Kroger caught in middle of nation's cultural, social debates
In an era of culture wars and polarized politics, the nation's largest grocer finds itself targeted from all sides.
Just look at five issues being put to nonbinding votes for shareholders by activist investors at Cincinnati-based Kroger, during its upcoming annual meeting Thursday. (Hint: The company wants them all voted down.)
How much does Kroger pay men, women and racial minorities?
Arujna Capital wants Kroger to disclose its median pay by race and gender, noting its own research finds Black workers in the U.S. earn 64% of what white workers are paid and women earn 83% of what men are paid, among other findings.
“Actively managing pay equity is associated with improved representation. Diversity in leadership is linked to superior stock performance,” the boutique investment firm said in the proxy measure before shareholders.
Kroger officials replied the measure is unnecessary because its “compensation practices promote diversity, inclusion and fair pay across our workforce.”
Protect workers' conservative viewpoint against discrimination
Conservative group the National Center for Public Policy Research wants Kroger to issue a report about the potential risks of not guarding against discrimination based on “viewpoint" and "ideology,” which are not protected by federal law.
“There is ample evidence that individuals with conservative viewpoints may face discrimination at Kroger,” the group said in the proxy, noting the retailer has pulled merchandise with pro-gun and other political statements, while also issuing an “allyship guide” toward treatment of LGBTQ+ people. The group cited news articles of "woke backlash" at Kroger from Fox News and other conservative outlets.
Kroger − which is one of the largest employers in the world with 430,000 workers − said it promotes diversity and inclusion and understands “our associates have a wide range of viewpoints,” so such a report is unnecessary.
How bad is smoking for Kroger shareholders?
The Sisters of St. Francis of Philadelphia want Kroger to commission a report that discloses the public harm from the tobacco products it sells. They cite Centers for Disease Control and Prevention data that estimates more than $600 billion in U.S. economic costs from the effects of smoking.
“Kroger undermines its commitments to promoting good health and ultimately the interests of its diversified shareholders,” the resolutions read in the proxy.
Kroger officials oppose the measure, saying it follows existing laws and regulations “to limit the sale of these items only to customers who are legally permitted to purchase them” and “we also believe in our customers’ freedom of choice.”
Can you tell us who Kroger gives money to − again?
The Louis B & Diana R Eichold Trust wants Kroger to list charitable gifts of more than $10,000 on its website.
“It would be unfortunate if a charitable contribution resulted in lower employee morale and shareholder interest, much less a loss of potential revenue,” the resolution reads. “Fuller disclosure would provide enhanced feedback opportunities from which our Company could make more beneficial choices.”
Kroger officials say they already provide that information in annual reports by its two foundations: The Kroger Co. Foundation and The Kroger Co. Zero Hunger | Zero Waste Foundation.
Between the two, the foundations direct more than $300 million (including fundraising from associations and customers). More than 75% of corporate funds and customer donations are directed to the Feeding America-affiliated network of local food banks, pantries and agencies in communities where the grocer operates.
Cut back use of plastic packaging
Nonprofit shareholder advocate As You Sow wants Kroger to produce a report describing how the company could reduce its plastics use in alignment with the findings of a 2020 Pew Charitable Trusts report. In its proxy, the group also wants Kroger to include its risk of financial liability should “governments require them to cover the waste management costs of the packaging they produce.”
Kroger, which has 33 production plants nationwide and produces a third of its house-branded products that generate a total of $30 billion in annual sales, said the report is unnecessary as it already has plans to cut its plastic packaging.
“Kroger has focused on improving the environmental attributes of product packaging for many years,” the company said, adding last year it found 40% of its house-branded product packaging met its definition of recyclable when measured by weight.
Watch the voting at the annual meeting:
Kroger's annual meeting is virtual and will be held at 11 a.m. Thursday. Shareholders of record will be able to vote and ask questions online during the meeting.
For the latest on Kroger, P&G, Fifth Third Bank and Cincinnati business, follow @alexcoolidge on Twitter.