The Losses from Within

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Course: BUS 471 Research in Organizational Management
Professor: D. Thomas Napolitano
Student: Mr. Stacey Leary
Project: Term Research Paper
Due Date: 11/11/2007

The Losses From Within

BY

Stacey F. Leary

[pic]

ST. Josephs College
Brooklyn, NY

TABLE OF CONTENTS

Title Page………………………………………………...Page 1

Table of Contents………………………………………...Page 2

Introduction………………………………………………Page 3

Problem Statement……………………………………….Page 4

Hypothesis/Research Questions………………………….Page 5

Research Objectives……………………………………...Page 5

Definitions of Terms……………………………………..Page 5-6

Research Design………………………………………….Page 6-7

Data Analysis……………………………………………..Page 8-12

Literature Review…………………………………………Page 13-17

Protection Agencies &Legislation………………………..Page 17

Limitations………………………………………………..Page 18-19

Conclusion………………………………………………..Page 20-21

Recommendations ……………………………………….Page 22-23

Bibliography……………………………………………...Page 24-25

Copy of 2006 National Retail Security Survey…………..Page 26+

INTRODUCTION

Internal Theft has costs American retailers billions of dollars each year.

Retailers have tried every method known to man to eliminate or minimize internal theft. (David L. Berger, Industrial Security)

Some of the technology used to detect, dishonest employees is (EAS) Electronic

Article Surveillance, (CCTV) Close Circuit Television, Security Officers, Undercover

Store Detectors, Exception Reporting, Secret Shoppers Operational Audits, Cycle

Counts, Physical Inventory, and Source Tagging. Some retailers, especially the private

sector believe the primary losses causing inventory shrinkage are due in part to

shoplifting. Although many Retailers believe internal theft is a problem in the private

sector, they don’t believe it’s of much concern as shoplifting. Shoplifting is tangible; you

can see it. Everyday an employee is stealing from your store.

PROBLEM STATEMENT

Is Internal theft the primary cause of inventory loss? Many privately owned

retailers believe that all of their inventory losses are contributed to internal theft. There

are different types of employee dishonesty: they are as follows: the employee takes credit

card numbers from unsuspecting shoppers and sale them for a price, the employee

process a sale at the Point of Sale or Register ring up two items but place additional items

inside the shopping bag for a friend, the receiving & shipping manager who ships

product though the use UPS without anyone catching on, etc. The employee who steals

for the simple fact that there was an opportunity that presented itself, such as an unlocked

jewelry case that was left open, and the amateurs who steal even though they have money

to pay for the item although Internal theft has plagued retail businesses throughout

history, This problem should be placed in perspective. David L. Berger, Industrial

Security There is many other problems, which contribute to theft in the retail

environment Vender Fraud, Paperwork Errors, Professional Shoplifters and Internal

Theft. There is one problem in particular that in my opinion has been a profit killer

Since the beginning of time and its called internal theft.

HYPOTHESIS /RESEARCH QUESTIONS

1. Is Internal Theft or shoplifting the primary cause of inventory shrinkage or loss?

2. What causes internal theft?

3. Can employees be educated about what causes internal theft?

4. How can privately owned companies protect themselves against internal theft

5. Are employees aware of the various methods employees use to steal?

RESEARCH OBJECTIVES

1. Conduct a focus group to obtain primary data regarding internal theft in the private sector

2. Conduct secondary data on focus group findings

3. Find out how much...
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