Loss Prevention Through Internal Control Introduction White collar crime is a growing problem in today's business environment. Motivation arises from all the weaknesses known to humanity, aggravated by such things as personal debts and losses, living beyond one's means, and the spirit of an age that glorifies wealth with no questions asked.
Employee motivation is something that management can influence in limited ways.
Prospective employees can be thoroughly screened, and assistance can be provided to employees who are experiencing financial or other problems. Management can also insist on high standards of integrity and reinforce those standards by their own conduct, thereby setting a moral tone that does much to influence thought and conduct throughout the organization. While not downplaying the importance of proper motivation as a deterrent to crime, this booklet focuses on reducing opportunities for crime. In particular, it focuses on the deterrent effect of strong internal controls. Most property crime is the result of a more or less rational decision, a weighing of the potential gain from stealing against the risk of being caught.