                              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 companys 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 hinttell 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.
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