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Best buy employee discount abuse
The problem with discount abuse is that it is more an erosion of profit than an actual crime.
They start out "testing the water" with smaller violations and then gauge the company's identification and reaction to those violations.While all states provide for larceny, embezzlement, and fraud, nowhere will you see the crime of discount abuse.Consolidate the benefit so that is for the "associate use only." This will eliminate the defense that it was a "gift or ex masterchef contestant arrested in trying to determine the relationship of the purchaser to the employee.Consider the Definition, if your organization hasn't already done so, the decision makers should discuss discount abuse and devise and define a clear, simple and straightforward employee discount policy.Chances are that we will not.When crafting the policy, it should be written in terms that a common and reasonable person can understand.Inconsistencies in policy enforcement due to the level of the employee could invite legal liability.Consider the Cost, few people in the organization other than the CFO or Finance team probably know the true cost of this employee benefit.Most dishonest employees do not make their first act of theft their largest act of theft.
Retailers understand the cost of shrink in terms of losses as a percent to sales or to cost.
It is the act of misusing the discount that we react to, not the amount of loss to the company.
FBI Statistics from 2006 state that there were over 22 million arrests related to theft of cash or property, these figures only represents those counties that reported.
Of course, it is not as cut and dry as to say "discount abuse is against policy, so if an employee is caught, we fire them." Although less forgiving then the criminal courts, labor review boards and civil courts can still be highly critical.It makes for a difficult argument in court and an even more difficult argument trying to convince the local police to arrest the associate when the merchandise was paid for - be it for a lower price.It is difficult enough for retailers to get the attention of an overburdened(3) criminal justice system for actual cash and merchandise theft, let alone the less understandable "discount abuse." So we are left with an action that is criminal by definition, but mostly difficult.If the dollar amount or number of employee purchases is inconsequential, then changes or enforcement of the policy will have little impact on the majority of associates enjoying the benefit.Retailers can press for prosecution, but it is the police and courts who ultimately decide the charges and merits of the case.In the dynamics of today's society, terms such as "immediate family members" can be very vague.If the company cannot spot that, then maybe they will not spot under ringing or refund fraud.Our discount policy may be written with a newly-hired part-time teenager who is letting their friends come in and get merchandise with their employee discount.If we were to shade a big gray area between "crime" and "policy violation most assuredly we could name that swatch "the land of discount abuse." For retailers, especially loss prevention associates, discount abuse is at best a severe policy violation, and at worst.