Costco's Extravagant Labor Costs Help Stockholders
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Title: Costco's Extravagant Labor Costs Help Stockholders

Essay Details:

Subject: Business
Author: Howard C
Date: January 17, 2015
Level: University
Grade: A
Length: 4 / 1018

Essay text:

The immutable law of this land is to maximize profit; that is, to increase sales or to decrease costs. Multi-billion dollar corporations categorize employee wages and insurance as costs and cut them in an effort to maximize profits. However, Jim Sinegal’s Costco provides a refreshing exception to this corporate cannibalism. Costco sees the respectable treatment of employees as an investment instead of an unnecessary cost. At an average employee wage of $17 an hour, Costco’s business strategy has Wall Street analyst Bill Dreher of Deutsche Bank lamenting that at Costco’s, “it’s better to be an employee or a customer than a shareholder...

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