1. No company is safe from occupational or
business crime. An occupational crime occurs
when an individual takes advantage of his
legal occupation in order to commit an illegal
act. These crimes will almost always end in
financial gain and can be as large scale and
embezzlement or as minor as theft of office
supplies. Being aware of the trends in
business crime is the first steps in preventing,
minimizing and mitigating risks that threaten
your company.
Business
Crime
Research
Project
Project Analysis & Development
LAWS-10080-01
Melissa Gibson ID# 000330911

2. 1
Business Crime
Safety Seal Plastics Inc.
120 Nebo Rd.
Hamilton, ON L8W 2E4
905-575-9699
Overview
Although bring a printing company you may feel as though your company is at the lower end of suffering
from security risks and threats. You may feel as though spending additional funds into increasing security and
preventing loss of revenue is unnecessary. Especially since you may feel as though you’re company may not
be at a high risk of any kinds of loss. Unfortunately no company is that takes little to no security measures to
protect its assets is safe from financial loss. Although you may not be in retail who faces high risks every day
in shrinkage your company is still losing in various ways every day. In this report you will see an overview of
the different crimes that can affect your business. Understand why people are committing these crimes and
why these particular crimes are on the rise. After identifying these risks you will see the various ways that you
can begin protecting your company from these threats, which will prevent financial loss that could be
detrimental to your company.
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Introduction
No company is safe from occupational or business crime. An occupational crime occurs when an individual
takes advantage of his legal occupation in order to commit an illegal act. These crimes will almost always end
in financial gain and can be as large scale and embezzlement or as minor as theft of office supplies. Theft,
vandalizing, arson, and robbery are also threats to business. Being aware of the trends in business crime is the
first steps in preventing, minimizing and mitigating risks that threaten your company.
Environmental Schemes
Being a company that deals with varying chemicals each and every day it is your duty and responsibility to
abide and follow the environmental standards that businesses and industries are expected to comply with.
With these environmental laws and standards in place they can become very costly to businesses like yours.
Disposing of your waste water containing chemicals used in your facility, recycling the materials and proper
removal of unused chemicals and inks can become very costly on your company. It’s these costs that begin to
put your company at risk of environmental schemes
Environmental schemes can be completed by individuals, corporations, organizations and government
surrounding the protection or management of the environment. Participation in environmental schemes to
avoid the costs for environmental measures such as under reporting emissions and carbon offset. “According
to Interpol, the carbon market is attractive to criminal gangs and these schemes can be worth billions.”
(Hendricks, 2013) With environmental standards hitting a record high there has been an increase in
environmental schemes.

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There are ways that you can begin to protect your company from becoming a part of these environmental
schemes. Create a sustainability plan for the materials within your facility. Purchasing a garbage compressor
or a cleaner for your equipment will help reduce the waste going out of your building and waste water being
disposed of down your pipes. By having a plan to become sustainable business you will automatically help
reduce costs and become a “greener” facility. This will also create a more positive appearance for your
business and the clientele you work with. If you are already reducing costs there will be less need for an
employee to feel the need to participate in an environmental scheme. If you decide to become more
sustainable you can then put policies and procedures in place that will enforce your employees to use the any
machinery or equipment that have been put into place. Although it will cost you money at first implementing
sustainability within your company you will begin to see a reduction in pasts costs. Eventually the items
purchased to enforce sustainability will begin to decrease costs and increase revenue.
A simple way of preventing your company from taking part in environmental schemes is paying attention to
any significant reduction in waste costs and questioning anything that may be a red flag indicator that
environmental laws might have been bypassed for additional savings. Have another employee review the final
numbers in expenditures surrounding sustainability and waste costs. Having two different employees
reviewing the costs will reduce the chances of environmental schemes taking place. The other employee will
be able to spot any red flags regarding the waste management and costs surrounding it.
Have your company audited by an environmental professional. There are many companies that will certify
your company as “socially responsible”. This will build on your businesses reputation and reduce the chances
of an environmental schemes taking place. If the employee is aware that the company will be going through
an environmental audit they will be less likely to think they can get away with no consequence. Increasing the
chances of detection will ultimately decrease the chances of the schemes even taking place. An employee may
feel deterred from committing to this scheme and the opportunity has been greatly reduced.
