Criminal activity against business worst in Connacht
The Connacht/Ulster region has a higher level of criminal activity against businesses than any other region in Ireland, including Dublin, writes David Dwane.
The figures come from a major survey by the Irish Small and Medium Enterprises Association, which confirms that 37% of businesses in this region have been the target of criminal activity over the last twelve months.
Nationally, one third of business in Ireland has been the target of criminal activity during the past year, costing firms an estimated €1.5bn. This cost is in addition to the burden placed on many businesses by the recession.
The Dublin region has recorded the biggest drop in the level of criminal activity, down from 43% to 24% in a year.
The survey of over 1,800 businesses outlines that, while the level of crime is down on the previous year (when 35% of companies were affected), there has been an increase in the actual cost of criminal activity. This suggests that criminals are becoming more sophisticated and increasing the yield from their activity.
Crime against retailers is a particular problem, showing a large increase from 44% in 2008 to a high of 63% this year. Shoplifting is a major element of criminal activity in this sector. This compares to 26% for manufacturing companies, 25% for construction, 28% for service and 32% for distribution companies. ‘Theft by outsiders’, reported by 36% of respondents, was the most common form of crime.
The direct cost of criminal activity for SMEs is estimated at €472m per annum, or €5,890 per company. This figure increases dramatically when added to the €957m, or €3,937 per company, spent on crime prevention methods including alarms, CCTV, security guards etc.
According to ISME, the indirect costs of crime cannot be underestimated. For example, 25% of SMEs who suffered from criminal activity identified disruption to trading as being a particular problem with 15% indicating that crime led to ‘poor staff morale’.
The use of alarms remains the primary weapon for crime prevention, with 73% of companies having an alarm on their premises. This was followed by 48% who use alarm response and 47% using CCTV.
Computer related and e-crime continues to be problematic with 28% of companies experiencing computer related crime in the last 12 months.
Only 7% of business owners are confident that criminals would be apprehended.
Just 1% felt that the judicial system was effective, while a massive 86% felt that the judicial system is ineffective.
When questioned on what measures should be taken to prevent crime the following was the response from those firms surveyed:
* 87% would like an increase in CCTV in town centres.
* 86% of SMEs indicated that they would be in favour of a significant increase in Garda visibility.
* 79% would encourage tougher sentencing by the Courts.
ISME would like to see mandatory sentences for crime against business, and a reduction in the length of time it takes for cases to be heard.
It also recommends increased CCTV surveillance in town centres, and encourages the development of ‘business watch’ initiatives.
The judiciary come out extremely poorly from the survey results, with only 1% outlining that the system is effective in adequately deterring repeat criminal activity. “This is an awful indictment of our judiciary and reinforces the perception among small business owners that crimes against their businesses are not viewed as ‘real’ crime and therefore are not taken seriously. Until the issue is addressed at official level and adequate action is taken against the perpetrators, business owners will not invest time and money in reporting a crime,” stated ISME.
“While businesses and ownermanagers have a significant role to play themselves in combating criminality against their companies, through adequate security precautions, staff training and general vigilance, the ultimate responsibility rests with those in charge of law enforcement, in order to prevent, apprehend and adequately prosecute and punish those responsible for perpetrating criminal acts. Unfortunately, particularly in the case of the judiciary, there is currently zero confidence”, continued the ISME statement.
According to ISME the incidence of crime against business, while on a downward trend, still merits considerable attention from the law enforcement agencies, which need to devote increasing resources and energy into ensuring the scourge of crime perpetrated against business is eradicated, not only for the benefit of the business but also for those associated with the business including employers, staff and the local community.
“The cost of crime to businesses, at almost •1.5bn in the last 12 months, is a significant cost particularly in a recession. The consequences of crime, however, impacts far beyond the direct financial aspect. As the survey results confirm there is a significant disruption to business activity with delayed orders, loss of customers, poor staff morale leading to absenteeism, damage to company reputation and increased management time devoted to dealing with the aftermath of crime. These hidden costs have a bigger overall impact on the business than the direct costs of damage, increased insurance and additional security equipment”, said the statement.
Western People
Wednesday, 29th July, 2009