The main cause of retail theft are employee theft and shoplifting. This paper focuses on employee theft in the retail industry in United States. Employee theft and shoplifting is a form of behavior that takes great contribution to retail theft or shortage. Every year, United States companies lose a lot money included inventory losses because of human error, dishonest employee, vendor fraud. Employee theft is a form of behavior that greatly contributes to retail shrinkage. Each year, U.S. companies lose about $36 billion to shrinkage. (Patrick K., 2013). Shrinkage refers to inventory losses caused by shoplifting, employee theft, merchandise being misplaced or damaged, and manipulation of book keeping. Although shoplifting may receive more attention,
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Hayes’s Retail Theft Triangle consist of four factors which is explanation of the act, and employee sometimes deny the responsibility for example, “it is not my fault they did not lock the save”, or “the company makes so much money already”, and they feels the right to do it. The last part of Hayes’s Retail Theft Triangle is the low perception of risk, some employee think he or she might not get caught. (Hayes, 1993). A lot employees actually believe that they will get caught so they are likely deterred from committing it. I believe that people who felt like they are not going to get caught have the highest risk of theft. This people knows the worst case is get fired and they can find jobs somewhere …show more content…
Perhaps they can buy the merchandise and resale to back to people with their employee discount. Or return the merchandise at another store for full value. (Hayes, 1993). Another skillful practice among the employee who work in the retail store for a long time. They will pass the pass merchandise across the counter to friends who may look like an ordinary customers, and is the most widespread form of employee theft. Hayes also categorizes theft as giving employee discounts to family or friends, resale the products with discount, and taking advantage of customer’s small amounts of change. (Hayes,
Hayes’s Retail Theft Triangle consist of four factors which is explanation of the act, and employee sometimes deny the responsibility for example, “it is not my fault they did not lock the save”, or “the company makes so much money already”, and they feels the right to do it. The last part of Hayes’s Retail Theft Triangle is the low perception of risk, some employee think he or she might not get caught. (Hayes, 1993). A lot employees actually believe that they will get caught so they are likely deterred from committing it. I believe that people who felt like they are not going to get caught have the highest risk of theft. This people knows the worst case is get fired and they can find jobs somewhere …show more content…
Perhaps they can buy the merchandise and resale to back to people with their employee discount. Or return the merchandise at another store for full value. (Hayes, 1993). Another skillful practice among the employee who work in the retail store for a long time. They will pass the pass merchandise across the counter to friends who may look like an ordinary customers, and is the most widespread form of employee theft. Hayes also categorizes theft as giving employee discounts to family or friends, resale the products with discount, and taking advantage of customer’s small amounts of change. (Hayes,