Costco Mission Statement and Code of Ethics
Costco is a leading retail brand based in the United States with an international presence spanning 11 more countries. Apart from being a membership-based warehouse chain, Costco is one of the leading rivals of Walmart and owns the Kirkland Signature Private label brand. However, Costco’s business model is a lot different from that of Walmart. Costco’s products and services are for its members. There were around 99 million cardholder members of Costco wholesale as of 2019. The company focuses on customer and employee satisfaction as well as ethical business practices. It offers a large range of quality products under its private label brand Kirkland Signature which is considered a major driver of customer loyalty for Costco wholesale. Costco had 785 stores operational in the US and other countries in 2019. The company has also established an extensive distribution network that included 24 depots in 2019. Costco’s pride is its focus on customer satisfaction and an excellent organizational culture. The brand has built a strong reputation as an ethical business and as a great employer. Its mission statement and code of ethics guide the business operations of the brand worldwide.
Mission Statement of Costco:
To continually provide our members with quality goods and services at the lowest possible prices.Costco Mission Statement.
The mission statement of Costco wholesale focuses on three things: members, quality goods & services and lowest prices. Apart from explaining its business model and its central focus in a short and succinct statement, its mission statement also highlights the customer focus of the brand. Costco is a membership-based warehouse retail chain with around 99 million members. The company places an exclusive focus on customer service and shopping experience. Apart from that, another critical focus for the company is the quality of the goods and services it sells. The company has brought a large assortment of goods and services to its customers. However, the primary focus is to offer good quality products and achieve bulk sales. Selling premium quality products at lower prices has helped the brand achieve bulk sales which have also led to high profitability. The company also earns from memberships. The Kirkland signature brand of Costco is also known for its large range of premium quality products. Together, these things spell high popularity. A few more things that the company must have included in its mission statement are its organizational culture, competition, and other stakeholders.
Costco Wholesale’s Code of Ethics:
- Obey the law
- Take care of our members
- Take care of our employees
- Respect our suppliers
- Reward our shareholders
Ethics and ethical business in everyday operations is also a central focus for Costco wholesale. Apart from ethical sourcing, the company focuses on doing ethical business and being transparent in its daily business operations. For this purpose, the company has spelled out five critical points that the employees and managers must take note of to behave ethically throughout the company’s operations worldwide.
The first important focus is on being compliant. The company has clearly spelled it out in its Code of Ethics. The first important rule is to obey the law in whichever part of the world the company operates. Apart from the local laws that apply, the business managers should take note of all the other necessary and applicable laws and do business accordingly. Compliance is not just a sign of accountability or ethical business but it also helps maintain a good image and avoid legal hassles which can otherwise cost the company a lot in the form of fines.
The rest four guidelines in the company code of ethics are targeted at the four main stakeholders which include the customers (members), employees, shareholders, and suppliers. The company is driven by customer focus and has continuously invested in improving the Costcoshoppign experience for its members. However, customer focus does not just imply better customer service for higher popularity but also to be transparent and accountable to the customer to create the highest level of satisfaction. Customers are at the core of the business and serving them in the best possible manner is a critical responsibility for all Costco employees. Next are the Costco employees whom the company considers a core part of the family and invests in their welfare. Apart from offering a great work environment and culture where they can find career growth, the company also works to maximize employee satisfaction using other means like recognition for good work and financial and nonfinancial rewards for dedication.
The company suppliers and shareholders are also some of the most important shareholders whose satisfaction matters for the company. It is why their respect and satisfaction are an important part of the company’s code of ethics. According to Costco, its aim is that the business remains responsible, resilient and relevant in accordance with the company code of ethics and mission statement. It carries out its daily operations accordingly so that apart from the customers and employees, the company can maximize happiness for all stakeholders including the community.
|Pratap, A. (2020, February 10). Costco Wholesale Mission Statement. Retrieved February 10, 2020, from https://notesmatic.com/costco-wholesale-mission-statement/
|Pratap, Abhijeet. “Costco Wholesale Mission Statement.” Cheshnotes, 10 Feb. 2020, notesmatic.com/2020/02/costco-wholesale-mission-statement/.