The Business of Cosco
Posted on Monday November 24th 2008 in business
The discussion what is ethical and unethical within a company. The manager we interviewed at Costco was asked how Costco defines ethical and unethical. Here is what he said, “Anything that we do on a human level that is considered unethical is also considered unethical on a business level. It’s people first, business second and then the money will follow if we stick to this principle.”
At Costco the principle goes as follows when it comes to the ethics and the nature of management; a manager in our business always follows the law, looks out for the customers and takes care of the employees to the best of his or her ability.
The way punishments are handled varies according to the Costco policy handbook. The policy handbook clearly divides the guidelines by which disciplinary situations are to be handled. Ethical decisions at Costco are easily made and are decided by whether or not the issue at hand is accepted by society at large and there are no conflicts of interest or moral constrictions. Then if it makes business sense and your human instinct feels confident, then use these guidelines.
Social responsibility begins by obeying the law at all times, whether it’s
dealing with people, dealing with money or dealing with the environment. Also, Costco employees believe it’s important to help out the community in some sort of way. The Eugene Costco branch has ties with the United Way campaign and Children’s Miracle network. Costco managers encourage their employees to respect all people. When it comes to international business Costco relies on both consistency and adaption. They believe that establishing a comfort zone with members in America has proved to be successful and they continue to do it in other countries as well. Typically in the U.S., buildings are located close to major interstates, metropolitan areas as well as major airports. When Costco expands into new countries they are allowed to staff new buildings with only a handful of employees outside the region, the majority of employees and staff are indigenous. Costco abides by a very effective human resources department that is constantly in touch with employment and legal representatives to always be a step ahead and go above and beyond regular requirements. The company trains its employees and educates each person’s awareness about employment discrimination. They also demand objectivity that is part of corporate culture. Understanding Human Resource legislation at Costco Costco also believes it’s very important to enforce sexual harassment laws and the protection/safety of all Costco employees and customers. The company provides a continuing education program where employees read and understand the policy. Any sexual harassment complaint involving an employee, customer or vendor gets investigated immediately using implementation guidelines. Costco is fortunate in maintaining a reputation as a business that is good to be employed at, so the recruiting process is very minimal. The employees come to them. Costco has a phone screening first, then sets up two interviews. If the first two interviews go well they go to a third interview which determines if they’ve been hired or not. The interview process is extremely important because that determines how Costco chooses the right person for the job. New hires get a comprehensive orientation where a large portion of training is involved, this is mainly how Costco determines if the employee is qualified or not. Current employees get trained throughout the year with a wide variety of training topics. These training procedures are open to all employees and they can sign up on Costco’s homepage. New hires get appraised at 30 days and 90 days. All employees get an annual written performance appraisal from their managers. To maintain qualified employees, Costco pays structure, benefits and pro-employee attitude tends to promote employees incentive to stay with the company. Costco pays its employees the best wages in their industry. Employees of Costco are terminated only if they violate the written guidelines within the policy handbook. Any employee that has been with the company for at least two years would need regional vice president’s approval. Any employee that has been employed for at least five years would require the senior vice president’s approval. Downsizing at Costco rarely happens, but in the event that it does, it is done by seniority and historically has lasted for two months involving 15-20 employees.
dealing with people, dealing with money or dealing with the environment. Also, Costco employees believe it’s important to help out the community in some sort of way. The Eugene Costco branch has ties with the United Way campaign and Children’s Miracle network. Costco managers encourage their employees to respect all people. When it comes to international business Costco relies on both consistency and adaption. They believe that establishing a comfort zone with members in America has proved to be successful and they continue to do it in other countries as well. Typically in the U.S., buildings are located close to major interstates, metropolitan areas as well as major airports. When Costco expands into new countries they are allowed to staff new buildings with only a handful of employees outside the region, the majority of employees and staff are indigenous. Costco abides by a very effective human resources department that is constantly in touch with employment and legal representatives to always be a step ahead and go above and beyond regular requirements. The company trains its employees and educates each person’s awareness about employment discrimination. They also demand objectivity that is part of corporate culture. Understanding Human Resource legislation at Costco Costco also believes it’s very important to enforce sexual harassment laws and the protection/safety of all Costco employees and customers. The company provides a continuing education program where employees read and understand the policy. Any sexual harassment complaint involving an employee, customer or vendor gets investigated immediately using implementation guidelines. Costco is fortunate in maintaining a reputation as a business that is good to be employed at, so the recruiting process is very minimal. The employees come to them. Costco has a phone screening first, then sets up two interviews. If the first two interviews go well they go to a third interview which determines if they’ve been hired or not. The interview process is extremely important because that determines how Costco chooses the right person for the job. New hires get a comprehensive orientation where a large portion of training is involved, this is mainly how Costco determines if the employee is qualified or not. Current employees get trained throughout the year with a wide variety of training topics. These training procedures are open to all employees and they can sign up on Costco’s homepage. New hires get appraised at 30 days and 90 days. All employees get an annual written performance appraisal from their managers. To maintain qualified employees, Costco pays structure, benefits and pro-employee attitude tends to promote employees incentive to stay with the company. Costco pays its employees the best wages in their industry. Employees of Costco are terminated only if they violate the written guidelines within the policy handbook. Any employee that has been with the company for at least two years would need regional vice president’s approval. Any employee that has been employed for at least five years would require the senior vice president’s approval. Downsizing at Costco rarely happens, but in the event that it does, it is done by seniority and historically has lasted for two months involving 15-20 employees.
