How Does Theft Affect The Community?

What are the consequences of employee theft?

Beyond these economic losses, few studies have considered other non-economic consequences that occurred as a result of employee theft.

Lipman and McGraw (1988), however, identified several related costs to society including business failures, lost jobs, higher taxes, and higher prices..

How does shoplifting affect the economy essay?

The stores get about three percent of every dollar purchased for an item. So that means they don’t make a whole lot of money out of profit. Every shoplifter that takes a product also is taking the profit, which costs the store money, so that is also a set back and that puts them more in debt.

How many shoplifters get caught?

Shoplifters say they are caught on an average of once in every 48 times they steal. They are turned over to the police 50 percent of the time. Only 3 percent of shoplifters are thought to be “professionals.” But these so-called professionals are responsible for at least 10 percent of all shoplifting dollar losses.

How does retail theft affect a community?

There is a loss of tax revenue for state and federal government as sales, goods and services taxes are affected by retail theft. The impact of this to the community is often seen in reduced government spending on education (schools), health and aged care services and roads etc.

Does stealing hurt the employees?

While the shoplifting obviously affects the income of the store, it also impacts employees directly. Their three month bonuses, called “MyShare,”are cut. Tyler Santella, a new employee, said that “it really pisses me off” when people steal from the store and employee pay is impacted.

How can stealing affect your life?

These can include family trouble, mental health issues, or delinquency. Children who steal often have trouble making and keeping friends, have poor relationships with adults, or have issues with trust.

How can we prevent theft in the workplace?

Here are some things you can do:Know your employees. Be alert to key indicators of potential theft such as: … Supervise employees closely. … Use purchase orders. … Control cash receipts. … Use informal audits. … Install computer security measures. … Track your business checks. … Manage inventory and use security systems.More items…•

How much does shoplifting cost the economy?

Retail theft, or “shrink”- a loss of inventory due to factors such as shoplifting, employee or supplier fraud and organized retail crime – cost retailers over $112 billion worldwide last year, according to the 2012-2013 Global Retail Theft Barometer.

Is kleptomania a crime?

Kleptomania is an enigmatic condition in which crime (theft) forms a part of its diagnostic criteria. Not surprisingly, it is commonly used by the defence counsel for mitigation of theft and related offences, especially for repeat theft offenders.

Why it is bad to steal?

Stealing causes a big problem for a family when the thief is caught. Store owners have to spend more money to protect their things, which makes prices go up for paying customers. Kids sometimes don’t trust each other with their belongings. People don’t feel as safe when they’re worried about someone stealing.

How does employee theft affect the economy?

A new study by Hiscox, a global specialist insurer, found that U.S. businesses affected by employee theft lost an average of $1.13 million in 2016. Small and midsize businesses were hit disproportionately, representing 68 percent of the cases. Their median loss last year was $289,864.

What does stealing do to the economy?

Reduced Profits The most direct financial effect of shoplifting is that it eats away at your revenue and profits. Each item lost to a shoplifter cost money for your store to buy, but you get no revenue from it.

Is stealing a psychological problem?

Kleptomania (klep-toe-MAY-nee-uh) is the recurrent inability to resist urges to steal items that you generally don’t really need and that usually have little value. Kleptomania is a rare but serious mental health disorder that can cause much emotional pain to you and your loved ones if not treated.

What are the effects of stealing?

Legal consequences for theft usually include:Criminal fines, which are usually proportionate to the amount stolen; higher theft amounts may result in greater fines.Jail or prison sentences, which may increase or decrease in severity according to the amount stolen.Restitution for some theft cases.More items…•

How does Theft impact a retailer?

Stealing from a retail store damages the company’s profits in direct and indirect ways. The immediate loss of product for sale hurts the company’s ability to offer items to consumers willing to buy them, while the costs to replace stolen goods increases production costs.