Kroger 2012 Annual Report Download - page 50
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WHEREAS, neither our company’s Supplier Code of Conduct or its 2012 Sustainability Report addresses
human rights, a major corporate responsibility issue, and
WHEREAS, according to the Polaris Project, one of the leading organizations in the global fight against
humantraffickingandmodern-dayslavery,victimsoflabortraffickinghavebeenfoundamongthenation’s
migrantandseasonalfarmworkers,includingmen,women,families,orchildrenasyoungas5or6yearsold
whoharvestcropsandraiseanimalsinfields,packingplants,orchards,andnurseries,and
WHEREAS, Kroger’s current Code of Conduct for suppliers is based heavily on
compliance with the law (Kroger 2012 Sustainability Report, page 42 “Vendor Standards”)
http://sustainability.kroger.com/2012KrogerSustainabilityReport.pdf and U.S. agricultural workers are
excludedfrommanylaborlawsthatapplytootherU.S.workers(forexample,NationalLaborRelationsActof
1935,29U.S.C.§151atseq.;portionsoftheFairLaborStandardsActof1938,29U.S.C.§201,213),and
WHEREAS, although the company website stipulates that Kroger and its affiliates are subject to the provisions
of the California Transparency in Supply Chains Act of 2010, compliance with this law is not verified by
frequent third-party, unannounced audits,
THEREFORE BE IT RESOLVED that the shareholders urge the Board of Directors to publish a report
assessingthehumanrightsrisks,includinghumantraffickingandforcedlabor(moderndayslavery),
throughout its supply chain. The report should evaluate all policies and procedures in place to manage
identifiedrisksrelatingtothelaborpracticesofsuppliers,includinglaborbrokers.Inaddition,thereport
shouldincludethefindingsfromanyauditsundertakenandthestepstakentoresolveanyidentified
issues.
TH E B O A R D O F D I R E C T O R S R E C O M M E N D S A VO T E A G A I N S T T H I S P R O P O S A L F O R T H E
FO L L O W I N G R E A S O N S :
Krogerrecognizestheimportanceofensuringbasichumanrightsarerecognizedbythoseseekingto
do business with us. As such, Kroger has in place a comprehensive code of conduct that is applicable to those
that furnish goods or services to us, as well as their contractors. That code of conduct has been published
and is available on our website at ir.kroger.com.Ourexistingcodeofconductrequirescompliancewithall
applicable labor laws, regulations, and orders, including the Fair Labor Standards Act. In addition, the code
ofconduct:
• Prohibitschild,indentured,involuntary,orprisonlabor;
• Prohibitsexposingworkerstounreasonablyhazardous,unsafe,orunhealthyconditions;
• Prohibitsunlawfuldiscrimination;
• Requirestheworkplacetobefreefromharassment;
• Requiresworkerstobetreatedfairly,withdignityandrespect;
• Requiresthatwagesmeetorexceedlegalandindustrystandards;
• RequiresthatU.S.workersbeeligibleforemploymentintheU.S.;
• Prohibitsbribesandconductthatappearsimproperormayresultinaconflictofinterest;
• RequirescompliancewiththeU.S.ForeignCorruptPracticesAct;and
• Requiresmaintenanceofrecords(thatmustbefurnishedtousuponrequest)evidencingcompliance
with the code.
Kroger’scodeofconductdoesmorethansimplyreportingonhumanrightsrisksinitssupplychain;it
prohibits those that do business with us from engaging in the type of conduct of concern to the proponents.
Those that violate our code will not be permitted to do business with us until they comply with our code.
Assuch,wedonotbelievethathumanrightsviolationsinoursupplychainposeasubstantialrisk,thatthe
requested report would serve little benefit to shareholders, and preparation of a report would divert resources
that otherwise could be more appropriately used in the best interests of shareholders.