5 Internal and External Relations

KEY TERMS

• internal relations

• external relations

• customer driven

• value added

• marketing

• market segmentation

• target marketing

• return on investment

• intranet

• designated spokesperson

• prosecution threshold

Objectives

After studying this chapter, the reader will be able to:

Internal and External Relations

This chapter explains why it is so important to recruit people and organizations to assist with security and loss prevention efforts. With practitioners being asked to handle increasingly complex problems, often with limited resources, it is vital that all possible sources of assistance be solicited. Strategies are delineated here for improving relations between the loss prevention department and those groups that loss prevention serves and works with in reducing losses. Internal relations refer to cooperative efforts with individuals and groups within an organization that a loss prevention department serves. External relations refer to cooperative efforts with external individuals and groups that assist in loss prevention objectives.

In reference to examples for the internal relations chart (clockwise, Figure 5-1), upper management dictates loss prevention goals. Information technology (IT) and loss prevention departments are increasingly working closer together because of threats and hazards facing IT systems. A risk management department in an organization can provide the foundation for prioritizing risks and developing broad strategies to deal with risks. Both the human resources and loss prevention departments should coordinate activities relevant to applicant screening and workplace violence. When labor problems (e.g., unrest, strike) are anticipated, losses can be minimized through cooperative efforts. In addition, labor union contracts and labor law stipulate limitations on loss prevention activities (e.g., the questioning of suspect employees). Loss prevention practitioners are wise to tune in on feedback and criticism from formal and informal employee groups. By listening to and satisfying employee needs (e.g., clean restrooms, a well-run cafeteria, and recreational programs), with other departments, an organization can reduce losses. When new facilities are being planned, architects, engineers, and loss prevention practitioners can jointly design prevention strategies into the plan and thereby save money by not having to install equipment after construction is completed. Trade secrets and other proprietary information must be under strict security, especially in research and development. Accountants and auditors can help create cooperative strategies against losses. Furthermore, the loss prevention manager should be given an opportunity to review their findings. At various times, a loss prevention department may require legal assistance. Because loss prevention personnel are the backbone of the program, the manager should do everything possible (e.g., professional development, give praise and pay raises, and institute participatory management) to satisfy their needs. Good rapport with the external relations department ensures that appropriate security and loss prevention information is released to outsiders and that this information is in the best interest of the organization. Communicating with management in general is vital for many reasons. For instance, the objectives of the loss prevention program can be transmitted to all employees via meetings with management. Feedback from management also assists in planning loss prevention strategies that do not hinder productivity or profit.

FIGURE 5-1 Internal relations.

In reference to examples for the external relations chart (clockwise, Figure 5-2, beginning with law enforcement agencies), public safety agencies are an essential ingredient of private sector loss prevention programs. Good communications and cooperation are important in case crimes occur or a disaster strikes. Business continuity planning should consider a variety of resources in the community (e.g., police, fire, medical). Educational institutions can provide expertise, research assistance, and potential employees. The loss prevention manager may want to serve on a college advisory committee or speak to classes to spread the word about loss prevention. When possible, the news media should be recruited to aid in loss prevention objectives. Other businesses and loss prevention peers with similar problems can be a good source of ideas. Insurance companies can provide information to improve prevention strategies while reducing premiums. Independent auditors and certified public accountants can point out weaknesses in the loss prevention program to protect against fraud and other crimes. When people (e.g., customers) visit the premises, they should not be seriously inconvenienced by loss prevention systems (e.g., access controls), but at the same time, losses must be prevented. Friendly dialogue and cooperative efforts should be emphasized when government administrative agencies are involved in a loss prevention program. To enhance all the preceding relations, the security and loss prevention practitioner is wise to emphasize two-way communication and understanding, and partnering for mutual benefits.

FIGURE 5-2 External relations.

Benefits of Good Relations

The following are reasons why good internal and external relations are important to a loss prevention program. Good relations

Good internal and external relations enhance the effectiveness of security and loss prevention programs.

