Investigating Theft in Retail Organizations In an industry where a 1% change in gross margin can mean millions of dollars, retailers have begun focusing greater energy on mitigating losses caused by employee theft. Employee theft has become a problem of increasing significance for retail organizations over the past few decades. In 2004, the European Theft Barometer report showed an increasing prevalence of employee theft in retail organizations, up 1% from 2003 (Technology Tackles Employee Theft, 2005). It’s been estimated that “the outcome of employee deviance and delinquency accounted for between $6 and $200 billion of organizational loss annually” (Lau, Au, & Ho, 2003). Employee theft can be loosely defined as any behavior by an employee of an entity that is intended to produce detrimental financial outcomes for the employer. This includes pocketing cash, stealing inventory, using company resources for personal gain, and other deceptive tactics. Most modern day retailers are at some level of risk as motivation and opportunity make theft an attractive choice for many employees. While large organizations have focused on this problem for several years, many small businesses have not devoted the time and resources to addressing this problem. Small businesses may be at particular risk due to a lack of high-tech internal controls that larger organizations may have. Additionally, small businesses often “frequently deal in cash – the easiest temptation of all to a dishonest worker” (Biddick, 2004). Consequently, small businesses must pay special attention to this problem in hopes of diminishing the risk (Biddick, 2004). Understanding the motivations of an employee that engages in theft can be an essential means to changing the circumstances and situations that might encourage these harmful activities. Employee motivations can be classified into three main categories: personal, organizational, and economic factors. Personal factors include such items a person’s individual viewpoint on and reactions to such items as job satisfaction, relationship with co-workers and employer, and one’s perceptions of the work environment (Lau, Au, & Ho, 2003). These are all factors that will differ based on the employee. Organizational factors refer to the controls placed in the work environment. These include the broad “Control Environment”, as referred to by the COSO fra... ... middle of paper ... ...he situation. When investigating the theft, they should perform a cost-benefit analysis, and then use both physical and testimonial fact gathering to uncover the culprit. Works Cited: Bassett, J. W. (2003). Solving Employee Theft Cases. The Internal Auditor, 60(6), 23. Retrieved May 11, 2005, from ABI-Inform Online Biddick, K. (2004). Think big when protecting small business from employee theft. Nation’s Restaurant News, 38(36), 26. Retrieved May 10, 2005, from ABI-Inform Online Lau, V., Tung Au, W. & Ho J. M. (2003). A Qualitative and Quantitative Review of Antecedents of Counterproductive Behavior in Organizations. Journal of Business and Psychology, 18(1), 73-100. Retrieved May 15, 2005, from ABI-Inform Online Shoplifting, employee theft and check fraud top retailers’ concerns. (2005). NPN, National Petroleum News, 96(11), 12. Retrieved May 11, 2005, from ABI-Inform Online Technology Tackles Employee Theft. (2005). Retail World, 58(3), 41. Retrieved May 10, 2005, from ABI-Inform Online Tryon, G. & Kleiner, B. H. (1997). How to investigate alleged employee theft properly. Managerial Auditing Journal, 12(1), 19. Retrieved May 15, 2005, from ABI-Inform Online
I believe that asset misappropriation by accounts payable fraud is occurring at Wayland Manufacturing Company due to a lack of proper internal controls. Making the company’s Chief Accountant responsible for additional day-to-day functions provides him with opportunity to commit by creating fictitious vendors with his information and then creating fictitious invoices. Newbaker can then conceal his fraud by approving the invoices for payment. Employees working at an organization for more than five years are more likely to commit fraud. Therefore, Newbaker’s six-year history with the company has made him trustworthy and very knowledgeable, which could indicate involvement in asset misappropriation. The high employee turnover could represent a past fraudster leaving before getting caught or employees refusing to continue with the asset misappropriation. In addition, the varying monthly accounts payable transactions ranging from the lowest being April 2014 and
...s selling for? What is the demand for properties similar to yours? Once you find an appropriate buyer and an appropriate price, it’s time to make the sale, and walk away with your wallet a little fatter.
In the next section of Carpenter’s argument, he discusses the failure of the U.S. to recognize the different forms of engagement options. The most constructive alternative to the current indispensable policy is the consortium model of regional actors that has the U.S. serving as the “first among equals” (pg.24) allowing the U.S. to off-load security responsibilities as well as adopting a more detached strategic role would benefit the U.S. at minimal
It has been estimated that about $52 billion a year is lost due to employee theft and that approximately 95% of all businesses experience employee theft. Employee theft amounts to 4 percent of food sales at a cost in excess of $8.5 billion annually, according to the National Restaurant Association (Neighbors 2004.) The small Business Administration indicates that 60 percent of business failures are a result of employee theft.
