Jim Sinegal is the founder, chairman, and former longtime CEO of Costco (Nasdaq: COST). Known for his integrity and fondness for Costco’s $1.50 hot dogs, Sinegal grew Costco from a single warehouse to a now-$39 billion chain.

Last month, The Motley Fool’s own founder and CEO, Tom Gardner, ventured to a Costco warehouse in Florida for a conversation with Sinegal on business, leadership, and company culture. In the clip below, Sinegal explains why Costco likes to promote from within its own ranks. (A transcript is provided below; running time: 4:29.)