Part 6/9:
Another cornerstone of Costco's success is its commitment to ethical practices. The company's code of ethics emphasizes obeying the law, taking care of customers and employees, and respecting suppliers. Costco believes that by prioritizing its workforce—offering good wages, healthcare benefits, and substantial career advancement opportunities—they can boost employee loyalty and thereby create a positive shopping environment. Costco's astonishing low turnover rate—just 5%—is a testament to its successful employee engagement.
The company’s approach effectively reduces shrinkage (loss of inventory), which stands at an enviable low of 0.15% of sales. Employees tend to stay longer, creating a knowledgeable staff that enhances the overall shopping experience.