Prevention of Employee Theft Essay - 1093 Words

Prevention of Employee Theft Why do employees feel free to steal? Most employee theft occurs because it is too easy. What can a company do to prevent employee theft? What should a company do to employee thieves? The following paragraphs summarize a few ideas. Employee theft is a crime that is costing U.S. companies a great deal of money. Employee thefts are growing in number, partially because the perpetrators really do not see themselves as criminals and rationalize what they are doing in much the same way as taxpayers rationalize income tax fraud. Employee theft is one of many personnel problems that is easier to prevent than to solve. Prevention should begin before an applicant becomes an employee. Some theft†¦show more content†¦Other techniques include limiting the likelihood of collusion by regularly changing work-team assignments, strengthening internal control, and separation of duties. A phony theft might also be set up to see how quickly managers and staffers report it. Another way that might prevent employee theft is through surveillance. In the early 1990s Long John Silvers Restaurants, Inc. installed surveillance cameras in their stores after having a history of internal losses. The cameras proved to work during one of many instances. One instance included a young cashier who had stolen over eighty dollars in less than two hours while working at the Long John Silvers drive-through window. Unfortunately for her, in the ceiling, over the drive-through register, a surveillance system had recorded her every move. When presented with the videotaped evidence during a security interview, the cashier confessed to stealing more than $500 in five weeks. The employee later pled guilty to felony theft charges. She was ordered to make restitution to Long John Silvers for the full amount of her confessed theft. The restaurant recovered the stolen money and avoided the greater expense of prosecuting the theft (Price). When a company finds evidence of employee theft, company officials mustShow MoreRelatedPrivate Security1629 Words   |  7 Pagesservice that is used by most organizations in the United States is Loss Prevention. Loss Prevention entails numerous of responsibilities for the company or business that hires them. The services provided by a Loss Prevention group can be organized within the company or they can be hired from an outside source. Regardless, of where the service comes from, their job duties remain the same, protect the company. Loss prevention is based on the principle of integrity, which means doing the right thingRead MoreAn Unwritten Code Of Ethics1312 Words   |  6 Pagesby every employee, however, is nearly impossible. With such a large array of misconduct that can occur, it is important that every employee holds each other accountable for any situation. Whether the situation involves theft, fraud, or simply any other un-ethical behavior, awareness must be of utmost importance. 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This incidence is referred to as redistributive crime. There is a loss prevention (LP) department in retail companies that is specifically tasked with minimizing product loss, commonly referred to as inventory shrink. LP is implemented to reduce the preventable loss of a company’s as sets by utilizing technologies that mitigate theft and fraud. Retailers continuously adapt their technologies toRead MoreEmployee Theft Essays1056 Words   |  5 Pagesa victim of employee theft? Did you know that employee theft has cost from small businesses to major Fortune 500 companies over $37.14 billion in 2010 alone? Fraud against business includes the theft of physical assets such as cash or inventory. Essentially there are two types of inventory fraud: physical loss and financial statement fraud. Inventory shrinkage is the term use in accounting to describe the loss of inventory. Loss of inventory might be due to shoplifting, employee theft, damage, etcRead MoreBusiness Ethics And Law : Legal And Ethical Issues1213 Words   |  5 Pagespeople. If the consequences cause unhappiness than the decision is wrong. In this case, Wal-Mart acted unethically by allowing workers to be cheated out of compensation for time worked. The consequences did not benefit either the employer or the employee. Although by underpaying the employees, the shareholders would gain more profits, however, the majority of the employees would result in unhappiness. Therefore, making this result unethical. The employees, on the other hand, preceded ethically byRead MoreShe Snoops to Conquer: Surveillance and the Right to Privacy Essay example1432 Words   |  6 PagesEmployers these days are becoming more and more concerned about employee theft and are making sure that they minimize these kinds of activitie s by using sophisticated and high-tech devices. However, it is essential to be honest about the actions and it is equally important to provide privacy in any kind of workspace. In case 9.3, Jean Fanuchi is a manager of a shopping mall in jewelry department. Since there were many recent incidents of theft and shoplifting, she decided to install hidden cameras andRead MoreThe Costs Of Loss Prevention Essay950 Words   |  4 PagesDifferent Costs of Loss Prevention Detailed below are the costs of LP and, from them, we can see that when weighed against the marginal benefit, it is a relatively low cost because LP budgets in 2014 averaged to be less than 1% of total 2014 sales and LP prevented more than that in shrink (Hollinger et al., 2015: 6). All of the percentages listed below are from the most recent National Retail Security Survey and they represent the different percentages of the loss prevention budget (Hollinger et alRead MoreHas Data Security At Work Gone Too Far?1276 Words   |  6 Pages Has Data Security at Work Gone Too Far? I. Introduction: a. Employers are forced to balance internal controls, employee morale, and data security. In professional environments where employees have access to sensitive consumer information, the employer protect must protect against employee misuse while not appearing oppressive and creating negative morale. According to the search database at Privacy Rights Clearinghouse (2014), there have been 932,729,111 reported consumer data records intentionallyRead MoreFraud, Corruption, Theft, Misappropriation, And Fraud1738 Words   |  7 PagesThere is no specific definition for fraud if looked at from different perspectives. The term fraud is used to describe acts such as deception, corruption, theft, misappropriation, false presentation, bribery, fault partnership, forgery etc. Some may even describe fraud as practical process of deception to gain an advantage, or to cause loss to another entity or individual. While some people might not even anticipate to commit fraud, others might do so if the y contemplate they have a way to be covert