Kickbacks
Choosing vendors for the materials you need to create your labels is a very important task. The quality of the
materials reflects the quality of the final product. Having an employee select vendors simply because of the
payoff or kickback they’re receiving only benefits the person receiving the kickback and your company suffers
in the process.
A kickback is completed between two parties where one person accepts some form of payment for a service
on a quid pro quo basis. “Moreover, it is implied that the two parties are cooperating, rather than one party
extorting the bribe from the other.” (Hendricks, 2013) Kickbacks can also occur when employees who have
been designated to select vendors receive items or cash in return to influence the employee’s choices
regarding the vendors being selected.
Since the materials you use in the company are used by many other employees, such as the press operators
and the press assistants, you may consider having a panel. Having a panel of the employees that come in
contact with the materials and allowing them to have a vote on which may be the best can help prevent
improper selection of vendors. If the panel vote out a vendor and somehow another vendor receives the
contract then a red flag will be seen. Also it will be more costly for the sales associate of the vendor to
provide multiple kickbacks to ensure the vendor contract, which reduces the opportunity of any kickbacks
occurring. It could even be as simple has having the vendor provide samples of the material, such as your
inks, and using them for some of your printing jobs. The press operators who are responsible for the quality
and accuracy of the imaging on the labels can write a brief description or rating on how they felt about the
product by different vendors. Then when a vendor is selected the employee will be expected to justify their
choice. Also having one employee reflects on the quality and another focused on the costs will help in the
prevention of kickbacks occurring.

4. 3
Check into your possible vendors. Take a look at their history and past customers if possible. Have one of the
customer service representatives make time to speak with past customers of the vendors and get some
feedback on the service, goods provided, pricing, etc. This will help you get a broader perspective of the
vendors that you should be selecting from. If the vendor is as strong as they say they are and their product is
as good they should have no issues with you making these contacts. Implementing these steps may costs extra
due to the extra hours by various employees, but it’s a minor cost compared to the losses due to kickbacks
occurring in the company.
Employee/Internal Theft
Employee theft is when an employee steals or misuses their employer’s assets without permission. Although
money is the most common asset to be stolen there are many other assets that can be stolen from a company
such as; time, supplies. merchandise, and information. Employee theft is responsible for about a third of the
annual $4 billion. (Divon, 2012) “According to a report released by the retail Council of Canada and
Pricewater House Coopers LLP, out of all theft related incidents, employee’s theft grew to 33 per cent, up
from 19 per cent in 2008.” (The Huffinton Post Canada, 2012) Some of the contributing factors to the rise of
employee theft is the economical struggle that has resulted in companies trying to save on costs. “Some
businesses, in an effort to reduce their costs, have lowered their pre-screening requirements and are now
hiring more ‘questionable’ employees.” (Jack L. Hayes International, INC., 2013) Another way businesses
have tried to reduce costs is by having less employee supervisors. In result of less management there has been
less supervision for employees which allows more opportunity for theft to occur. The increase of internal
theft corresponds with the decline in honesty. Our Nation is growing to be more and more dishonest every
day. Due to this decline in honesty seen throughout our Nation it has made it “easier for ‘borderline’
employees to steal and to rationalize their theft acts.” (Jack L. Hayes International, INC., 2013)
Employee time theft has also seen an increase over the years in various ways. With the different ways to steal
time from an employer it has made it much easier for those to complete the theft. Many people today don’t
even see some of their actions as actions of theft. Beating the system time clock for punching in has been
around for some time now. Having a co-worker manually sign you in on timesheets or having them punch
you in with their time card has been an issue for some time. Long lunches and extended or multiple breaks
has also been one of the more common ways for time theft to occur. “Smokers cost employers an average of
$5,816 more than non-smokers” (Donskey, 2014) With the increase of social media use and internet access
through multiple devices many employees are spending more and more time checking personal emails, online
shopping, playing games, and using social media. In fact, according to a study by Nucleus Research
“productivity drops 1.5% when staff can access Facebook at work” (Donskey, 2014)
The first step to preventing employee theft by any means is by ensuring that you have an appropriate pre-
employment screening process in place. Utilizing things such as honesty surveys will help remove individual
threats before they have any opportunity to steal from your company. When reviewing resumes do a search
online for their name and see what comes up. Most people have some type of social media and many have
poor privacy filters set up on their accounts. This will allow you to see what type of activities they may be
involved in, what type of people they spend their time with, are they family oriented, heavy drinkers, etc.