When selling or establishing a price for real estate people look out to real estate agents to do the work. During this work a real estate agent must prove to the homeowner that he/she is trustworthy and knowledgeable. Real estate agents should have a thorough knowledge or real estate market in their community. They should know which sides of towns and neighborhoods will fit their client’s interest, needs, and budget. Real estate agents are generally independent sales employees and knows how to sell off a good pitch to clients. Agents are allowed to advance in their career and move to higher positions. Advancement brings higher commission rates and more larger sales, both of which will increase earning and profit. This happens as agents earn expertise and contacts, and become more efficient in closing a greater number of
Shoplifting is a major problem in today. The temptation of not paying for something, just hiding it away and saving your own money is a large factor for some people. The culprit just thinks he's getting a product for free and doesn't know what he's actually doing to himself and the community. Shoplifting effects everyone, yourself and the everyone in the local neighborhood.In this essay I'm going to explain some of the circumstances of stealing from local stores, or any store. After I've been caught stealing I found out how wrong it is and how it is a disadvantage to everyone.
Last year we had a member of our executive management team terminated. He was found to have been stealing money from the company for several years to the tune of around $80,000. He was the leader of our business development team, and would purchase personal items and write them off as business expenses. Essentially what he did was hide the personal expenses in his large business expense reports. Groups provide a shield of anonymity so that someone who ordinarily might be afraid of getting caught for stealing can rely on the fact that other group members had the same opportunity or reason to steal (Robbins & Judge, 2009). This particular employee was able to hide most of his transactions as other members of the group also had large business expenses. How could this have been prevented? It is important to establish a "zero-tolerance" program regarding employee theft. Make sure that it is understood, during orientation that the company will take legal action against employees caught stealing (Walsh, 2000). In addition a team built on a covenant requires more than just a loose and vague commitment to the relationship; on the contrary, entering into a covenantal relationship requires steadfast and active commitment (Fischer, 2012) thus providing the group with a mutual
...wed for it to write the rules of the game, create well established institutions that are respected by the majority worldwide, and have inspired other countries to follow in its footsteps in search of their own version of the “American Dream”. However, the decisions that generated that American prosperity were based on the notion that concessions, accountability and investment towards the future were crucial for its later success. As seen in hindsight, somewhere throughout history, this message became heavily influence by personal gains and short term gratification. If the United States wants continue as a key player, it will need to solve its domestic qualms with in turn have and continue to affect the international community. Military dominance, cultural influence and innovation cannot sustain itself in an environment that lacks stability and long term planning.
Experience counts. Though a new real estate agent will be energetic and extra-cautious about meeting your requirements, a certain amount of experience in helps in overcoming common challenges encountered in this field. However, at times spending many years in this field doesn’t equate to high-class expertise. Asking this question will help you understand the academic and professional background of the
The Hollate Manufacturing case provided by Anti-Fraud Collaboration has well illustrated how several common issues in an organization contributed to the fraud’s occurrence. These issues can be categorized into two major groups: ethical culture (internal aspect) and internal control system (external aspect). By taking effective actions to enhance these two aspects, an organization can protect itself against the largest frauds, which result in financial and reputational damage.
Friedman, S.. (2009, April). Tough Times Prompt Spike In Employee Theft, Chubb Warns. National Underwriter. P & C, 113(16), 10. Retrieved October 14, 2010, from ABI/INFORM Global. (Document ID: 1709736101).
II. Motivation for Listening: Identity theft is becoming a major problem for consumers. Frank Abagnale now an American Security Consultant who has had a novel and a movie made after him after he had stolen the identities of an airline pilot, doctor, lawyer, and a US Bureau of Prison agent. He said that the police cannot protect consumers, people need to be more aware and educated about identity theft, you need
The prevalence of deviant employee behaviors is especially disturbing when the costs to both affected organizations and individuals are considered.
Riley, M. (2014). Missed Alarms and 40 Million Stolen Credit Card Numbers: How Target Blew It. Businessweek.Com, 1. Retrieved from DeVry Library
Identity theft impacts our society and people’s businesses. Identity thieves will use business owner’s personal information to open up new lines of credit, new accounts, and make large purchases. Unjustifiable accounts and unpaid purchases will result in collectors holding you personally accountable for the business debt until you can p...