Internal Relations

Customer-Driven Security and Loss Prevention Programs

Like well-managed companies, security and loss prevention programs should be customer driven through constant contact with customers who provide feedback and direction for improvements in performance. Customers should be made aware that they are receiving value from the services provided. Corporations often use the term value added. It means that all corporate departments must prove their value to the business by translating expenditures into bottom-line impact. Security departments must go beyond preparing a report of security accomplishments. Examples are as follows: The investment in training security officers in first aid and CPR provided life-saving assistance in the past 12 months to three employees and one customer. The hiring of a bad check specialist recovered three times her salary. The expenditures for workers’ compensation fraud investigations saved hundreds of thousands of dollars. The investment in security technology saved personnel costs.

Marketing

Marketing consists of researching a target market and the needs of customers and developing products and services to be sold at a profit. Marketing also is considered the study of consumer problems as opportunities.

The concepts of marketing are universally applicable. Market segmentation divides a market into distinct groups of consumers. When one or more of the market segments is chosen for a specific product or service, this is known as target marketing. To illustrate, for security programs, market segmentation within a corporation can yield the following groups: executives, women, salespeople, production workers, and truck drivers. Once the market is segmented, a protection program can be designed for each target market. Research and risk analyses will produce a foundation from which to satisfy the protection needs of each type of customer. For those security programs that are so general in nature that few customers find them appealing, marketing strategies may be the solution to generate interest. Loss prevention influence over a target group or groups is better than no influence at all (Purpura, 1989: 141–148).

These seven strategies contain a heavy emphasis on marketing and are designed to produce a high-quality security program (Wozniak, 1996: 25–28):

1. Identify all internal and external customers of security services and determine what the customers want and how security can tell whether they are satisfied with the quality of the services rendered.

2. Focus on the customer and his or her perspective. Security should avoid an “us versus them” viewpoint.

3. Facilitate teamwork by meeting with representatives of all internal departments to discuss security issues and to seek solutions.

4. Listen and be receptive to customer concerns. In one hospital, employees complained about the need to enter their departments outside regular business hours. In response, the security department used its technology to customize access control for each department.

5. Develop definitions. Ensure that customers and security share each group’s definitions of security and loss prevention.

6. Set priorities among customers. One hospital ranked its customers as follows: patients or outside customers, employees, and employees’ families.

7. Take action and be prepared to constantly adapt to new circumstances.

Do you think marketing concepts can really assist a security manager, or does marketing consist of theories that have no practical value in the real world?

Surveys Improve Security Services and Add Value

McCoy (2006: 44–46), a director of security, writes of how he improved security through the use of internal surveys. He notes that security departments are in a difficult position with customer relations because security must enforce policies and conduct investigations. However, he seeks positive views of security from customers by ascertaining customer needs and fulfilling these needs. McCoy recruited an outside firm to conduct surveys and collect data. The firm provided benchmarks for internal customer service because of its experience with hundreds of clients. As McCoy’s department received feedback from the research, specific changes were put in place for continuous improvement that was followed by more research. Survey questions focused on access, response time, expertise, courtesy, value, and other subjects. The response rate was about 30%. Surveys often produce unexpected results, and in McCoy’s case he learned that background screening generated numerous complaints because of the length of time required for the check. The average time to complete a check was 14 days, and many managers resented the delay when bringing in a new employee. The security department processed about 4,000 screenings annually, with a denial rate of 4%. To improve performance, the security department began to use a management system model for continuous improvement; background screening was reduced to 5 days by selecting a vendor that emphasized speed, besides accuracy. This accomplishment was highlighted in a security awareness letter prior to a survey. Survey data was used to justify requests for additional personnel and other resources, and to require security certification to enhance skills. In essence, through internal surveys, the security department improved performance and internal relations.

International Perspective: Market Research to Improve Crime Prevention

Crime prevention by residents in the community is not a unitary construct; it is composed of various types of preventive activities (Hope and Lab, 2001: 7–22). Research from a British crime survey revealed that citizens take part in five clear groupings of preventive activities. An understanding of the groupings, and the characteristics of citizens who choose the groupings, can assist those in the public and private sectors who market crime prevention programs. Here are the groupings:

• Evening Precautions: Actions taken at night to protect against attack, such as special transportation arrangements.

• Self-Defense: Taking self-defense classes and carrying weapons and personal alarms.

• Neighborhood Watch: Membership in a watch group and marking property.

• Technological Security: Burglar alarms and timed lights.