Observing people’s Twitter and Facebook accounts can reveal more than you know about an individual and
is something that can be completed free of charge. Checking references is also another way of screening
potential employees that accrues not additional costs. It’s very easy to provide false information regarding
past employment history and with the economy struggling and the unemployment rate increasing people are
more inclined to tell a few lies to get the job. Ensure that whatever pre-employment screening procedures
that are put in place is consistent. Even the most convincing prospect can be a threat in disguise. The more
trust that goes into the employee should also require a heavier screening process for the individual. This will

5. 4
help in preventing acts such as embezzlement or corporate fraud. Since generally the people practicing such
actions are those who hold positions of trust.
Implementing a fingerprint scanner for punching in and punching out each day can prevent employees from
stealing time due to lateness. Having this equipment that is specific to timing each individual will also remove
anyone’s ability to have a co-worker punch in for them. Since we removed the opportunity there is no longer
any risks for fraudulent time in and outs. It would also be suggested that all breaks and lunches be set up
through this system to allow identification of who is stealing time in other ways.
Of course many people are not stealing materials such as UV ink or PVC plastic rolls, but your business has
other supplies that may be in high demand. Surprisingly enough items such as toilet paper, paper towel, hand
sanitizers, etc. can be hot commodities to some. Keeping items such as office supplies and toiletries locked up
with a regular inventory count will prevent those who wish to steal. Keeping inventory allows for immediate
notice of missing items and recognition of a sudden spike in materials and supplies. Giving the individuals
responsible for the inventory a chance to see the red flags and bring them to the appropriate personnel’s
authority. C
There are a few ways to deter and prevent employees from stealing time by playing on the internet. One way
could be to inform you employees that all computer and account, including email, will be monitored. This
doesn’t necessarily mean you have to spend the time and money in monitoring each computer within the
facility. Having the employees think that they are being monitored will be enough, for some, to be deterred
from misusing their access to the internet. Of course if you don’t have policies regarding personal use of
computers in place yet it is highly recommended to implement either before the awareness of computer
monitoring or simultaneously. Then of course you can actually implement a monitoring system on employee’s
computer if you wish. You can also deny access to certain webpages such as Facebook, Twitter, and Ebay.
This will also greatly reduce the chance of productivity being lost to personal internet use.
With productivity being the key to what’s being lost during employee time theft companies can consider
implementing productivity incentives. These incentives will encourage employees to utilize their time more
wisely and feel as though they are being rewarded in the process. Increasing employee morale and decreasing
a fraudulent environment within the staff is an effective way to reduce your chances of becoming a target. If
employees feel as though they are respected and are recognized for their hard work and efforts they may be
less inclined to get “all that they can get from the company”.
Embezzlement & Corporate Fraud
Embezzlement can be the act of theft or misappropriation of funds placed in the individual, completing the
embezzlement, account or in the account of the employer. “The 2012 Marquet Report on embezzlement
shows that the number of major embezzlements increased by 11% over the year 2011.” (Security Newswire,
2013) Corporate fraud can include fraud by or against a company. Fraud against the company would be acts
like embezzlement. “Corporate fraud by a company may be committed by providing incorrect or misleading
information to shareholders or regulators, including financial reporting fraud-where incorrect or misleading
information is provided for individual financial gain.” (Royal Canadian Mounted Police, 2011)
Since these crimes can take time to be discovered many people feel as though they can easily get away with
the crimes they are committing. These crimes have been seen to be on the rise in Canada due to our lighter
laws and sentencing surrounding white collar crimes. This makes Canadian businesses a safer place for
embezzlement and corporate fraud to occur in comparison to American businesses. “Between 2003 and
2008, the U.S arrested and prosecuted approximately 1200 white collar criminals. In the exact time period,
Canada convicted three.” (Kstyles, 2011)

6. 5
As mentioned above having an appropriate pre-employment screening process in place will help remove any
possible threats before the opportunity can arise for the individual. Having specific controls on the
accounting systems being used can also delay and prevent such practices taking place. Having these internal
controls will safeguard assets within the business. Investing in systems that is fraud proof and is designed to
hinder such dishonesty will deter and prevent an employee from committing such crimes. Having an
accounting system that accurately document activities will be useful in the event that embezzlement or
corporate fraud takes place. Splitting responsibilities up amongst different employees will also make it more
difficult to misappropriate funds. Have an outside auditor on an annual basis to ensure that everything is in
place and make sure to have your employees aware of this procedure. Sometime the idea of something can
immediately deter someone from committing a crime.
