Racism Charges Rock Retailers: How Would you respond?

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

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 types of challenges will speak volumes to employees, customers and media watching with intensity…

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

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• 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 own 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 engaged with these challenges and are 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 discipline alone to prevent these sorts of behaviors.

If this was your response, 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 weren’t looking. Six months before the first allegations arose, who would believe they had would face these allegations.

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 worth your time:

• Take a minute and find out what's really going on: Retail executives should be curious about what’s going on in this area of your company. When is 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 lie. 
• Tell a friend's teenager what you expect - if they get it, you're on the right track to clarity: Asset protection leaders especially should strive to create clarity in their organizations. Communicate expectations clearly and often. If you're not discussing hard topics like race and diversity, you're missing out on influence; it's all but certain, they're talking about these issues and your voice should be heard. Policies should be clear, accessible, and current - when last have 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 work to effectively and professionally perform investigations on customer dishonesty.
• Be careful about your goal - 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 affect 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 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.

If shared with the world, what would your customers say about your organization’s response?

Strongside retail clients have benefited from consulting services such as policy review and development, and training courses to help employees handle upset customers and protect themselves from physical aggression.