• Fortress Security: Door and window locks and grills.

This British research showed that people’s use of various preventive methods represents their different perceptions of crime, their “routine activities,” their aims and needs, and to a lesser extent, demographic variables. Only particular types of people will adopt certain crime prevention methods, and more extensive research is needed on this topic.

Corporate security practitioners should consider surveying employees to ascertain what is on their minds (i.e., understanding customers) as input for selecting the best possible security methods. Survey questions can focus on perceptions of security and safety on and off the premises, their “routine activities,” and their needs. Such information provides a foundation for market segmentation and target marketing.

Human Relations on the Job

Getting along with others is a major part of almost everyone’s job. Many say it is half of their job. The result of such effort is increased cooperation and a smoother working environment.

These suggestions can help a person develop good human relations:

1. Make getting along with others as well as possible a conscious goal. Cooperation increases productivity.

2. Say hello to as many employees as possible, even if you do not know them.

3. Smile.

4. Think before you speak.

5. Be aware that nonverbal communication such as body language, facial expression, and tone of voice may reveal messages not included in your oral statements.

6. Listen carefully.

7. Maintain a sense of humor.

8. Try to look at each person as an individual. Avoid stereotyping (i.e., applying an image of a group to an individual member of a group).

9. Personalities vary from one person to another.

10. People who are quiet may be shy, and these people should not be interpreted as being aloof.

11. Carefully consider rumors and those who gossip. Such information often is inaccurate.

12. Remember that when you speak about another person your comments often are repeated.

13. If possible, avoid people with negative attitudes. A positive attitude increases the quality of human relations and has an impact on many other activities (e.g., opportunity for advancement).

14. Do not flaunt your background.

15. Everybody makes mistakes. Maintain a positive attitude and learn from mistakes.

Management Support

Support from senior management is indispensable for an effective loss prevention program, and it can be enhanced through good human relations. Frequent dialogue between loss prevention practitioners and senior management should be a high priority. One method of gaining the interest of management is to show loss prevention has a return on investment. This means that money invested in security and loss prevention can generate not only savings, but also a profit. A good knowledge of business principles and practices can aid the practitioner who must speak “business management language” for effective communications. A loss prevention practitioner who does not speak “business management language” would be wise to enroll in management and accounting courses at a local college.

In one large corporation, the strategy of the security department to gain management support is to quantify its worth and prove it can provide services more efficiently than an outside contractor. This is the reality of proprietary security today as it struggles to survive and escape the outsourcing and downsizing trends. This corporation’s security department tracks everything from the number of investigations conducted to the turnover rate of security officers. Such information (i.e., metrics) helps the security function evaluate and improve its services to its internal customers. Surveys are also used to measure customer satisfaction. Additionally, the department measures losses avoided because of security action. For example, the department takes credit for the annual savings from an investigation that reveals that a worker’s compensation claim that the corporation has been paying for several years is fraudulent. Another avenue to gain management support is to show that a $50,000-a-year investigator can recover an average of $500,000 in lost inventory each year (Hollstein, 1995: 61–63).

Orientation and Training Programs

Beginning with a new employee’s initial contact with a business, an emphasis should be placed on loss prevention. Through the employment interview, orientation, and training, an atmosphere of loss prevention impressed on the new people sets the stage for consciousness-raising about the importance of reduced losses through prevention strategies.

Specifically, orientation and training sessions should include a description of the loss prevention plan pertaining to crimes, fires, and accidents. Program objectives, benefits to employees, and how employees can help reduce losses also are topics of concern. Other topics include access controls and cards, information security, emergency procedures, and various loss prevention services, systems, policies, and procedures.

Loss Prevention Meetings

Meetings with superiors, with employees on the same level as the loss prevention manager, and with subordinates all strengthen internal relations because communication is fostered. When the loss prevention manager meets with superiors, goals and objectives often are transmitted to the manager. Essentially, the manager does a lot of listening. However, after listening, the manager usually has an opportunity to explain the needs of the loss prevention program while conforming to senior management’s expectations. This two-way communication facilitates mutual understanding.

Meetings with other managers vary, depending on the type of organization. For instance, a meeting between the human resources manager and the loss prevention manager helps to resolve problem areas. One typical conflict pertains to disciplinary decisions. Another problem area between both departments evolves from applicant screening. Both departments should meet, work together, and formulate a cooperative plan.

