Why Do Employees Lie, Cheat, and Steal on the Job?
September 2006These 25 reasons for employee crimes are those most often advanced by authorities in white-collar crime (criminologists, psychologists, sociologists, risk managers, auditors, police, and security professionals):
The following list is excerpted, with permission, from Fraud Auditing and Forensic Accounting, 3rd Edition (Wiley, Sept. 2006).
To be respected and thus complied with, laws must be rational, fair in application, and enforced quickly and efficiently. Company policies that relate to employee honesty, like criminal laws in general, must be rational, fair, and intended to serve the company's best economic interests. The test of rationality for any company security policy is whether its terms are understandable, whether its punishments or prohibitions are applicable to a real and serious matter, and whether its enforcement is possible in an efficient and legally effective way.
But what specific employee acts are serious enough to be prohibited and/or punished? Any act that could or does result in substantial loss, damage, or destruction of company assets should be prohibited.
The greatest deterrent to criminal behavior is sure and evenhanded justice; that means swift detection and apprehension, a speedy and impartial trial, and punishment that fits the crime: loss of civil rights, privileges, property, personal freedom, or social approval. Having said all that, why is it that, despite the dire consequences of criminal behavior, we still see so much of it? Apparently because the rewards gained often exceed the risk of apprehension and punishment; or, stated another way, because the pains inflicted as punishment are not as severe as the pleasures of criminal behavior. The latter seems to be particularly true in cases of economic or whitecollar crimes. Many times, if not most, when a fraud is detected, the extent of punishment regarding the perpetrator is to be fired, sometimes without even paying back the fraud losses. So while potential white-collar criminals might believe they might get caught, the ramifications are below some acceptable threshold.
Are white-collar criminals more rational than their blue-collar counterparts? If so, they probably weigh the potential costs (arrest, incarceration, embarrassment, loss of income) against the economic benefit—the monetary gain from their crime. If the benefit outweighs the cost, they opt to commit the crime—not just any crime, but crimes against employers, stockholders, creditors, bankers, customers, insurance carriers, and government regulators.2006 John Wiley & Sons. Used with permission.