Introduction The Costco Wholesale Corporation is one of the leading companies in the field of retail. In the present form was established in 1995 and incorporated important values and principles for further operations. The company is defining the mission and vision laid the foundation of business that has contributed to the achievement of strategic goals and good business results. Formulating code of ethics is essential for the achievement of company goals and elimination of ethical problems in business. In addition, it contributes to eliminate the problem of conflict of interest. Corporate social responsibility is defined in terms of operations and violations of ethical regulations. The paper will be examined history of the organization (mission
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Its history begins in San Diego, in 1976, when Sol and Robert Price opened first Price Club Warehouse. Later, in 1982, James Sinegal and Jeffrey H. Brotman opened Costco’s first warehouse in Seattle. In 1993, these two companies merged its operations and named new company PriceCostco, but company changed the name in Costco Wholesale Corporation, in 1997. Key people at Costco’s organizational structure are Jeffrey Brotman (co-founder and chairman), James Sinegal (founder), W. Craig Jelinek (President and CEO), and Richard A. Galanti (CFO). Brotman, Jelinek, and Galanti are members of board of …show more content…
Costco’s Code of Ethics includes four points: obey the law, take care of our members, take care of our employees, and respect our suppliers (1). Costco Wholesale Corporation has strong decisions about conflict of interest that are incorporated into Costco’s Code of ethics. According to Code of Ethics, Costco’s employees must avoid actual or apparent conflicts of interest, including creating a business in competition with the Company or working for or on behalf of another employer in competition with the Company (3). This is essence of Costco’s policy about conflict of interest. Here is important question of company’s stakeholders. Edward Freeman in his article “Stakeholder Theory of the Modern Corporation”, proposes that a corporation’s stakeholders actually include far more than the shareholders. Rather, this list includes employees, the community, suppliers, consumers, etc.; anyone who is necessary to the survival of the firm
Its history begins in San Diego, in 1976, when Sol and Robert Price opened first Price Club Warehouse. Later, in 1982, James Sinegal and Jeffrey H. Brotman opened Costco’s first warehouse in Seattle. In 1993, these two companies merged its operations and named new company PriceCostco, but company changed the name in Costco Wholesale Corporation, in 1997. Key people at Costco’s organizational structure are Jeffrey Brotman (co-founder and chairman), James Sinegal (founder), W. Craig Jelinek (President and CEO), and Richard A. Galanti (CFO). Brotman, Jelinek, and Galanti are members of board of …show more content…
Costco’s Code of Ethics includes four points: obey the law, take care of our members, take care of our employees, and respect our suppliers (1). Costco Wholesale Corporation has strong decisions about conflict of interest that are incorporated into Costco’s Code of ethics. According to Code of Ethics, Costco’s employees must avoid actual or apparent conflicts of interest, including creating a business in competition with the Company or working for or on behalf of another employer in competition with the Company (3). This is essence of Costco’s policy about conflict of interest. Here is important question of company’s stakeholders. Edward Freeman in his article “Stakeholder Theory of the Modern Corporation”, proposes that a corporation’s stakeholders actually include far more than the shareholders. Rather, this list includes employees, the community, suppliers, consumers, etc.; anyone who is necessary to the survival of the firm