When a loss prevention manager meets with subordinates, internal relations are enhanced further. Morale and productivity often are heightened when subordinates are given an opportunity to express opinions and ideas. A manager who is willing to listen to subordinates fosters improved internal relations.

Intranet and E-Mail

The communications technology of today offers a security and loss prevention program superb opportunities to market its services (Huneycutt, 2000: 103–107; Richardson, 2000: 24–26). This involves informing customers of available services, providing helpful information, requesting assistance from customers, seeking input on the needs of customers to improve protection, and illustrating the value of security and loss prevention to the organization.

An intranet is an in-house, proprietary electronic network that is similar to the Internet. To prepare an internal Web page for security, a committee can be formed composed of management, security personnel, a Web master to take a leadership role, and an employee from the internal relations department. Next, ascertain through a survey what the customers of security would like to see on the Web page. Consideration must be given to what not to post and possible external access by nonemployees. Moderation should be used with visual images so the site does not require excessive time to load to a customer’s computer. Visuals of police badges and handcuffs should be avoided to favor a partnering, loss prevention approach. To help market the site, it can be placed on the home page of the organization’s intranet.

An organization’s security and loss prevention internal Web site can contain the following:

E-mail is a convenient way to communicate. Management and other internal customers can be sent a quarterly report on vulnerabilities, incidents, direct and indirect losses, prevention strategies, and achievements. “Tooting one’s own horn” should not be perceived as bragging, but a method to inform others that the past budget allocation was worthwhile. For example, achievements may include lowering shrinkage and increasing profits, foiling a criminal conspiracy, and quickly extinguishing a fire. Such a report for superiors will better prepare them for meetings, budgets, and decisions associated with loss prevention.

As a security manager, what types of information would you avoid placing on the Internet and a company intranet?

Involvement Programs

The essence of involvement programs is to motivate employees who are not directly associated with the loss prevention department to participate in loss prevention objectives. How can this be accomplished? Here are some suggestions: The employee responsible for the lowest shrinkage among several competing departments within a business wins $200 and a day off. The employee with the best loss prevention idea of the month wins $50. Those people who become involved should be mentioned in loss prevention reports to show others the benefits of participating in loss prevention activities. Another strategy is the use of anonymity and reward for reporting information helpful to loss prevention objectives.

External Relations

Law Enforcement

Without the assistance of public law enforcement agencies, criminal charges initiated by the private sector would not be possible. Public police and prosecutors are the main components of public law enforcement. Police frequently are guided by a prosecutor, who is often referred to as the chief law enforcement officer. The prosecuting attorney has broad discretion to initiate criminal cases. Community sentiment and powerful groups almost always have an influence on a prosecutor’s discretion. Various alternatives are open to a prosecutor. If there is sufficient evidence, the prosecutor can charge an individual. Charges frequently are reduced after a defendant has agreed to plead guilty to a lesser offense, and this plea bargaining process avoids an expensive trial.

Unless private security officers adhere to the basic requirements within local jurisdictions, cases cannot be prosecuted successfully. An example can be seen in shoplifting cases. Depending on state law and local prosecutor requirements, a jurisdiction may require apprehension of a shoplifter after the offender leaves the store with the item instead of apprehending within the store. Many prosecutors feel that this strengthens the case.

External relations with law enforcement agencies are vital for loss prevention programs. Sharing information is a major factor in enhancing this working relationship. Law enforcement agencies often provide information that aids the private sector. Intelligence information pertaining to the presence in an area of professional criminals, bad-check violators, counterfeiters, and con artists assists the private sector in preventing losses. Because of cybercrime, police agencies are increasingly working with the private sector to investigate and prosecute hackers and other cyberoffenders.

Public Safety Agencies

In addition to law enforcement, other public safety agencies such as fire departments, emergency medical services, rescue squads, and emergency management agencies are helpful to loss prevention programs. An analysis of these services is particularly important when a new facility is being planned. Factors relevant to emergency response time, equipment, and efficiency assist in planning the extent and expense of a loss prevention program.

Very little is accomplished by overtly criticizing local public safety agencies for their deficiencies. This action results in negative attitudes and strained relations. Moreover, in the future, the severity of losses very well may depend on action taken by these agencies.

