Perceptions of Risk and Potential Consequences of Committing Employee Theft

• In Event: Understanding and Addressing White-Collar Crime

Abstract

In the US, employee theft accounts for 43% of inventory losses, which represents $2.3 billion more than the lost revenue due to shoplifting (Global Retail Barometer 2015). Like in any other crime, white collar offenders tend to commit crimes where the benefits to be obtained outweigh the risks of being caught (Cornish and Clarke 1986). Understanding how individuals form their perceptions of risks is an important aspect of decision making. Risk perceptions can be thought of as intuitive judgments made by citizens (Slovic 1987), and these perceptions may have an impact on how the offenders respond. Employees that steal have specialized access to money and goods, and operate in an environment where they are trusted. Additionally, when detected, these crimes are usually dealt with internally at the company (Hollinger and Davis 2006). These special circumstances might contribute to a reduced fear of getting caught and being sanctioned. To date, there have been limited studies examining employees’ perceptions of risk in their determination of whether or not to commit these offenses. Using a sample of employed college students, this paper will analyze how perceived risks and consequences of committing employee theft influence the likelihood of engaging in that behavior.

Authors

• Alexis Norris, California State University, San Bernardino

• Nerea Marteache, California State University, San Bernardino

• Citlalik Ibarra, California State University San Bernardino