Employee Theft

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Revictimization is the final consequence of employee theft. Revictimization refers to the occurrence increased opportunity of other types of victimization for the business after the initial report of employee theft. It’s at this point, where businesses that have seen employee theft are at a higher risk of assaults, burglaries, and shoplifting. Unfortunately, many believe the employee theft is inevitable. This is the cause for many to avoid any measure to prevent the theft from occurring. However, once a company has been victimized, they become keener on screening for signs of other abuses (Payne & Gainey, 2004).

Each journal and dissertation’s findings as to what motivates a person to steal from a company also offers how to prevent these incidences from happening in the first place. Similar to the motivation behind theft, each set of research offers a different viewpoint as to what is necessary to prevent employee theft. As accounting students, we have learned over the years on the main prevention techniques such as the separation of duties, adequate documentation, and physical safeguards (Buckhoff, 2002). However, others have researched into ways to further prevent the occurrence of theft within a company. Research by Gross-Schaefer, Trigilio, Negus, and Ceng-Si (2000) found new ways to prevent employee theft in which it was determined that a three step, proactive systems would be best in order to prevent employee theft. This includes the creation of an ethical environment starting from the top down and focuses on fairness and ethics, development of a company mission statement by a process that involves everyone in the organization, and implementing a personal ethics training program (Gross-Schaefer, et al., 2000). Jeffrey Alstete of the Hagan School of Business also researched into the matter and came to the conclusion that there are actually three categories he recommends in preventing employee theft: installation or increased usage of surveillance cameras, improved control systems, and better hiring practices (Alstete, 2006).

Gross-Schaefer, et al.’s (2000) new proactive approach takes prevention by step. Step one is the creation of an ethical environment in which the beliefs and attitudes that contribute to the unethical behavior can be countered by establishing a working environment based on honesty and integrity. This must however be from top management without regard for their salary or the hierarchy. By laying a strong foundation, it keeps the overall attitude for honest and ethical work. Next must be a mission statement involving everyone. Mission statements are the guiding principle of the company and must be in harmony with the values and norms of the employees of an organization. This can help employees feel more involved within an organization and transform a detached relationship to a committed. Lastly, the firm must implement an ethics training program. A program such as this offer an opportunity to analyze, interpret, and determine the consequences and benefits of ethical decisions encouraging employees to develop their competencies (Gross-Schaefer, et al., 2000).

In contrast, we look at Jeffrey Alstete’s (2006) research, which takes on a more physical assertion to the idea of prevention. His first step in prevention is increased usage of surveillance cameras. Although it can be costly, if a person presumes themselves to be on camera, it can stop them right in there tracks before the theft occurs or even catch them after the fact. Secondly, he recommends improved control systems. This goes hand in hand with the separation of duties accountants learn. The more checks and balances there are between duties, the harder it’ll be to steal. Thirdly, he proposes better hiring practices. Carefully screening a new job application as well as further background and reference checks is crucial if the new hire will be handling money. Background checks would presume to include their police record as well if the applicant has one. The main point of these increases is to establish trust with a new hire whom is basically unknown to the ownership. Although there should still be some doubt that they may steal (Alstete, 2006).

There is not a one hundred percent “right way” to absolute prevent employee theft within a company. With an ever changing and innovating environment, there will be risk of new ways of theft that will be necessary for management to monitor. Gross-Schaefer, et al.’s recommendations with these specific measures can help to further eliminate this possibility of employee theft.

In conclusion, considerable research has been done throughout the years to combat the multibillion dollar issue of employee theft. It is necessary for companies to notice the trends in the research in order to understand what motivates their own employees to steal from them. The world is always changing and always innovating. New technologies such as the internet, electronic banking, securities trading and others have made it easier for thieves to steal and harder for businesses to keep up. Numerous controls are available to discourage any theft from occurring. Neglecting to implement any of these preventive controls will only further tempt those who are already tempted. Employers are encouraged to take the necessary steps discussed here in an effort to reduce the costly and detrimental ethical issue of employee theft.

References

Alstete, J. (2006). Inside advice on educating managers for preventing employee theft. International Journal of Retail & Distribution Management, 34(11), 833-844.

Buckhoff, T. A. (2002). Preventing employee fraud by minimizing opportunity. The CPA Journal, 72(5), 64-65

Clark, J. P., & Hollinger, R. C. (1980). Theft by employees. Security Management, 24(9), 106.

Dorminey, J. W., Fleming, A. S., Kranacher, M., & Riley, R. A. Jr. (2010). Beyond the fraud triangle. The CPA Journal, 80(7), 17-23,3.

Gross-Schaefer, A., Trigilio, J., Negus, J., & Ceng-Si Ro. (2000). Ethics education in the workplace: An effective tool to combat employee theft. Journal of Business Ethics, 26(2), 89-100.

Niehoff, B. P., & Paul, R. J. (2000). Causes of employee theft and strategies that HR managers can use for prevention. Human Resource Management, 39(1), 51-64.

Payne, B. K., & Gainey, R. R. (2004). Ancillary consequences of employee theft. Journal of Criminal Justice, 32(1), 63-73.

Sauser, W. I. Jr. (2007). Employee theft: Who, how, why, and what can be done. S.A.M.Advanced Management Journal, 72(3), 13-25,2