Several strategies help create good relations:

1. Do not become too aggressive when striving toward good external relations.

2. Speak on the same vocabulary level as the person with whom you are communicating.

3. Do not brag about your education and experience.

4. Do not criticize public safety practitioners, because these comments often are repeated.

5. Try to have a third party, such as a friend, introduce you to public safety personnel.

6. Join organizations to which public safety personnel belong.

7. Join volunteer public safety organizations (e.g., the local public police reserve or volunteer fire department), if possible.

8. Speak to civic groups.

9. Ask to sit in on special training programs and offer to assist in training.

10. Try to join local or regional criminal intelligence meetings, where information is shared and crimes are solved.

11. Create a softball league with private and public sector participation. Have a picnic at the end of the season. Try to obtain company funds for these activities.

12. Obtain a position on an advisory committee at a college that has a criminal justice, security and loss prevention, homeland security, or fire science program.

13. Form an external loss prevention advisory board and ask local public safety heads to volunteer a limited amount of time. Secure company funds to sponsor these as dinner meetings.

14. Accept official inspections and surveys by public safety practitioners.

15. Begin an organization, such as a local private sector–public sector cooperative association, that has common goals.

The Community

When a new industry moves to a community, external relations become especially important. Residents should be informed about safety plans. Safety is a moral obligation, as well as a necessity, to ensure limited losses and business survival. As shown in the media, over and over again, community resistance to certain industries is strong. Consequently, an industry with a history of adverse environmental impact must cultivate relations that assure residents that safety has improved to the point of causing minimal problems and an extremely low probability of accidents. Engineers, scientists, senior management, and other support personnel are needed to provide community residents, politicians, and resistance groups with a variety of information and answers. Another consideration involves reassuring the community that a proposed industry will not adversely drain public service resources while creating additional community problems.

To promote strong ties to the community, companies often become involved in community service projects. Employees volunteer time to worthy causes such as helping the needy and mentoring youth. ASIS International promotes a Security for Houses of Worship Project that offers security practitioners an opportunity to partner with college security and criminal justice academic programs to protect houses of worship (Purpura, 1999).

The Media

The media can help or hinder a loss prevention program. Efforts must be made to recruit the media. Difficulties often arise because members of the media usually are interested in information beyond that offered by interviewees. It is worthwhile to maintain positive relations; negative relations may create a vicious cycle leading to mutual harm.

In almost all large organizations, educated and experienced media relations personnel handle the media. Loss prevention practitioners should take advantage of such an organizational structure. This, in effect, insulates the loss prevention department from the media. Policy statements should point out that comments to the media are released through a designated spokesperson. When all loss prevention personnel clearly understand the media policy, mistakes and embarrassing situations are minimized. An example of a mistake is the story about a young police officer who was confronted by an aggressive news reporter about a homicide investigation. Investigators had one lead: clear shoe prints under the window of entry to the crime scene. It was hoped that the suspect would be discovered with the shoes that matched the prints. Unfortunately, the news reporter obtained this information from the young officer. The local newspaper printed the story and mentioned the shoes. After reading the newspaper, the offender destroyed the shoes, and the case became more difficult to solve. There had never been a clear policy statement concerning the media within the organization. Another blunder may take place if the amount of valuables (e.g., cash) stolen in a burglary or robbery is revealed to the media, or the fact that the offenders overlooked high-priced valuables during the crime. Both types of information, broadcast by the media, have been known to cause future crimes at the same location.

When working with the media and answering questions, Sewell (2007: 4) recommends projecting sincerity and credibility, keeping it simple, understanding the reporter’s question before answering, and being ready to think on the spur of the moment. An article in Security Management, “Stress from the Press—and How to Meet It” (1980: 8–11), states many useful ideas concerning relations with the media. The article stresses the importance of preparation, knowing what you want to say, being prepared for tricky questions, and carefully phrasing answers. Numerous firms train executives in effective communication techniques. These courses vary, but most participants learn how to deal with hostile questioning and receive feedback and coaching with the assistance of videotaping. The courses generally run for one to three days and can cost thousands of dollars per participant.

