Introduction

Crime is an act that affects all people in a country. In March, 2000 the researcher family was attacked by several men with guns. As a result of the incident the researcher was impacted in a profound way; owing to the fact that the men held several family members at gun point, forcing them to surrender all cash and jewellery. Since the incident all locks were changed within the house, burglar proof windows and secured gates with alarm system were installed. However this did not prevent the perpetrators; the victims have been attacked several other times. Current reports of increase levels of criminal offences, especially against the commercial sectors within our country have influenced me to do an investigation on how exactly crime impacts the business society. The aim of this investigation was to learn the effects of crime on twenty random businesses in Georgetown. This study addresses the following questions: How frequently are businesses being targeted to criminal activities? What types of crime are mostly affecting businesses? Are business persons satisfied with the efforts to reduce crime at the business place? What can be done to reduce crime? This research is expected to enhance the researcher understanding resting on the role crime plays on the businesses society; through local societies. The study will also offer the researcher opportunities to promote self learning, display evidence of careful observation and some degree of originality in their work. It will allow students to analyze information and make practical decisions. Lastly the researcher will be able to explore the social issues affecting businesses in Georgetown.

Some delimitation of this research includes; the research was only focused on the effects of crime and not the causes of crime. It was limited to businessmen/Women in Georgetown, but not the business society as a whole. Definition of Terms: Impact - A resultant effect Crime - violation of law, an offence against morality or public welfare

Burglary - The act or crime of breaking into any building with the intent to commit felony Robbery theft from a person by intimidation or by Violence.

Embezzlement - the crime of stealing the funds or property of an employer, company or government or misappropriating money or assets held in trust

Literature Review
Crime, we are told, is today a salient fact, an integral part of the risks we face in everyday life. It is something that goes across all borders, It does no matter how high on the social ladder you are on; its affects everyone. Crime operates as a core concept in today society. Crime is the breach of rules or laws for which some governing authority (via mechanisms such as legal systems) can ultimately prescribe a conviction. Since the nineteenth century, sociologists have studied the relationship between economic business cycles and the increase of crime. Sociologists views crime as deviant behavior that violates prevailing norms or cultural standards prescribing how humans ought to behave normally. This approach considers the complex realities surrounding the concept of crime and seeks to understand how changing social, political, psychological, and economic conditions may affect changing definitions of crime and the form of the legal, lawenforcement, and penal responses made by society. These structural realities remain fluid and often contentious. As cultures change and the political environment shifts, societies may criminalize or decriminalize certain behaviors, which directly affect the statistical crime rates, influence the allocation of resources for the enforcement of laws, and (re-)influence the general public opinion. Similarly, changes in the collection and/or calculation of data on crime may affect the public perceptions of the extent of any given "crime problem1. Crime may be a factor in as many as thirty percent of all business failures. The Private Sector Commissions have reported that there have been an average of twenty five percent of business that have sustained to criminal activities, over the period January to December 2010. The report went on to state that the crime rate may increase if businesses do not take the necessary precautions.2 High rates of unemployment and lack of economic development along with narcotics trafficking breed crime, violence and gangs in many Caribbean nations especially in Guyana. As of attacks on businesses and residents, most people are afraid to
1 2

A Human Behavioral Approach to Crime by Mukesh P Sahadeo: Global educational Advancement INC., July 2008 www.psc.org.gy

