Investigating Theft in Retail Organizations Essay -- Stealing Thieves

investigating Theft in retail Organizations In an industry where a 1% change in gross margin can mean millions of dollars, retailers rich person begun focusing greater energy on mitigating losses caused by employee theft. Employee theft has become a problem of increase significance for retail organizations everywhere 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). Its been estimated that the outcome of employee deviance and delinquency accounted for between $6 and $200 jillion of organizational loss annually (Lau, Au, & Ho, 2003). Employee theft can be more often than non defined as any behavior by an employee of an entity that is intended to garden truck detrimental financial outcomes for the employer. This includes pocketing gold, stealing inventory, using company resources for personal gain, and nigh other deceptive ta ctics. Most modern day retailers are at some level of riskiness as motivation and opportunity make theft an attractive choice for many employees. While large organizations have center 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 ill-tempered risk due to a lack of high-tech internal controls that large 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 essential 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 way 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. P ersonal factors include much(prenominal) items a persons individual viewpoint on and reactions to such items as job satisfaction, relationship with co-workers and employer, and ones perceptions of the work surroundings (Lau, Au, & Ho, 2003). These are all factors that will differ based on the employee. organisational factors refer to the controls placed in the work environment. These include the broad require Environment, as referred to by the COSO fra... ...he situation. When investigating the theft, they should perform a cost-benefit analysis, and indeed use both physical and testimonial fact gathering to put out the culprit.Works CitedBassett, J. W. (2003). Solving Employee Theft Cases. The Internal Auditor, 60(6), 23. Retrieved may 11, 2005, from ABI-Inform OnlineBiddick, K. (2004). Think large-minded when protecting small business from employee theft. Nations Restaurant News, 38(36), 26. Retrieved May 10, 2005, from ABI-Inform OnlineLau, V., Tung Au, W. & Ho J. M. (200 3). A Qualitative and Quantitative Review of Antecedents of harmful Behavior in Organizations. Journal of Business and Psychology, 18(1), 73-100. Retrieved May 15, 2005, from ABI-Inform OnlineShoplifting, employee theft and cover fraud top retailers concerns. (2005). NPN, National Petroleum News, 96(11), 12. Retrieved May 11, 2005, from ABI-Inform OnlineTechnology Tackles Employee Theft. (2005). Retail World, 58(3), 41. Retrieved May 10, 2005, from ABI-Inform OnlineTryon, 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