The article recommends several “don’ts” for interviews with the media:

1. Don’t return any hostility from the interviewer.

2. Don’t lose the audience. Speak clearly and use simple words.

3. Don’t say “no comment.” If you can’t answer the questions, at least tell the audience why.

4. Don’t make up answers. If you do not know an answer, say so.

5. Don’t say “off the record.” If you don’t want it repeated, don’t say it.

6. Don’t offer personal opinions. You are on the air to represent your company, and everything you say will appear to be company policy.

External Loss Prevention Peers

The practitioner who exists in a vacuum is like a student who doesn’t pay attention. No knowledge is obtained. Through formal and informal associations with peers, the practitioner inevitably becomes involved in a learning experience. One of the results of relations with peers is information that can improve loss prevention programming.

No individual is an expert about everything. If a group of experts comes together, a broad spectrum of ideas results. When a loss prevention practitioner does not know the answer to a particular question, a call or e-mail to a peer can produce an answer. Peers are helpful in the selection of services and systems, budget preparation, and even presentations to management.

Many formal organizations are open to practitioners. The one organization known by almost all practitioners is ASIS International. This organization is at the forefront in upgrading the security and loss prevention field by educating members and increasing professionalism. Local chapters, national meetings, seminars, and specialized committees and councils bring peers together for mutually beneficial relations.

Special Problems

Certain select areas of concern overshadow both internal and external relations. Two important areas are prosecution decisions and loss prevention attire.

Prosecution Decisions

Prosecution decisions concerning employee–offenders, usually for theft, often are difficult for management. The difficulty arises because a wise manager considers numerous variables. No matter what decision is made, the company may suffer in some way. The situation is tantamount to “damned if we do and damned if we don’t.” The following are benefits of prosecuting:

1. Prosecuting deters future offenders by setting an example. This reduces the potential for future losses.

2. The company will rid itself of an employee–offender who may have committed previous offenses.

3. The company will appear strong, and this will generate greater respect from employees.

4. Morale is boosted when “rotten apple” employees are purged from the workforce.

5. If a company policy states that all offenders will be prosecuted, then after each prosecution, employees will know that the company lives up to its word and will not tolerate criminal offenses.

6. The company aids the criminal justice system and the community against crime.

7. Local law enforcement will feel that the company is part of the war against crime. This will reinforce cooperation.

8. A strong prosecution policy will become known inside and outside the company. Those seeking employment who also are thinking of committing crimes against the company will be deterred from applying for work.

The following are benefits of not prosecuting:

1. The company shows sympathy for the employee–offender. Therefore, employees say the company has a heart. Morale is boosted.

2. Not prosecuting saves the company time, money, and wages for those employees such as witnesses and the investigator, who must aid in the prosecution.

3. If the employee–offender agrees to pay back the losses to the company and he or she is not fired, the company will not lose an experienced and trained employee in whom it has invested.

4. The criminal justice system will not be burdened by another case.

5. Sometimes companies initiate prosecution, an arrest is made, and then management changes its mind. This creates friction with law enforcement agencies.

6. Possible labor trouble is avoided.

7. Possible litigation is avoided.

8. Prosecution sometimes creates friction among human resources, internal and external relations, and loss prevention departments.

9. Giving bad news to financial supporters, stockholders, customers, and the community is avoided.

To complicate the prosecution decision even more, the policy statement concerning prosecution must be carefully worded by management. There is no perfect statement that can apply to all incidents. A look at a strict policy statement illustrates this problem. Suppose a company policy states that all employees committing crimes against the business will be impartially and vigorously prosecuted. Thereafter, what if a 15-year employee, with an excellent work record and accumulated company-paid training, is caught stealing a box of envelopes? How would you handle this decision as a senior executive?

Employees Smoking Marijuana

An undercover investigation at the Southern Manufacturing Plant by public and private investigators revealed that seven experienced and well-trained employees smoke marijuana before work.

The company loss prevention and human resources managers met with senior management to decide what to do. One solution was to fire all the employees; however, these offending employees had good work records and considerable work experience, and the company had invested heavily in their training. The loss prevention and human resources managers suggested that the employees be confronted and threatened with firing unless they participated in an Employee Assistance Program through a local alcohol and drug abuse program and submitted to drug testing. The managers stated that another local business had a similar problem and a contract was formulated between the business and the government agency dealing with alcohol and drug abuse problems. Senior management at Southern favored this idea.

