Rules That Can Help Eliminate Employee Dishonesty

1. Prosecute employees who are caught stealing. Settling for restitution and an apology is inviting theft to continue.
2. Rotate security guards. Rotation discourages fraternizing with other employees who may turn out to be dishonest. Rotation also prevents monotony from reducing the alertness of guards.
3. Price items by machine or rubber stamp, not by handwriting.
4. Permit only authorized employees to set prices and mark merchandise.
5. In cases of returns and refunds, insist on a merchandise inspection and approval by someone other than the person who made the sale.
6. Pay special attention to cashiers when they are surrounded by clusters of people.
7.  Be alert to the use of over ring slips to cover up shortages.
8. Make a dependable second check of incoming materials to rule out the possibility of collusive theft between drivers and receiving personnel. Do not allow a truck to approach the loading platform until it is ready to load or unload.
9. Do not allow drivers behind the receiving fence. Discourage drivers from taking goods or materials from the platform by the following devices: install heavy gauge wire fencing between bays, with the mesh too fine to provide a toehold; mount closed circuit television cameras overhead that will sweep the entire platform; and locate the receiving supervisor's desk or office to give him or her an unobstructed view of the entire platform.
10. At the loading platform, do not permit drivers to load their own trucks, especially by taking goods from stock.
11. Make sure that every lunchbox, toolbox, bag or package is inspected by a supervisor or guard as employees leave the plant.
12. Insist that all padlocks be snapped shut on hasps when not in use to prevent switching of locks.
13. Control keys to padlocks. Never leave the key hanging on a nail near the lock where a worker can borrow it and have a duplicate made while he or she is away from work.
14. Do not allow trash to accumulate in, or be picked up from, an area near storage sites of valuable materials or finished goods.
15. Supervise trash pickups and inspect disposal locations and rubbish trucks at irregular intervals for the presence of merchandise when you have the slightest reason to suspect collusion between employees and trash collectors.
16. Control receiving reports and shipping orders (preferably by sequential numbering) to prevent duplicate or fraudulent payment of invoices or padding or destruction of shipping orders.
17. Make sure that receiving reports are prepared immediately upon receipt of shipment. Delay in making out such reports can be an invitation to theft or, at best, result in record keeping errors.