PUTTING CRIME OUT OF BUSINESS CRIME COSTING SMEs €1.62bn ANNUALLY

• 36% of businesses impacted by crime in the past 12 months.
• Direct cost of crime has risen by 128% since 2007.
• SMEs have lost faith in judiciary as 98% see it as ineffective.
• Crime against business not measured.
• Government must prioritise the issue of business crime. 

ISME, the Irish Small and Medium Enterprises Association, issued the results of its National Crime Survey - Putting Crime out of business today (17^th August). The survey found that 36% of businesses have been the victim of crime in the past twelve months, however 20% of crimes went unreported. 84% of those businesses affected by crime experienced more than one incident.

According to ISME CEO, Mark Fielding, "Business crime is a situation that has been allowed to deteriorate over time, with little or no Government intervention. The results of the survey are a damning indictment of the judicial system. The business community has the right to expect that, when found guilty; a perpetrator of crime against business will be dealt with appropriately by the judiciary. This survey clearly shows that there is a total lack of faith in the justice system, as 98% of respondents feel that it is ineffective in dealing with business crime".

"This lack of faith is reflected in the fact that one fifth of crimes are not being reported. Sentencing must be appropriate to the crimes committed and should adequately deter repeat offences. A much tougher stance is needed in relation to business crime as part of a comprehensive business crime prevention strategy, so that this scourge on business can be eradicated. Until this issue is taken more seriously at official level, business owners will not put in the time and money into reporting a crime unless they are confident of adequate action being taken against the perpetrators of crime in their businesses."

The survey respondents were unambiguous in their calls for more visible policing, increased CCTV surveillance and tougher court sentences. The Government will argue that we simply do not have the financial resources to invest in these actions. However, it is imperative that funds are allocated to tackle this growing epidemic. The Government has a responsibility to act now to ensure that the detrimental impact of crimes against business on the economy, local communities and employment rates is reduced.

The fact is that there is no classification for 'Commercial or Business Crime' - it is either 'domestic' or 'non-domestic' and therefore, there are no 'official' statistics. What isn't measured isn't managed.

With computerisation and the power of the internet, it must be feasible to log and classify all crimes by their type. Key Performance indicators could then be set to determine the effectiveness of any steps taken to decrease business crime. This is important to ensure that actual progress is made in the area and to avoid the risk of a strategy being set that simply pays lip service to the problem but does not effectively address it.

ISME has ten recommendations for reducing the level of crimes perpetrated against businesses: 

1. 1.   Introduction of a single, national definition for business crime in Ireland to enable these offences to be properly 'tagged', measured, analysed and ultimately solved by the Garda. Business crime must be measured and recorded so that the extent, nature and scope of the issue can be properly assessed.
2. 2.   The Annual Report of the Garda Commissioner should contain a specific section concerning business crime, backed by figures on the number of business crimes reported and detected, in the same way as other crime statistics and specific recommendations.
3. 3.   Set ambitious targets for Key Performance Indicators in this area to gauge the effectiveness of the efforts being made to reduce business crime.
4. 4.   A National Forum on Crime should be created to analyse this problem and propose solutions. The Forum should include representatives from law enforcement agencies and the business community, to build closer partnership work between business, government, law enforcement and others to fully utilise the sector's data, knowledge and expertise.
5. 5.   Provide training to Community Police Officers to improve their understanding of how local businesses operate and the impact and extent of business crime.
6. 6.   Reassess the sentences handed out by the judiciary when dealing with business crime to ensure that they are an adequate deterrent.
7. 7.   Increase levels of CCTV surveillance, particularly in town centres, and increase the number of Gardai on patrol by outsourcing administrative duties to the private sector.
8. 8.   Conduct an awareness campaign to educate businesses about the existence of the Crime Prevention Office and its benefits.
9. 9.   Develop and implement business watch initiatives and ensure that they are advertised effectively to businesses.
10. 10. Launch and promote a 'Mind your Business' website which outlines best practice methods and tools for business crime prevention. 

 

In conclusion Fielding stated; "SMEs are particularly vulnerable to business crime as they lack scale and therefore experience greater difficulty in absorbing the direct and indirect costs of victimisation. This type of crime is often seen as victimless but it has a very real impact on employers and their staff. The €1.62bn that is being drained from the economy through business crime could be better used in creating jobs and developing businesses; if Government would only make this issue a priority."

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