Later, the employees were confronted and surprised. They all admitted that they liked their jobs and were willing to participate in a drug abuse program on their own time to avoid being fired. By this time, the local alcohol and drug abuse commission had agreed to conduct a program for these employees. The local police chief and prosecutor favored the program as an innovative diversion from the criminal justice system.

Senior management was satisfied. Internal and external relations were improved. The company provided a second chance for the employees and did not lose experienced workers or the money invested in their training.

Many organizations would not choose this lenient path. Numerous organizations would terminate the substance abusing employees who were under the influence at work, especially in industries that are regulated and/or involved in public safety and security.

Much economic crime is disposed of privately (Cunningham et al., 1991: 4). The Report of the Task Force on Private Security (U.S. Department of Justice, 1976: 128) adds interesting perspectives to the issue:

[I]t would appear that a large percentage of criminal violators known to private security personnel are not referred to the criminal justice system. A logical conclusion would be that there is a “private” criminal justice system wherein employer reprimands, restrictions, suspensions, demotions, job transfers, or employment terminations take the place of censure by the public system…. [I]n many instances private action is more expedient, less expensive, and less embarrassing to the company. Fear of lawsuits or protecting the offender from a criminal record may be important. However, violations of due process, right to counsel, and other individual rights are more likely to occur under such a system. The criminal justice system is established for the purpose of resolving criminal offenses and can be a viable resource for the private security sector in this regard.

Another factor affecting prosecution is the prosecution threshold, which is the monetary level of the alleged crime that must be met before prosecution. Trends indicate a rise in dollar amounts of individual instances of theft that are partly tied to employee perception of changes in company and prosecutor policies concerning prosecution thresholds. An article in Security Management Bulletin [“Finding Where the (Financial) Bodies Are Buried,” 1993: 4–5] states: “In the 1970s, an employee who stole $10,000 would have been prosecuted. Today, in many places, that amount won’t even produce a criminal referral.”

Should management in companies seek to prosecute or not prosecute employee offenders?

Loss Prevention Attire

The appearance of loss prevention personnel has an impact on how people perceive a loss prevention program. A vital part of appearance is attire (i.e., uniforms). Wrinkled, messy uniforms send a message to observers that loss prevention objectives are not very important. A variety of people observe loss prevention personnel: employees, customers, visitors, salespeople, truck drivers, law enforcement personnel, and the community in general. What type of message to these people is desired from an effective loss prevention program? Obviously, neat, good-looking attire is an asset and shows professionalism.

Attire can project two primary images: subtlety or visibility. Subtle attire consists of blazers or sports jackets (see Figure 5-3). It is generally believed that blazers project a warmer, less threatening, and less authoritarian image. Increased visibility and a stricter image are projected through traditional uniforms. However, it is vital that traditional uniforms do not look similar to those worn by public police; this can cause mistakes by citizens needing aid, public police resent private security officers wearing such uniforms, and state regulatory authorities over the private security industry may prohibit uniforms (and vehicles) that appear as public police.

All security and loss prevention personnel must realize that they have only one opportunity to create a first, favorable impression.

FIGURE 5-3 Security officers at a museum.Courtesy of Wackenhut Corporation. Photo by Ed Burns.

Research on the psychological influence of the public police uniform should be considered by those who plan uniforms for the private sector. It has been shown in psychological tests that individuals associate the color blue with feelings of security and comfort, and the color black with power and strength. Other research shows black and brown being perceived as strong and passive, but also bad, and eliciting emotions of anger, hostility, and aggression. Darker police uniforms may send negative subconscious signals to citizens. One experiment showed that lighter-colored sheriff’s uniforms were rated higher for warmth and friendliness than darker uniforms. Furthermore, a half-dark uniform (i.e., light shirt, dark pants) sends a better message than an all-dark uniform. Research on the traditional uniform versus the blazer shows mixed results. The Menlo Park, California, police tried the blazer for eight years but found that assaults on police increased and that it did not command respect. After 18 months of wearing blazers, the police of this department displayed fewer authoritarian characteristics when compared to police from other nearby agencies (Johnson, 2001: 27–32). For the private sector, research questions are: Do light-colored uniforms or blazers send more positive signals than dark-colored apparel? Do blazers really create a less authoritarian atmosphere than uniforms? What impact do blazers have on assaults and respect for private security officers?

