Chapter 7 - Case Study
Chapter 7 - Case Study
Chapter 7 - Case Study
Cabigao
BUS 185 – T (6:10 – 9:00 pm)
Chapter 7 – Should Kroger Pay Now for What Ralphs' Employee Did in the Past?
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?
The judge is not right that the company should not be held responsible for his actions
since there is discrimination and sexual harassment. As there is a tight relationship
between ethics and business. It is important to meet the employees’ needs in the future
for business success. Any company should be held responsible for their actions including
Ralphs. As corporate organizations are morally responsible for their actions and that their
actions are moral or immoral in 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. Ralphs Grocery should be held responsible because their
management did not facilitate feedback, and for policies that prevent complaints from
employee reaching headquarters. There was also no control mechanism or agency to
discover the employees’ actions on Ralphs Grocery Co. The most important thing that
should be underlined is when several women already complained to Ralph’s
management, but the company did not take any disciplinary action towards Misiolek.
Misiolek did not received any punishment from the agency toward his actions and was
not removed from his position as store manager but instead moved the complaining
women to other stores.
2. What kind of penalty do you believe would be appropriate for Ralphs? In your view, was the
initial $33.3 million penalty excessive? Explain. Was the final 2006 judgment fair? Explain.
The penalty appropriate for Ralphs should be compensatory and punitive damages. It
would be such a good idea based on compensatory justice principal. In my point of view,
it is depending on how much the cost to rehabilitate the victims and how much the
victims were aggrieved. 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. So, the $33.3 million penalty may not be excessive because the
effects of sexual harassment may cause those women psychologically and mentally.
Especially for those who were grabbed, touched, patted, hugged, touched their breasts
which was way more offensive should be given much more than rehabilitation cost
penalty.
3. Should Kroger have to pay for events that happened before it took over the chain of
supermarkets?
No, since it is considered as individual discrimination, consists of the discriminatory act
of one individual who intentionally discriminates out of personal prejudice, considered
sexual harassment, and unreasonably interfering with an individual’s work performance.
Ethically, Kroger should not pay at all because the incident occurred before Kroger even
owned Ralphs, but it depends on the acquisition contract between Kroger with Fred
Meyer and Fred Meyer with Ralphs. Kroger must pay the fine because Kroger itself has
broken their policies of zero tolerance policy for sexual harassment. Moreover, 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. It should be their full
responsibility for being punished for performing sex harassment.
4. 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?
A policy that should exist are written with zero-tolerance policy prohibiting sexual
harassment, conduct some control mechanism by facilitating employee feedback, online
complain media, and supervisory for manager. All complaints must be thoroughly
investigated and must have proper corrective actions. In order to prevent the occurrence
of similar scenarios in the future, there is a need to formulate a clear-cut procedure for
dealing with these kinds of issues. Companies must also strictly adhere to the various
provisions of human rights and integrity of employees. Ralphs should review its code of
ethics and policies and harassment to make sure that unfortunate case would not happen
again. It should create a good corporate governance and stricter sexual harassment
punishments. 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. Ralphs allowed Misiolek to continue managing store because of his capability to
achieve profits at the stores that he manages and of having an excellent bottom line
figures at those stores.