walk on the streets or even come out of their homes, thus affecting the growth of your business society. Because of the impact of crime most businesses are forced to close earlier than their regular business hours. No one should feel safe given what is taking place at the moment and especially when so many members of the business community are being targeted. It is the business community who has always borne a heavier burden of armed attacks and robberies.3 There is a considerable difference in the incidences of certain types of crime occurring in different types of business. Businesses primarily targeted to petty criminal activities in Guyana, are sole trader businesses. The fact that these businesses are less developed and cant afford to proper security measures. It is easier for the robbers to break into small businesses where they only have to gain access by breaking a few windows or remove a few grills. They do not have to worry about alarm systems and security cameras; as against large companies where perpetrators have to organize a team of skilled individuals who have to expertise to pull off the crime. It is worthy of note, though perhaps unsurprising, that small businesses experiences the lowest levels of all crimes. Conversely, the highest levels of credit card fraud, e-crime and identity fraud occurred in warehouse/factory businesses. These businesses also experienced the highest levels of other crimes such as forgery (34.3%), (41.3%), emblezzment (36.2%), theft (28.3%), burglary (38.4%), robbery (31.3%). The highest employee theft (%) levels of shoplifting (51.5%), vandalism (49%), threatening behavior (41%) and graffiti it (38.5%) were experienced by retail/shop businesses in Guyana.4 The current economic condition of Guyana will likely to accelerate criminal activity ranging from shoplifting, fraud, robbery, embezzlement, bankruptcy, bribery, insider trading, computer crime, public corruption, identity theft, consumer fraud, securities fraud, financial fraud, forgery among others. The three broad categories of crime that affects businesses in Guyana today are burglary, armed robbery and financial crimes. According to a Survey carried out; burglary accounted for over (40%) forty percent of incidents incurred, followed by shoplifting (23%) twenty three percent and robbery incidents were at (19%),
3 4

An Overwhelming Phenomenon of Crime by Scott .D. S; white collar publications, 2007 http://www.fsb.org.gy/policy/assets/crimes%20against%20business.pdf

nineteen percent, including cash in transit robbery, bank robbery and carjacking. Financial crimes targeting businesses include corruption, blackmail, money laundering, advance fee fraud, banking fraud, identity theft, and organized crime. Recent crime survey also revealed that most criminal activities requires skilled planning, and mostly goes undetected.5 Conditions must be present for employees to commit fraud; is incentive, often in the form of some type of pressure. Pressure may be due to financial reasons, sometimes associated with extra money needed for an adulterous relationship, be due to excessive medical bills, gambling debts, drug addiction among others. Opportunity exists when businesses fail to develop safeguards or become too trusting of employees. Rationalization occurs when an employee justifies their action as the company owing them6. Economic cycles indicate that during more difficult economic times, criminal activity increase. Experts believe that fraud in particular, increases during recessionary times. Businesses, already susceptible to a wide variety of crimes, need to be on their guard to prevent the impact of criminal activity from impacting profitability to the point that the viability of their business comes into question. Crimes against companies range from shoplifting and vandalism to piracy and counterfeiting. In some instances, crimes committed against businesses are committed by outsiders while in many other situations; employees at all levels commit crimes against their employers. In some cases, companies become unwitting accomplices of money-laundering crimes. Employee Theft is one of the most common crimes affecting businesses. The Guyana Police Department reports more than one-third of all thefts from businesses are by employees. Business owners cite various types of theft. Pocketing money from cash registers is a common form of employee theft. Stealing goods from shelves and stockrooms happens often as well. Developing a good employee-employer relationship helps reduce employee theft. Employees are less like to steal if they feel respected on the job. Providing rewards for a job well done and good career opportunities helps as well. According to the Guyana Police Department, businesses with the lowest turnover rates have the lowest
5 6

http://www.psc.org.gy Development of Crime in the Business world by R. Nunes and A. Stapler: Camberage Press, 2000

internal theft rates. Credit card fraud is a crime that hurts businesses offering online shopping. The business loses the money and the merchandise when one uses fake credit card. One way to reduce online fraud is to delay the shipment of items. Instead of shipping an item as soon as the order is received, wait for authorization from the customer's bank. Card Verification Methods (CVM) also is deterrents. CVM refers to the three or four numbers on the back of a credit card, usually on or next to the signature strip. A customer must have the card to know the number. CVM makes it more difficult for thieves to use stolen credit card numbers.7 An employer will have certain duties to keep the work place safe as possible; they may also need to know that their staff and customers are safe. Failures to take the necessary precaution to prevent crime will invite perpetrators to attack the business. Business should not rely on one measure to prevent crime; they should take more than one measures. Employers should always check reference of new staff, Introduce and follow them through policies of employees theft. Staff should be trained to spot thieves and to watch out for suspicious behavior. Remember that your safety is always more important than your property. Every business owner, manager and employee plays a part in making businesses safe.8