Do you favor traditional uniforms or blazers for security officers? Why?

Search the Web

Check out the following sites on the Web:

American Marketing Association: www.marketingpower.com/

Marketing virtual library: www.knowthis.com/

Professional Associations and Institutes: http://ritim.cba.uri.edu/resources/

Public Relations Society of America: www.prsa.org/

Society for Industrial and Organizational Psychology: http://siop.org/

Case Problems

5A. As a security supervisor, you have received reports that a security officer assigned to the employee parking lot is having repeated verbal confrontations with employees. One report described the officer’s use of profane language and threats. Specifically, what do you say to this officer, and what actions do you take? How do you repair internal relations?

5B. You are a loss prevention supervisor, and two company employees report to you that a loss prevention officer is intoxicated while on duty. You approach the officer, engage in conversation, and smell alcohol on his breath. What do you do? An added complication is that this particular officer has a brother in the local police department who has provided valuable aid during past loss prevention investigations. Furthermore, the officer has had a good work record while employed by the company for five years. After you carefully study the advantages and disadvantages of various internal and external ramifications to proposed actions, what do you do?

5C. While a loss prevention officer was routinely patrolling the inner storage rooms of a manufacturing facility, he accidentally stumbled on two employees engaged in sexual intercourse. All three were shocked and surprised. The man and woman should have been selecting orders for shipment. The woman cried and begged the loss prevention officer to remain silent about this revelation. The man also pleaded for mercy, especially because both were married to other people. When the officer decided that he should report the matter, the man became violent. A fight developed between the officer and the man and woman. The officer was able to radio his location and within 10 minutes other officers arrived. The pair has been brought to the loss prevention office. What do you do as the loss prevention supervisor?

5D. You are a newly hired security manager for an electronics company of 2,000 employees. You were told by your supervisor, the vice president of human resources, “You are here to bring our security program into the 21st century.” Apparently, the previous security manager did not meet management’s expectations. As you speak with employees and public safety practitioners in the community, you get the impression that you need to “build many bridges.” What are your ideas for improving internal and external relations?

5E. An unfortunate explosion and injuries took place at Smith Industries, and a company vice president designates you, a loss prevention supervisor, to speak to the media. It has been only one hour since the explosion, the investigation is far from complete, and you have no time to prepare for the media representatives who have arrived. As you walk to the front gate, several news people are anxiously waiting. The rapid-fire questions begin: “What is the extent of injuries and damage?” “Is it true that both high production quotas and poor safety have caused the explosion?” “What dangers will the community face due to this explosion and future ones?” “What are your comments about reports that safety inspectors have been bribed by Smith Industries executives?” How do you, as a loss prevention supervisor with the authority and responsibility to respond to media questions, answer each question?

5F. Because of your experience and college education, you are appointed manager of loss prevention at a large manufacturing facility in a small city. It is your understanding that the local police chief is introverted and uncooperative with strangers. The chief has an 11th-grade education and is extremely sensitive about this deficiency. He refuses to hire college graduates. Despite these faults, he is respected and does a good job as a police administrator. The local fire chief is the police chief’s brother. Both have similar backgrounds and character traits. Furthermore, the local prosecutor is a cousin of both chiefs. A “clannish” situation is apparent. As the loss prevention manager, you know that you will have to rely on as much cooperation as possible from these public officials. What do you do to develop good relations with them?

5G. Allen Dart has worked for the Music Manufacturing Company for 14 years. He has always done above-average work and was recently promoted to production supervisor. One afternoon when Allen was leaving the facility, he dropped company tools from under his coat in front of a loss prevention officer. Allen was immediately approached by the officer, who asked Allen to step inside to the loss prevention office. At this time, Allen broke down and began crying. Before anybody could say a word, Allen stated that he was very sorry and that he would not do it again. Later, the loss prevention and human resources managers met to discuss the incident. An argument developed because the loss prevention manager wanted to seek prosecution, whereas the human resources manager did not. How do you, as a vice president in this company, resolve the situation?

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