THE KROGER CO. | Report on Risks Related to Religious Accommodations at THE KROGER CO.

Status
Omitted
Previous AGM date
Resolution details
Company ticker
KR
Lead filer
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Public health
Filer type
Shareholder
Company sector
Consumer Staples
Company HQ country
United States
Resolved clause
Shareholders request the Board of Directors of Kroger assess and issue a report within the next year, at reasonable cost and excluding confidential information, evaluating how it oversees risks, both legal and non legal, related to religious accommodations for dispensing or providing counseling on certain drugs, and detailing any strategies beyond litigation and legal compliance the Company may deploy to mitigate these risks.
Supporting statement
Kroger is one of the largest retail pharmaceutical providers in the United States, serving millions of American families each year through its pharmacies. Pharmacists and pharmacy staff are increasingly asked to dispense or counsel on products and services that raise serious moral or religious concerns for many Americans. These include abortion inducing drugs like mifepristone and misoprostol, emergency contraception, some other forms of birth control, physician assisted suicide medications in some states, and gender transition related drugs such as puberty blockers and cross sex hormones. Employees with sincerely held religious beliefs may object to dispensing or facilitating access to these products. Under Title VII of the Civil Rights Act, employers must reasonably accommodate such beliefs unless doing so would cause the employer undue hardship, a standard that the Supreme Court recently strengthened in Groff v. DeJoy in 2023. This change is welcomed by many. The Viewpoint Diversity Score’s Freedom at Work Survey recently found that 60% of employees feared reprisal for expressing their religious or political views at work, and over half feared the same for private social media posts. Many other laws and regulations underscore the particular importance of this issue for healthcare workers. Federal conscience protections like the Church Amendments and Coats Snowe Amendments, numerous state conscience clause laws, and other state and federal constitutional provisions and statutes protecting religious exercise all protect healthcare professionals, which in many cases include pharmacists and other pharmacy staff. Failing to accommodate such beliefs can result in discrimination claims, EEOC enforcement actions, and costly litigation. A pharmacy perceived as hostile to religious conscience rights can also face significant reputational damage from customers, political backlash from red states, and heightened scrutiny from a federal administration that has already taken numerous steps to platform religious liberty as a central issue. Recently, the U.S. Office of Personnel Management issued guidance that all federal employees be allowed “personal religious expression … to the greatest extent possible” under law. Companies that appear to disregard or inadequately accommodate employee conscience rights jeopardize their eligibility for federal contracts or grants. It can also create human capital and other operational disruptions. Companies that do not proactively implement clear, well communicated policies and adequate training for managers are more likely to harm employee morale, artificially limit their talent pool, and apply their policies inconsistently. The divisive nature of issues like abortion, contraception, medically assisted suicide, and transgender drug regimens, and strongly held views around them, make accommodating sincerely held religious beliefs not only a matter of legal compliance, but one of brand management and operational stability.

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