Kroger 2014 Annual Report Download - page 59
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PricewaterhouseCoopersLLPhasadvisedtheAuditCommitteethatneitherthefirm,noranymemberof
thefirm,hasanyfinancialinterest,directorindirect,inanycapacityinKrogeroritssubsidiaries.
SH A R E H O L D E R P R O P O S A L
( I T E M N O. 4 )
Wehavebeennotifiedbyelevenshareholders,thenamesandshareholdingsofwhichwillbefurnished
promptlytoanyshareholderuponwrittenororalrequesttoKroger’sSecretaryatourexecutiveoffices,that
theyintendtoproposethefollowingresolutionattheannualmeeting:
“ T H E K R O G E R C O M P A N Y
HU M A N R I G H T S R I S K A S S E S S M E N T - 2 0 15
RESOLVED,thatshareholdersofTheKrogerCompany(“Kroger”)urgetheBoardtoreporttoshareholders,
atreasonablecostandomittingproprietaryinformation,onKroger’sprocessforidentifyingandanalyzing
potential and actual human rights risks of Kroger’s operations and supply chain (referred to herein as a
“humanrightsriskassessment”)addressingthefollowing:
• Humanrightsprinciplesusedtoframetheassessment
• Frequencyofassessment
• Methodologyusedtotrackandmeasureperformance
• Natureandextentofconsultationwithrelevantstakeholdersinconnectionwiththeassessment
• Howtheresultsoftheassessmentareincorporatedintocompanypoliciesanddecisionmaking
ThereportshouldbemadeavailabletoshareholdersonKroger’swebsitenolaterthanOctober31,2015.
SU P P O R T I N G S T A T E M E N T
Aslong-termshareholders,wefavorpoliciesandpracticesthatprotectandenhancethevalueofour
investments.Thereisincreasingrecognitionthatcompanyrisksrelatedtohumanrightsviolations,suchas
litigation,reputationaldamage,andprojectdelaysanddisruptions,canadverselyaffectshareholdervalue.
Kroger,likemanyothercompanies,hasadoptedasuppliercodeofconduct(SeeTheKrogerCompany
StandardVendorAgreement)buthasyettopublishacompany-wideHumanRightsPolicy,addressinghuman
rights issues and a separate human rights code that applies to its suppliers. Adoption of these principles would
beanimportantfirststepineffectivelymanaginghumanrightsrisks.Companiesmustthenassessrisksto
shareholder value of human rights practices in their operations and supply chains to translate principles into
protective practices.
TheimportanceofhumanrightsriskassessmentisreflectedintheUnitedNationsGuidingPrinciples
onBusinessandHumanRights(the“RuggiePrinciples”)approvedbytheUNHumanRightsCouncilin2011.
TheRuggiePrinciplesurgethat“businessenterprisesshouldcarryouthumanrightsduediligence…accessing
actual and potential human rights impacts, integrating and acting upon the findings, tracking responses,
andcommunicatinghowimpactsareaddressed.”(http://www.business-humanrights.org/media/documents/
ruggie/ruggie-guiding-principles-21-mar-201l.pdf)
Kroger’sbusinessexposesittosignificanthumanrightsrisks.Asofyear-end2012,Krogeroperations,
including supermarkets, convenience and jewelry stores, are located in over 40 states, with suppliers in
countriesaroundtheworld,includingIran,ChinaandMalaysia.Thecompany’ssupplychainiscomplexand
globalandunsuccessfullabornegotiations,supplychaininterruptionsandcivilunrestcouldadverselyaffect
thecompany’sabilitytoexecuteitsstrategicplan.
Weurgeshareholderstovoteforthisproposal.”