Costco Business Ethics

According to Omidyar & Branson (2016), business ethics are called as corporate ethics which is a set of rules that define the right and wrong behaviour. From the research, ethics are a form of applied ethic that can be used to evaluate whether the conduct of the people are considered acceptable and appropriate. Besides, business ethics are the collective values of a business organization that can be used to evaluate whether the behaviour of the collective members of the organization are considered acceptable and appropriate. In the most basic term, a definition for business ethics boils down to knowing the difference between right and wrong and choosing to do what is right.

Business ethics is the application of right and wrong, good and bad in a business setting.

In the business world companies will run into times that they have to make decision based on ethics. This outcome may not be illegal, but unethical, which is just as important when running a business. Business Ethics is the concept of distinguishing between right and wrong and then making the right choice. The right choice may not always be the easiest or best alternative for the organization financially, but it is the greatest option for the company and its shareholders overall. The idea of business ethics is important to create trust between consumers, the community, and others involved with a given organization.

The business outlook for Costco Wholesale Corporation (Costco or “the company”) is bright. Costco as we know and love today started out as Price Club, which was founded by legendary business man Sol Price. In 1975, Price was forced out of a chain of discount department store company he founded called FedMart. Shortly after, he drew up the concept of a "warehouse store" retail model on a napkin. Costco and its subsidiaries began operating in 1983 in Seattle Washington. It engages in the operation of membership warehouse in the U.S., Canada, Puerto Rico, United Kingdom, Mexico, Japan, Australia and Spain. It also has majority-owned subsidiaries in Taiwan and South Korea. The company operates as an international chain of membership warehouses. The product line of Costco to their customers includes food (dry and packaged), sundries (tobacco, beverages, cleaning supplies), hardlines (major appliances, electronics, beauty aids), fresh food, softlines (apparel, home furnishings), and ancillary and other (gas stations, pharmacy, food court). By using a membership format, and strictly controlling the entrances and exits of its warehouses, Costco has lower inventory losses than those of other discount retail operators. The company recorded revenues of $116,199 million in the financial year ended August 2015 (Fiscal Year 2015), an increase of 3.2% over Fiscal Year 2014. The operating profit of the company was $3,624 million in Fiscal Year 2015, an increase of 12.5% over

Costco is the second largest retailer in the world. My family and I have been shopping at Costco for over 10 years now and there’s something different about the wholesale warehouse experience. It’s the vast expanse of products sitting on wooden pallets stacked on two story shelves; the employees constantly reorganizing, inventorying, preparing and welcoming you; and the very fact you’re an exclusive member because you pay $55 annually to be able to shop there. Costco strives to create that ethically transformed organization and embodies that in their mission statement – “To continually provide our members with quality goods and services at the lowest possible prices (Fanfare, 2016).” This is Costco’s selling point but they incorporate core values that “serve as enduring, guiding principles that reflect what organizational members find intrinsically valuable (Johnson, 2016).” Costco has created this ethical culture and it reflects in the ideals of its members while inspiring and promoting ethical behavior (Johnson, 2016). This is probably why the average customer, such as myself, keeps coming back.

What is business ethics? It is formally defined as the critical, structured examination of how people & institutions should behave in the world of commerce. Specifically, it examines self-interest and profits, versus moral values and ethics. The Ford Pinto was a new stylish car, which gave Ford an ultimatum.

Most people assume that the term ethics refers to the business as a whole. Business ethics apply to the individuals working within businesses. Each individual's action within the company affects the entire company, not just the individual. When any person associated with a business acts ethically and responsibly, it helps the entire organization.

To have ethical practice in businesses it needs to begin with “whether our behavior is moral or immoral and deals with fundamental human relationships”. (Lawrence & Weber, 2014, p. 69). The foundation of ethical behavior has to be laid early in life and developed/built on it; this guidance can come from various sources such as, religion, family, school, neighborhoods, friends, etc. “The totality of these learning experiences creates in each person a concept of ethics, morality, and socially acceptable behavior.”

Wal-Mart has a very low pay scale the average “Wal-Mart associate makes only $8.81per hour” according to a study published by Forbes News Article, (Ungar 2013). Wal-Mart’s full-time employee schedule is considered to be 34 hours per week with a salary of 15 thousand dollars per year average. Employees that work full time at Wal-Mart still live below the

Business ethics refers to the consideration of moral decisions and responsibilities in the process of operating a business. Business ethics, practiced throughout the deepest layers of a company, become the heart and soul of the company 's culture and can mean the difference between success and failure. Values drive behavior and therefore need to be consciously stated, but they also need to be affirmed by actions. Ethical business environments are created with foundations of integrity, accountability and commitment.

Business Ethics is a set of moral principles applied in the commercial world. Business ethics provide guidelines for acceptable behavior by organizations in both their strategy formulation and day-to-day operations. An ethical approach is becoming necessary both for corporate success and a positive corporate image. Following pressure from

Ethics are principles of behaviour that distinguish between right and wrong. Resnik (2011) defines ethics as” a method, procedure, or perspective for deciding how to act and for analysing complex problems and issues” (p.1). People face ethical decisions; however, People working in business frequently face ethical decisions. Business ethics is the evaluation of business activities and behaviour as right or wrong (Society for Business Ethics, 1991).

Business Ethics are defined as “moral principles that guide the way a business behaves” (Businesscasestudies, 2017). In order for any business or individual to act in an ethical

Business ethics is a vital element to the growth and success of any business. To be ethical means to have a system of moral principles. Ethics alone is a branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions. To have business ethics you would take the meaning of ethics and apply it to the things that go on it the work place. We are going to take

“As a branch of ethics the field of business ethics is interested in how judgments of right and wrong, good and bad, moral obligation and responsibility, rights and duties, and the like, are made and justified” (Gill, David). As a descriptive enterprise, business ethics is an analytical exercise in understanding and explaining how people and businesses make their ethical judgments and decisions. If your business does not carry the proper ethics it cannot thrive. It takes the necessary steps within the business management to enforce these ethics upon their business. The field of business ethics is interested in more than just social and environmental responsibilities but those are certainly critical component areas.