The Costco Business Model

Few of the ways Costco displays the value of putting employees first is by compensating them above the national average pay grade, investing back in the community and being environmentally sensitive. In 2015 they contributed over $31 million to various organizations. Some other areas are as follows:
Employee first: Costco has displayed these value in several ways and they believe in following through on their commitment to the community. They believe in hiring locally to give back to the community. Costco business model is to attract and retain great employees. The way they can accomplish this model is by compensating their employees well above the minimum wage; they also provide benefits. In turn the business reduces expenses as the turnover is minimized and employee productivity maximized, commitment and loyalty is high. https://www.costco.com/employee.html. The value placed on people gives Costco that winning and a very successful edge in the world. The author of ROI of Human Capital: Measuring the Economic Value of Employee Performance states, “Success Requires Commitment; Commitment Breeds Success The history of sustained excellence in business shows that commitments were made to a long-term core strategy.” (Fitz-Enz, J. 2009).

Although they are unable to meet all the needs, they will all it takes to meet as many needs as possible. They only work with 501(c) (3) nonprofit organizations, which meet their giving guidelines and focus areas. Grants are focused on programs that support children, education and health and human services. The United Way, Children's Miracle Network Hospitals and the Red Cross are examples in Costco’s charitable giving.