7 8

Crime in the Caribbean by Sir Ronald Sanders: Hansib publication, 2000 http://crime.about.com/od/prevent/qt/prevent_robbery.htm

Presentation of Data

Percentage of Business targeted by Criminal activities

No

No Yes

Yes

0%

10%

20%

30%

40%

50%

60%

70%

80%

Types of business affected by criminal activities

Cooperatives 17% Franchise 8%

Soletrader 20%

Multi National 19% Joint Venture 14%

Parthnership 22%

Types of Crime affecting Businesses

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Forgery Theft

Roberry

Burgulary

Other

Managers view on Crime

Yes No

Businesses

Types of business

Types of Crime affecting business

1 2

Sole Trader Sole Trader

Burglary Theft

Frequency of Attacks within a year 6 1

Prevention of crime by Employers Security Guards Security cameras, Theft Decatur system Security Guards Security Guards Security Cameras, Theft Decatur System Theft Decatur System Security Security Security Security Security Security Security

Prevention of crime by Government Activities to engage youths Patrol officers on the street. Patrol officers on the street. Patrol officers on the street. Activities to engage youths Patrol officers on the street. Patrol officers on the street. Activities to engage youths Create more jobs Activities to engage youths Activities to engage youths Patrol officers on the street. Laws protecting businesses Laws protecting businesses Laws protecting businesses Create more jobs. Create more jobs Create more jobs -

3 4 5

Sole Trader Sole Trader Sole Trader

Theft Theft& Burglary Theft

3 9 2

6 7 8 9 10 11 12 13

Sole Trader Sole Trader Sole Trader Partnership Partnership Partnership Partnership Company

Burglary Robbery Burglary Robbery Robbery Robbery Burglary Fraud & Theft

1 3 4 3 2 3 1 9

14

Company

Fraud

Security

15

Company

Fraud

Security

16 17 18 19 20

Multinational Multinational Multinational No response No response

Embezzlement Fraud Fraud -

1 6 4 -

Security Security Security -

Questionnaire
Dear Sir/Madam, I am an upper sixth student of Saint Stanislaus College, who is pursuing the Caribbean Advanced Examination (C.A.P.E) in 2012. I am therefore required to carry out a research in relation to my Caribbean Studies Internal Assessment. This survey is being carried out to investigate the effects of crime on twenty random businesses. Place a tick in the box next to the correct answer(s) you have chosen; special instructions given where necessary. Please be honest in your responses. Your answer are completely confidential ad you identity is disclosed. Thank you. Yours Faithfully, Alicia Bacchus 1. What is your gender? Male Female 2. To what age range do you belong? 18-25 years 26-33 years 31-41 years 49 and over 3. How long has this business been established in Georgetown? 1-8 years 9-16 years

17-24 years 25-32 years 33-40 years Over 40 years 4. To which ethnic group do you belong? East Indians Africans Mixed Chinese Other 5. What type of business are you operating? Sole Trader Partnership Joint Venture Multinational Franchise Cooperatives 6. What is your position within the company/ business?

7. Has this business ever been targeted to criminal activities?

Yes No 8. As owner/ Manager, are you Satisfied with measures put in place to reduce crime? Yes No 9. Does your business or company have any of the following for security purposes? Security cameras Security Guards Theft Decatur System Other please state______________________________ 10. How would you describe crime in Georgetown? Excellent Good Average Satisfactory Fair Unacceptable

11. What is the most common type of crime; that would affect businesses in Georgetown? Forgery Theft Robbery

Burglary Other please state __________________________________________ 12. What measures can be put in place by the government to reduce crime? Create More Jobs Create activities to engage youths Ensure that there are laws protecting businesses to some extent Ensure there are patrol offers on the street e Other please state___________________________________________ 13. What impact does crime have on a business? Refrain businessmen to invest or to take risks Affect business profit thus reduce growth May lead business into bankrupt Other please specify ________________________________________________ 14. As business owners/ managers are you satisfied with efforts done by police when investigating a business which have been targeted by criminal activities? Yes No Please state why you chose the answer above: ________________________________________.

15. If crime rate continues to increase in Georgetown what would be the future Implementation for the business? Bring the business to a closure

Stay and work as usual Implement safer security for the business Other