Costco Wholesale Corporation Ethical Framework For Decision Making

Decent Essays
Costco Wholesale Corporation Ethical Framework for decision-making
To examine Costco Wholesale Corporation ethical framework for business decisions and identify the consequences and tradeoffs of those decisions.
Costco’s ethical posture
Costco Wholesale Corporation, the third largest US retailer, is a membership-only warehouse club that sells in high volume, low price products. Costco prides itself on keeping low prices for the consumer, as evidenced by the brief period they stopped selling Coca-Cola (11/09-12/09) until the manufacturer lowered their wholesale prices (Allison, 2009). In addition to their business methodology to provide low-cost quality goods, they also have a code of ethics to (1) obey the law (2) take care of our members (3) take care of our employees and (4) respect our suppliers (Costco Code of Ethics, nd). Corporate Social Responsibility (CSR), is a long-term key factor contributing to Costco’s success. By adhering to their mission and code of ethics, which includes low prices, high quality products, above average hourly wages, and employee health insurance coverage, they get customer and employee loyalty, low employee turnover (17%), and highly productive employees, that contributes to their bottom line: high profits (Caitlin, 2012).
Simply put, Costco’s philosophy is good pay and benefits and positive work environment, increases efficiency and ultimately the share price; 2nd Qtr. FY04 net income rose 25%, $226.8 million, 48 cents a share
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