Conclusion
Investing a bit of time and money into preventing these crimes from occurring within your business will save
thousands in the future. Being aware of your risks and the threats you may face is the first step in securing
your company’s assets and reputation. Understanding how they can occur and the chances of them occurring
allows you to identify which risks have a higher priority and require more attention. For every threat you face
there is a solution to minimizing and mitigated the issue.
No business is safe from occupational crime. An occupational crime occurs when an individual takes ad No
business is safe from occupational crime. An occupational crime occurs when an individual takes advantage
of his legal occupation in order to commit an illegal act. These crimes will almost always end in financial gain
and can be as large scale and embezzlement or as minor as theft of office supplies. Being aware of the trends
in business crime is the first steps in preventing, minimizing and mitigating risks that threaten your company.
vantage of his legal occupation in order to commit an illegal act. These crimes will almost always end in
financial gain and can be as large scale and embezzlement or as minor as theft of office supplies. Being aware
of the trends in business crime is the first steps in preventing, minimizing and mitigating risks that threaten
your company.
No business is safe from occupational crime. An occupational crime occurs when an individual takes
advantage of his legal occupation in order to commit an illegal act. These crimes will almost always end in
financial gain and can be as large scale and embezzlement or as minor as theft of office supplies. Being aware
of the trends in business crime is the first steps in preventing, minimizing and mitigating risks that threaten
your company.

7. 6
Works Cited
Divon, J. (2012). Why more employees are stealing from you. The Globe and Mail.
Donskey, J. (2014, September 22). Epayssystems. Retrieved January 18, 2015, from Time Theft: Top 7 Ways
Employees Steam Time: http://www.epaysystems.com/time-theft-top-7-ways-employees-steal-time/
Hendricks, D. (2013, October 21). smallbiztrends. Retrieved January 16, 2015, from
http://smallbiztrends.com/2013/10/rarely-known-business-crimes-scams.html
Jack L. Hayes International, INC. (2013). Retrieved January 17, 2015, from
http://cdn2.hubspot.net/hub/78380/file-244424666-pdf/docs/survey-2013-25th-annual-retail-
theft-survey-hayes-international.pdf
Kstyles. (2011, November 1). White collar crime. Retrieved January 18, 2015, from executivesource:
http://executivesource.ca/white-collar-crime/
Ministry of Community Safety & Correctional Services. (2014, December 10). Retrieved January 17, 2015,
from
http://www.mcscs.jus.gov.on.ca/english/FireMarshal/MediaRelationsandResources/FireStatistics/
OntarioFires/FireLossesCausesTrendsIssues/stats_causes.html
Royal Canadian Mounted Police. (2011, May 2). Royal Canadian Mounted Police. Retrieved January 18, 2015,
from Major Fraud: http://www.rcmp-grc.gc.ca/ccb-sddc/fraud-fraude-eng.htm
Security Newswire. (2013, May 14). Report Reveals Highest rate of Employee Theft in 5 Years. Retrieved January 18,
2015, from Security Magazine: http://www.securitymagazine.com/articles/84347-report-reveals-
highest-rate-of-employee-theft-in-5-years
The Huffinton Post Canada. (2012, October 31). Retrieved January 17, 2015, from
http://www.huffingtonpost.ca/2012/10/31/retail-employee-theft-rising_n_2049992.html