Costco Wholesale Corporation

Costco

Barbre-Anne Wasdin

May 4, 2016

Lynn University

Costco

Costco Wholesale Corporation

     Costco Wholesale Corporation is recognized as one of the leading wholesale warehouse club in the United States. Costco was started with one single store in Seattle in 1983 and six years topped $3 billion in sales (Fortune 500, 2014). Costco was the first business to go from zero to $3 billion in sales in less than six years. They operate warehouses of global membership that convey superiority, brands of goods at prices lower than any other traditional wholesale. Its approach to trade varies on high volume transactions with inventory soon return, which makes it possible to offer lower prices, product options limited with a broad range of products from brand name and label, which will assist the seller stock active growth during a slow economy. They concentrate on the sale of private merchandise and brands at a reduced price, often at a very excessive quantity. Costco is distinguished from others by distributing limited articles, defined in every manufactured goods line while their rivals as BJ and Wal-Mart present numerous goods.

     Costco is well-known for its generosity to their employees. Regardless of the weak economy and financial encounters to the Commerce, Costco compensates its hourly personnel a mean of $21 per hour. Of the Costco employees, eighty-eight percent have the company’s health insurance plan. Costco regards their employees competently in the idea that a contented employment atmosphere will bring about a more lucrative company. Costco is also known for being far more of an employee-focused corporation than many other Fortune 500 companies. As a result of offering decent earnings and excellent benefits for employees, the company has designed a workplace philosophy that appeals to active, passionate, and capable employees. Costco even operates a website www.costcobenefits.com for its employees to find out about their benefits plan.

     Costco's mission is “to continually provide our members with quality goods and services at the lowest possible prices” (About Us, n.d.). For the mission to be attained, they must follow the codes of conduct set by the corporation. Costco’s code of ethics is prudent for a company to abide by. The first code is to obey the law. They deem they must perform their business in complete observance with the laws of every area where they do business. The second code is to take care of their members. They want to ensure they keep their members happy. They believe they will be a success simply if they do not infringe upon the faith their members have encompassed to them, and that trust spreads to every part of their business.  

     A third relevant code is to take care of their employees. They believe that their employees are their most valuable asset. They offer multiple benefits to their employees such as a safe and healthy work environment, career opportunities, and advancement from within the company. Fourth code is to respect their suppliers. They believe their contractors are associates as well in the enterprise, and for Costco to succeed as a business, then they must flourish with them. If the four philosophies of their code of ethics are followed all through the company, then the fifth value and vital objective will be fulfilled by rewarding their shareholders.

     According to Stone (2013), “Promote From Within strategy is supported by Jim Sinegal, the founder of Costco.” Costco does not utilize business school graduates but promotes personnel who operate the sales floor in their warehouses and supports the employee throughout graduate school. Seventy percent of their warehouse supervisors began at the firm by pushing the carts in the store and working on the cash registers. Employees hardly ever resign: The corporation’s turnover rate is five percent amongst the personnel who have worked there for over a year, and less than one percent of the administrative positions. In return for its substantial earnings and benefits, Costco acquires one of the greatest faithful and industrious labor force in all of the retailing companies, and, probably not coincidentally, the least reduction (employee theft) statistics in the business It always has been and remains to be Costco's policy that workers should be capable of enjoying a work setting exempt from all practices of unlawful employment discrimination.