Costco's Code Of Ethics: Business Analysis

In improving a publicly traded company’s bottom line Sarbanes-Oxley can be a positive factor. By introducing ethics codes and internal controls and building an ethical mind-set in a

The corporate world has an unfavorable view of itself by being selfish, evil, and against the average American. Companies market themselves and their products in certain ways that makes them and their products appealing to everyone and if not everyone then a certain group of people. Every company has a mission to follow and values to go by, but some companies lack ethics and morals. In this paper I am going to talk about one company that engages in ethical behavior and another that doesn’t.

Our Code of Ethics Program is designed to uphold the interests of every stakeholder of Given Company. Our mission is to uphold a high level of integrity by maintaining high company standards, values and principles to ensure the company meets its mission of being a good corporate citizen who is socially responsible. Our program provides effective guidance for daily decision making for all levels of personnel in an effort to establish and promote long-term relationships within Given Company and with our customers and community. The overall goal of the program is to be diligent in establishing a culture

“Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” (Baker, Mallen (June 8,

Most of Costco’s current home and regional office team members are home grown. This means

Social responsibility is an important part of business today. Company Q’s current attitude towards social responsibilities seems insensitive. This company has shown that profits drive the success of their business. Company Q is closing two stores in high crime rate areas due to lost revenue. It did not seem the company explored other options that would have less impact on the community and their businesses. By exploring other options they could have improved the stores profits while making an investment in the community. Company Q made no efforts to explore other ideas. By researching different options or processes Company Q could have keep its doors open.

Ethics, ethical values, and social responsibility should all work in unison in a corporate business structure. These key traits are better defined as maintaining overall good business morals, obtaining employees who possess personal ethical values, and finally to behave ethically and with sensitivity toward social, cultural, economic and environmental issues. For a business to better ensure these quality business traits a code of ethics should be adopted by the business. In the cases of Bernie Madoff and Enron, the most well-known financial scandals in history, I feel, gave a major hand in pushing business all across America to have and enforce the code of ethics.

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.

“Analytically, a corporation’s code of ethics is the documented, formal, and legal manifestation of that organization’s expectations of ethical behaviors by its employees” (Adelstein & Clegg, 2016, p. 55). The corporate credos and code of conducts provide employees with an understanding of the policies of the organization and the organizational ethical position. For these codes to be effective, all employees of the organization must be aware of them. The visibility of the code of conduct that enables the organization to be judged as ethical.

It's later CEO Paul O'Neill, empathized workplace health and safety to be one of the most important principles that all employees should abide by. Alcoa also implemented a global ethics and compliance program, and closely complied with the U.S. Federal Sentencing Guidelines and Sarbanes-Oxley Act. In order to ensure that employees were adhering to the company's integrity approach, Alcoa appointed an ethics and compliance officer who regulated the company's a global code of conduct and continuously reported top Board on maintenance of not only its prescription with code but also on its ethics and compliance training for employees, as well as other related systems.

The Industrial Revolution reshaped the world and expedited how business was conducted through the use of railroads and steam engines. Department stores soon evolved after and revolutionized how shopping was done and centralized a variety of merchandise at one central location (Tayan, 2003). With the introduction of 20th century operational management strategies such as Just in Time (JIT) and Lean Manufacturing, companies had to alter its operational efficiency and the way it conducted its business in order to grow and stay competitive. Costco Wholesale Corporation entered the wholesale club industry in the early 1980s (Tayan, 2003). The idea behind a wholesale club was to maximize profits by minimizing operational costs

Every business needs to establish a code of ethics. A code of ethics document will not only outline the companies mission, goals, and values, but it will also establish ethical business principles based on an organizations culture. Johnson & Johnson (J&J) is one of the many companies that have utilized a code of ethics

The CEO and all senior financial officers also have an additional code of ethics. They are responsible for full, accurate, and timely disclosure in reports required to be filed by the SEC. Each member is also required to report any material untrue fact that comes to their attention or any deficiency in the design/operation of internal controls. Each member must report any violation of their code of ethics or any violation of other laws, rules, or regulations (Walmart 9). This additional codes of ethics is important because it holds all of the executives accountable for their actions. This should aid in preventing fraudulent reporting by management because this code can be cited when looking at disciplinary action.

We will look at the Enron Corporation and discuss its application of Corporate Social Responsibility (CSR) or in actuality its irresponsible behavior as related to social responsibility. We will revisit what CSR is and discuss Enron’s philosophy regarding its use and function within the corporation. We will discuss the consequences of Enron’s irresponsible behavior and the far reaching effects it had on society.

In the modern world, two things are most sought after: goodness and prosperity. However, given the innate nature of mankind, and his compulsions towards greed and selfishness, complete morality is impossible. This idea has roots in the definitions and ideals found in utilitarianism, a term that will be defined later, and has led many to call business ethics an oxymoron. “In the US generally, the ethical road that is paved with good corporate intentions and constructive programs includes some bumps,” (McClenahen 60). Although bumps may exist, many companies are striving for excellence in this area as statistics show ethics are related to customer loyalty 's. These businesses have found that improvements can be found through understanding and action. Business leaders can increase morals by understand utilitarianism, leadership, correct forms of communication, and how these affect customers.