Racism Charges Rock Retailers

(Originally posted in August 2014, this article has been updated and re-posted because the challenges discussed in it are still relevant as they're still being faced by organizations across the U.S.)

Accusations of racism and mistreatment, intense media scrutiny, fines of more than half a million dollars, mandatory implementation of costly measures to overhaul policies and systems…

This is the reality two prominent New York retailers faced after a series of troubling allegations. The impact on these prominent retailers, though not devastating, is arguably disastrous. How retailers and asset protection leaders respond when facing these challenges will speak volumes to employees, customers, and the media who are watching.

Of the many allegations made against the two prominent New York retailers, the most troubling included:

• Using racial profiling to target and accuse customers of crimes. By itself, this allegation should keep leaders up at night until they have a strategy that makes them confident their organization repels racist tactics.
• Falsely accusing customers of crimes. The days of "catching shoplifters" should quickly be replaced with strategies, tactics, and supporting training for professional investigations.
• Mistreating customers physically and verbally. This is made worse by cultural norms we're not aware of or don't pay attention to.
• Inappropriately using relationships with law enforcement partners to circumvent their policies. This often comes from a strategic error that has become more apparent (and less tolerated) in recent years.

Allegations like those above taint reputations and create significant exposure for retailers. If these issues haven’t grabbed your attention, the historic reaction by the media and the government should.

Retailers and specifically asset protection professionals are at risk. These are serious charges. The good news is that many retailers have been addressing these challenges and committed to a professional response.

However, some leaders may be thinking, “That will never happen here”. They believe their team is full of good people who wouldn't do these things. Or, they're relying on policies and threats of discipline to prevent these sorts of behaviors.

If any of these are your responses, I suggest you consider another course of action. Neither of the prominent New York retailers under scrutiny likely saw this crisis coming for that very reason. They thought they had addressed the issue. Six months before the first allegations arose, who would believe they were about to face these allegations and the ensuing firestorm?

Where are you on the spectrum of response? Whether you think you have nothing to worry about or you’re actively engaged and committed to being sure, here are three responses to the possibility of these allegations that are worth your time:

1. Take a minute and find out what's really going on in your organization. I know you think you know, but there’s always more to know. Retail executives should be curious about what’s going on in this area of your company and how people feel they’re being treated. When was the last time you explored your asset protection team’s policies, training, and leadership? Even more basic, do you know what they are trying to accomplish and how? Do you agree? The "war stories" they share are a good indicator of where your issues may lie.
2. Check your clarity by telling a young teenager what you expect from your employees. If they get it, you're on the right track to clarity and clarity is something asset protection leaders especially should strive to create.
   • Clarity is strengthened when you communicate expectations often.
   • Policies should be clear, accessible, and current. When was the last time you reviewed your policies in detail? They should be written to impact behavior not simply to protect you from lawsuits.
   • Tools, such as effective training, should support your asset protection professionals as they perform investigations on customer dishonesty.
   • If you're not discussing hard topics like racial tension, you're missing out on using your influence. It's all but certain, employees are talking about these issues and your voice should be heard.

3. Know what it means to “win” on this issue. And make sure your employees know, too. What does the RIGHT win really look like? Asset protection professionals should be reminding management that customer dishonesty investigations aren’t simply a matter of productivity and profitability. They have a significant effect on customer experience, employee behavior, and your company's brand essence. Getting these investigations wrong isn’t simply a matter of getting sued. Your investigations are about people, they impact real people. Being accused of a crime is scary. Being falsely accused is humiliating. Believing that you were watched because of your race feels like a betrayal. Don’t be wrong, be careful!

Asset protection is a vital function in today's world. Protecting people, things, and reputations takes influence. Influence is not an entitlement; it’s earned by what you do and how you do it.