I chose to do my current event essay on Costco and the effect that their employees have on quality. Costco has a very simple and straight forward code of ethics and it involves key items that they focus on throughout their organization.
1. Obey the law
2. Take care of our members
3. Take care of our employees
4. Respect our suppliers
While each of these items has much more detail provided in their corporate mission statement and code of ethics, they are seemingly very simple and straight forward. There is not a lot of large unnecessary words or corporate speak used. To me this reflects directly on how Costco treats its employees and customers. (Statterfield, 2015) When reading about Costco, it becomes clear pretty quickly that they are focused on their employees. They have an extremely low turnover rate and pay an average wage of over $20 per hour. These two thing are almost unheard of in the retail industry. In addition, they offer company health care and the employees pay less than 10% of the cost. By focusing on their employee’s happiness and treating them well, they are making it clear to them
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Costco cares about its employees and its employees care about Costco. As a result, quality becomes the number priority for everyone. They aren’t marking their products up by huge amounts, or having flashy stores or offices. They are exactly what they say they are, a large volume warehouse retailer that sells quality products, with a reasonable markup. By keeping their employees happy, they keep their members happy, which keeps the profits coming in. Even though they could make some changes to increase profit that is not Costco’s number one priority, and as a Costco member, I couldn’t be happier with their values. By focusing on the right things, they have steadily increased their sales and stock price over the last eight years and I’m confident that trend will