BUSINESS PERIODICAL
RESEARCH
Gurleen Shah
MARCH 24, 2017
MR. FONZO / BOH 4MO
Shah1
Part A: Summary
International Foundation for Protection Officers: Employee Theft
Internal theft in organizations is defined as the stealing, use, or misuse of an employer’s assets
without permission to do so. It was recently stated that “national estimates show that 75% of all
employees steal from their employers/organizations at least once throughout their careers” (Walsh, 2000).
Employees can steal from an organization in several habits such as stealing money, getting paid for time
they did not work, theft of supplies and information, and overcharging customers and pocketing the extra
cash. Improvement in management will help control internal theft as “Employee theft is responsible for
33% of all business bankruptcies” (Walsh, 2000).
Internal theft in organizations by employees is caused by several factors. Such factors include
minimal consequences for theft committed which indirectly allows employees to continue to steal. The
employee could potentially feel underpaid or that the organization has mistreated them in some way.
Management can take preventative actions toward internal theft, establishing a “zero-tolerance
program regarding employee theft” (Walsh, 2000). To accomplish the reduction of risk of internal theft,
management should select employees carefully with background checks and valid references. Managers
on duty should supervise employee actions on a regular basis. Also, guidelines and policies should be set
for dealing with employee theft, so employees know there are consequences for their actions, such as
legal actions or termination from the organization.
Los Angeles Times: Employee Thefts Can Mean the Difference Between Profit &Loss
In this article, John Mullin realizes that his company was losing money and didn’t have
knowledge of the source so he called in Ray Boyd, the owner of a security firm. Boyd investigated the
organization and employees, and as a result he figured out that one girl had been stealing cash from the
cash register as well as merchandise, illegally taking more than $17000 from the business. She was
dishonest about the money from the register as she made up credit returns and mis-rings. Mullin turned
the girl in for prosecution.
In small businesses, these “employee thefts can mean the difference between profits and losses”
(Applegate, 1989). “Crime is contagious” (Applegate, 1989), where integrity begins at the top and
employees follow the footsteps of those who are of higher authority. For example, if the manager takes
home supplies and equipment, it is sending an indirect message to the employees, allowing them to
believe they can do the same. Boyd also stated that “prevention is cheaper than apprehension”
(Applegate, 1989) and that security measures should be taken even in small businesses. Some further
steps that can be taken by the organization for more security include checking lights and locks,
monitoring deliveries and shipments, monitoring purchases, and monitoring mail payments. All these
security audit tips can help lower internal theft, allowing the company to generate a profit.
Shah2
Harvard Business Review: Managing the Immoral Employee
Actions that are unethical are morally not correct. Defining what is moral or the difference
between what is wrong and right can be a controversial topic. “Many managers struggle to judge moral
character” (Chamorro-Premuzic, 2014). “Managers suffer from a common misconception” (ChamorroPremuzic, 2014) correlating honesty and competence as “there are many honest people who are
incompetent and competent people who are dishonest” (Chamorro-Premuzic, 2014). This misconception
causes organizations to assume that employees that have dishonest work behavior, bend the rules, and
participate in theft are easy to catch, which is not the case, and as a result “cause the economy billions
each year” (Chamorro-Premuzic, 2014).
Managers can assist in reducing the number of thefts internally in an organization through many
factors such as leading the employees to success by being a role model and setting examples for them to
follow as stated in the “meta-analytics studies, when subordinates trust their supervisors they are happier
and more productive at work” (Chamorro-Premuzic, 2014). Managers can also help engage the workers
by making them feel valued and treat them fairly. Pairing employees with ethical peers can help inspire
them and motivate them to behave more ethically. Other factors may include reducing temptation and
investing in moral training.
Overall, paying special attention while hiring employees may assist in lowering the amount of
internal thefts that occur by employees. “Past behavior is the best predictor of future behavior”
(Chamorro-Premuzic, 2014), so taking into account factors such as careful reference checks and
feedbacks can help evaluate employee integrity, increasing organizational effectiveness.
Part B: Value Analysis
Criteria
The following questions were addressed while considering the value of each article as it applies to a
business owned in Canada.
1) Is the information provided useful for businesses owned in Canada?
2) Is the information easy to comprehend for all levels of management?
3) Are the solutions applicable to all types of businesses?
4) Are there any costs associated with the offered solutions?
