What can other companies learn from Costco’s socially responsible and ethical business practices?

As a Fortune 500 company, warehouse retailing giant Costco has successfully positioned itself as a progressive retailer that serves its membership base with quality products and services at low prices. Costco also has built a reputation for attracting, taking care of, and retaining its employees. With operations in eight countries and more than 225,000 employees globally, Costco has taken cutting-edge employer actions such as extending health-care coverage to part- time workers and raising its average pay rate. The national average hourly pay rate for retail workers is $11.39. Costco’s starting hourly pay is $11.50 but the average hourly pay for most of its employees is around $21.00. More than 85 percent of Costco employees have company-offered health-care coverage. Costco CEO Craig Jelinek believes that if employees have good health care and make a living wage, more money is pumped into local economies. It is also interesting to note that more than 70 percent of Costco’s employees are promoted to higher positions with the company via Costco’s promote-from-within policy. Additionally, Costco seeks to hire veterans and diverse team members who represent the communities where stores are located. Beyond its positive workplace culture, Costco has implemented broad sustainability practices aimed at minimizing environmental impact, including waste management, food donations, using sustainable fisheries, protecting animals, and building LEED-certified warehouses. All of these factors contributed to landing Costco at #5 on the Forbes list of “America’s Best Employers” and #86 on its list of “World’s Most Valuable Brands.”