                         Discounting

[]  This sample memo is an excerpt of the Discounting policy
included in the Employee Manual under "Other Policies."

[]  Abuse of the employee discount system and "no charging"
customers are very serious forms of business/workplace abuse
(same as theft) in many firms.  It is easy for employees to
rationalize discount abuse, because discounting is not
considered "stealing."  Compounding this perception is the
fact that companies often promote a discounting program
without nearly enough emphasis on the program's limitations.

[]  One way to demonstrate your concerns is to distribute a
memo addressing the issue of discounting.  Following is an
example of a possible memo that might be used (with
appropriate revisions) to meet the specific needs of your
organization:


TO: All (Company) Employees

Employees giving discounts to friends is one of the most
common abuses any company can face -- we understand that it
can be tempting to give friends a "good deal."

Yet, for every free or reduced-price item that a customer
receives, there's yet another dent in the company's
profitability.  Remember, the smaller that this
profitability becomes...

  *  the less merchandise we can afford to buy;
  *  the higher the prices we will have to charge;
  *  the less likely we can afford to increase your pay;
  *  the fewer employees we can afford to keep; and
  *  the lower the chances that we can hire some much needed help.

As a reminder, this is our company's policy concerning
employee discounting:

  The discount privilege is offered for the use of employees
  and the members of their immediate family.  Under no
  circumstances should company products be removed from the
  premises unless accompanied by a receipt from (Company).
  Employees are permitted to buy company products at a
  discount for personal use or to give as gifts, but it is
  an abuse of the discount privilege to buy items from
  (Company) on behalf of people outside your immediate
  family.  (Company) considers such behavior a form of theft
  and violators will be treated accordingly.

When faced with the temptation to give discounts to friends,
please decide against it.  If you're being pressured,
explain that you could lose your job over it (you could!).

If you become aware of a fellow employee about to give a
friend (or customer) an unauthorized discount, drop a hint
-- tell him or her something like "I don't think that's a
good idea," or "Remember, that discount's just for employee
use."  If you know of others who have discounted or given
away items in the past, please discuss the matter with your
manager at your convenience.

We must continually work together to remove the threats
posed by unauthorized discounting.  This is a (Company)
priority.  Thank you for your concern and cooperation.