5) Are the solutions ethically responsible and abide by the Canadian legal system?
International Foundation for Protection Officers: Employee Theft
In order to overcome internal theft in an organization, management can gain useful and effective
advice form research articles. In the article, Employee Theft by Justin A. Walsh, it provides a thorough
explanation of the nature of theft in an organization and the changes that can be applied to prevent such
theft from occurring. However, the article does not cover all possible types of theft that may occur within
Shah3
a business. For example, employees can also steal clientele from an organization in addition to the other
thefts mentioned. The article uses language which is easy to understand and contains moderately
advanced vocabulary, which means anyone who owns a business can easily understand the content of the
article. Some of the solutions offered in the article require that a business spend money on monitoring
equipment or hire additional personnel for accounting purposes; this could change the financial stability
of the business. The solutions offered are ethically responsible as they all comply with the Canadian
Employee Act and its laws and regulations, such as “using background checks that will inform them of
the employee’s prior criminal record” (Walsh, 2000), rather than physically or verbally abusing an
employee who has committed the crime of theft. The solutions are applicable to any type of business from
a small business to a large corporation. Overall this article holds effective methods of prevention to
minimize internal theft in any organization.
Los Angeles Times: Employee Thefts Can Mean the Difference Between Profit &Loss
This article projects effective advice to reduce internal theft in an organization through
employees. As this article was written based upon events that occurred in the United States of America,
similar situations occur in small businesses in Canada, therefore the information in this article is useful
for Canadian businesses. This is due to similar environmental and economic factors which causes these
two countries to perform very similarly through a business perspective. The insight given in this article is
easy to comprehend for all levels of management. Low-level managers can help set examples for
employees and high-level management can set rules and regulations to ensure theft is minimized. The
solutions present in this business are applicable to all types of businesses as all companies can monitor
their delivery and shipment of inventory as well as purchases to ensure orders have accurate receipts.
Although these alternatives for lower theft are successful, they do have costs associated with them such as
installing different lights, and locks. The solutions are ethically responsible and do not go against the
Canadian legal system as they are approaches that change the organization and not the people, employees
are not bashed or abused. The thefts in this article are reported and sent to attorneys for prosecution.
These solutions have been tested in large and small businesses and have proven to work effectively.
Harvard Business Review: Managing the Immoral Employee
In the article Managing the Immoral Employee by Tomas Chamorro-Premuzic, the author
presented excellent arguments about struggling to judge an employee’s moral character, and how
challenging it is to replace unethical but hardworking employees. The information discussed in this article
is useful and applicable to all types of businesses in developed countries such as the United States of
America and Canada. The information was presented in ways for all levels of management to
comprehend, however; the solutions were directed to more direct line managers rather than top managers.
The solutions stated within this article were revolved around changing employee behaviors and mind set,
Shah4
all of which are dealt with low level managers and none of which require additional costs and
installments. These solutions also abide by the Canadian legal system and are ethically responsible, for
example “give employees meaningful tasks, make them feel valued” (Chamorro-Premuzic, 2014), pairing
them with ethical employees as it “will motivate them to behave more ethically” (Chamorro-Premuzic,
2014), and acting morally so your employees follow your actions. In conclusion, “immoral behaviors will
remain the silent killer of individual careers and organizational effectiveness” (Chamorro-Premuzic,
2014) unless actions are accomplished to prevent these crimes from repeating.
References
Applegate, J. (1989, September 01). When Employees Steal: Thefts can mean the difference between
profit and loss. Retrieved March 24, 2017, from http://articles.latimes.com/1989-09-01/business/fi1539_1_employee-theft
Chamorro-Premuzic, T. (2014, November 01). Managing the Immoral Employee. Retrieved March 24,
2017, from https://hbr.org/2014/05/managing-the-immoral-employee
Walsh, J. A. (2000, August). Employee Theft. Retrieved March 24, 2017, from
http://www.ifpo.org/resource-links/articles-and-reports/crime-violence-and-terrorism/employeetheft/
Article Snapshots
Article #1 (Trade Journal): International Foundation for Protection Officers: Employee Theft
Shah5
Article #2 (General Magazine): Los Angeles Times: Employee Thefts Can Mean the Difference Between
Profit &Loss
Article #3 (Academic Journal): Harvard Business Review: Managing the Immoral Employee