The Effects of employee fraud on the operational activities of retail shops in Harare CBD

Author

Nkhokwe, Rufaro

Title

The Effects of employee fraud on the operational activities of retail shops in Harare CBD

Abstract

Employee fraud is an ill which affects the operations of retail businesses. This research sought to explore the effect of fraud on the operational activities of retail shops, using retail businesses in Harare CBD as the case study. The research was guided by the following objective; to identify the types of employee fraud within retail businesses in Harare CBD, to investigate the causes of employee fraud in retail businesses in Harare CBD, to determine the impact of employee fraud in the operational activities of retail businesses in Harare CBD and to recommend strategies to curb employee fraud in the operations of retail businesses in Zimbabwe. On a sample size of 54, the researcher employed a descriptive case study research design. The main data gathering tools used were the questionnaire and the interview. The study's respondents were chosen using stratified random sampling and purposive sampling methods. Data was analysed using Microsoft Excel 2016 and the Statistical Package for Social Sciences (SPSS) version 20 before being shown in tables and bar graphs. Asset misappropriation, procurement fraud and corruption were identified as the dominant types of fraud affecting operations of retail businesses in Harare CBD. Identified as the major causes of fraud were financial pressure, poor/inadequate internal controls, inadequate remuneration and inadequate and ineffective internal audit. It was also discovered through the research that employee fraud had the biggest effects on the operations of retail shops in Harare CBD in the form of direct financial losses, increased security expenses, loss of credit worthiness and reputational damage. As successful safeguards against employee fraud in retail stores, the study strongly advised harsh sanctions for disloyal workers, tight recruitment procedures, and target hardening.

Date

June 2023

Publisher

BUSE

Keywords

Employee fraud,

Retail Shops,

Asset misappropriation,

Supervisor

N/A