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The Kroger Company acquired the Ralphs Grocery chain of 450 supermarket in 1998.Kroger had a reputation for being a well run company with progressive & exemplary employee policies. The company had a zero - tolerance policy for sexual harassment.

  • At this time a sexual harassment case involving former Ralphs manager Roger Misiolek & six female employees was ongoing
    • harassment occurred when Misiolek was manager of Ralphs' Escondido store: 1995-6
    • harassment included unwelcome touching & suggestive, vulgar, and deprecatory speech
    • when the women complained to higher management management responded by transferring the women to different stores
    • at the trial the women showed that 80 harassment complaints had been filed against Misiolek at four different stores since
  • June 1998 verdict
    • guilt: Ralphs found liable for
      • "gender harassment"
      • "failure to prevent gender harassment"
      • "malice or oppression based on a conscious disregard for for the rights or safety of others"
    • penalty
      • compensatory damages: $550,000 each plaintiff
      • punitive damages: $3.325 million each each plaintiff

Should kroger pay?

Yes, because when its happen Kroger had already acquisition Ralph. As per agreement (memorandum of association ) it has taken all of the Ralphs asset & liabilities together . So Kroger must pay for it.

According to the Kroger Policy that should be existing are written zero-tolerance policy prohibiting sexual harassment, conduct some control mechanism by: facilitate employee with feedback, online complain media, supervisory for manager, All complaints must thoroughly investigated.

Even after knowing about Misiolek misbehavior(sexual harassment) management were ignorant But Ralphs allowed Misiolek to continue managing store because of his capability to achieve profits at the stores that he manage and of achieving excellent bottom line figures at those stores. Misiolek continue his work for Ralphs for more than a year after acquired the Ralphs Grocery. So Kroger also liable for it.

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Q: Should Kroger pay now for what a ralph's employee did in the past?
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