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Embezzlement/employee theft.(required reading)
Definition
The Federal Bureau of Investigation (FBI) defines embezzlement as the "misappropriation or misapplication of money or property entrusted to one's care, custody, or control. "What distinguishes embezzlement from other types of theft is the violation of financial trust between the owner of the money or property and the offender. Embezzlement laws first emerged in England as a response to the inadequacies of larceny statutes that required that property be taken from another's possession.
Theft by employees is one of the most prevalent and costly problems faced by today's business organizations, either private or public. It includes, but is not limited to, "the removal of products, supplies, materials, funds, data, information, or intellectual property."
How It Happens
The ways that an employee can steal from an organization depends on a number of factors, including the type of money or properties that have been entrusted to the individual, and the access to company funds that the individual might be allowed because of their position. For example, a department store cashier might steal from a cash register, fail to ring up purchases and pocket the money, give purchases to friends and family for considerable discounts, or take merchandise from storage rooms or receiving areas. Other employees with more access within the company might cheat on expense accounts, or misappropriate funds through billing, inventory, or payroll schemes.
While some research has found that theft by employees is typically a solitary event, the influence of co-workers on theft behavior has been shown to have an enormous impact on such deviant behavior. In his classical work on theft, Mars not only shows how the mores of theft are accepted within a particular group, but how the group works together to create a system of theft that is beneficial to the workers and does not hurt the company. A strong argument is also made for the effects of informal sanctions; those that did not comply with the theft culture were often ostracized and pressured to leave the job.
One of the difficulties in developing policy to combat embezzlement and other types of employee theft is that the rationale behind the offenses can vary greatly. While a large number of crimes can be attributed to opportunity or the economic need of the offender, loss incurred through the actions of employees can also be a response to poor working conditions, dissatisfaction with management or compensation, or pressure from co-workers. The subsequent measures that organizations need to take, therefore, include not only deterrence-based security technology, but also a comprehensive program of proactive initiatives to ensure employees are generally satisfied with their environments.
- Preventing employee theft: a behavioral approach.
- Magazine article from: Business Perspectives Taylor, Robert R. Prien, Kristin O. June 1, 1998 700+ words
...organizations in today's environment is employee theft. When we first addressed this...250 billion a year is lost to employee theft. * About $26 billion a year...all business failures are due to employee theft. * About 20 percent of all businesses...
- Employee theft is growing problem in St. Charles County.
- Newspaper article from: St. Charles County Business Record, MO April 6, 2001 700+ words
...have observed some form of theft in the workplace. Typical employee theft, although not new, has advanced...many, if not more, of these thefts. And they lament that somewhere...can be directly linked to employee theft. And he explained that whether...
- Employee Theft Causes Half of Losses, Security Expert Tells Retail Conference.
- Newspaper article from: Knight Ridder/Tribune Business News June 5, 2003 700+ words
...billion in retail losses each year, employee theft accounts for nearly half of the...the University of Florida, said employee theft has risen since the last survey...cost in billions a year (like employee theft)," Hollinger said. "It...
- Employee theft poses serious and growing threat to business profitability.
- Magazine article from: Colorado Springs Business Journal (CO) January 2, 2004 700+ words
...policies and penalties regarding employee theft can save companies dollars and...security problems, including employee theft of trade secrets and other intellectual...More money goes missing from employee theft than from any other type of theft...
- Employee theft can ruin firm.
- Newspaper article from: San Antonio Express-News (San Antonio, TX) January 14, 2006 700+ words
...attorneys agree that internal fraud, employee theft or embezzlement are common, costly...Department of Justice estimates that employee theft is growing by as much as 15 percent...with up to 75 percent of all employee theft going unnoticed, according to...
- Employee Theft Expected to be Number One Grinch This Holiday Season; 2000...
- Press release article from: Business Wire November 20, 2000 700+ words
...concerns over shoplifting and employee theft. According to the recently released...more than $13.2 billion from employee theft alone last year. The annual study...firms. According to the study, employee theft had the largest increase of almost...
- Employee theft has business on a security offensive.
- Magazine article from: Pittsburgh Business Times Aikens, Tom March 19, 1990 700+ words
Employee theft has business on a security offensive...programs on the offensive. The problem is employee theft and the offensive measure is a collective...officer manager, EMA members provide employee theft reports, along with shoplifting and...
- Rationales for employee theft in hospitality: excuses, excuses.(Report)
- Magazine article from: Journal of Hospitality and Tourism Management Poulston, Jill January 1, 2008 700+ words
...costly and difficult to control. Employee theft in America was estimated by Niehoff...retail crime was attributable to employee theft, resulting in a loss of around...or a $10 note. When multiple thefts of minor items occur, a dilemma...
- Employee theft: what you don't know can hurt you: employee theft has serious...
- Magazine article from: Franchising World Reifler, Natt O. October 1, 2008 700+ words
...variety of measures to prevent employee theft, often at considerable costs...chains, however, commonly address employee theft incidents with demand letters...these losses are attributed to employee theft alone. Over the years, retailers...
- CRIME AND PUNISHMENT; WITH SHOPLIFTING AND EMPLOYEE THEFT ON THE RISE, NEW...
- Magazine article from: Footwear News Silverman, Dick November 15, 1999 700+ words
...retailers from theft is financially...while employee thefts averaged $1...incident. But employee theft cost shoe stores...number of internal thefts is alarming. Studies...store security. Employee theft at shoe stores...
