Saturday, February 16, 2013

Pay Practices Say More About Respect for People Than Words Say

Lean Leadership Lessons from Costco Wholesale
"To continually provide our members with quality goods and services at the lowest possible prices. In order to achieve our mission we will conduct our business with the following Code of Ethics in mind:
  1. Obey the law
  2. Take care of our members
  3. Take care of our employees
  4. Respect our vendors
  5. Reward our shareholders
If we do these four things throughout our organization, then we will realize our ultimate goal, which is to reward our shareholders."

I really like Costco's respect for people.

One thing to note is while "Costco pays the highest wages in the industry with benefits that are very good for any industry." to "workers" they don't pay the exorbitant executive pay most of the companies that scrimp on paying non-executives.  As I have said before I don't believe you can take executives seriously on claims they believe in respect for people when they pay themselves like nobles and workers like serfs.

The difference between real respect for people and just words is evident at places like Costco and Trader Joe's.  Customer's and owners benefit from organization that truly practice respect for people. Related: Focus on Customers and Employees - Respect for People

No comments: