual harassment punishments

11. Continue
– However, the only reason why they allowed him
to keep and let him continue his job was because
of how well he was as a worker. Because as they
said, whichever store he was working that place
were kept flourishing and making excellent
figures.

12.  The court should charge both
the company as well as the
individual.
 Ethically Kroger should not
pay at all, however actually it
depends on the acquisition
contract between Kroger with
Fred Meyer and Fred Meyer
with Ralphs.
 Provide training for manager
and employee about
managing diversity in work
place .
 There should be effective
organization policy that are
in the written format and
distribute among the
employee.
 Facilities 0f feedback, online
complain media, supervisory
for manager.