Final answer:
Employee crime can include embezzlement, larceny, corporate crime, and identity theft, each causing substantial impacts such as financial losses, legal issues, and loss of trust which can damage an organization's operations and reputation.
Step-by-step explanation:
Types of Employee Crime and Impact on Organizations
Employee crime can be classified into four major types, each with distinct impacts on an organization. Embezzlement, for example, involves an employee misappropriating funds or property entrusted to them, which can lead to significant financial losses and erode trust within a company. Larceny, or theft, can include the stealing of company goods or information, similarly resulting in financial harm and loss of proprietary information. Instances of corporate crime like insider trading profoundly affect not only a company’s finances but also its reputation, regulatory standing, and can lead to severe legal consequences. Finally, identity theft committed by employees against their employer can result in massive data breaches, loss of customer trust, and legal penalties.
The impact of these crimes on an organization can be devastating. Financial losses can cripple a company's operations, legal costs and penalties can be exorbitant, and the loss of trust both internally and from the public can be difficult to recover from. This all can lead to a decline in employee morale, an increase in turnover, and a tarnished brand image.