A Culture of Honesty for Cannabis Businesses

A Culture of Honesty for Cannabis Businesses

While most cannabis business owners believe that external robberies or burglaries are their greatest threat, internal employee theft is actually one of the biggest interrupters in the growth and success of a business. One way to prevent and deter internal theft is to create and implement a Culture of Honesty. An employee Culture of Honesty ensures that the business is better protected from internal theft and diversion. By establishing trust and accountability between managers and employees, staff are less likely to attempt to steal, and if they do, this event is more likely to be discovered and reported by other employees. A Culture of Honesty not only reduces losses, but can be crucial to the long-term success of the business.

Creating a Culture of Honesty

Creating a Culture of Honesty starts by ensuring that processes and systems are in place to establish accountability among staff. In addition to physical security measures like video surveillance systems, cannabis businesses should create written policies and procedures that promote transparency and honesty in the workplace. This can include written guidelines on reporting, employee expectations, and prohibited actions.

The responsibility to maintain this culture should be shared between management and  employees, but it is management’s responsibility to ensure these policies and procedures are clearly communicated. Management should promote an “open door” policy so that employees feel comfortable reporting potential concerns.

One way to encourage open and honest communication is to have periodic staff meetings to address potential concerns, changes to policies or procedures, or provide a refresher course of security or safety training. Setting aside time to invest in fostering an honest environment is an effective way to proactively reduce risks and losses before they occur.

Implementing a Culture of Honesty

Implementing a Culture of Honesty starts during the hiring process. All employees, managers, or other individuals involved with the cannabis business should have a thorough background check conducted prior to employment. In many states like California and Illinois, this is required by regulations. Depending on the regulations, cannabis businesses may need to have this background check conducted by a private agency or law enforcement. In addition to background checks, cannabis business management should conduct a detailed review of prior employment history and interview the employee prior to hiring.

Employee training is another important part of implementing a Culture of Honesty. Training should be completed within 30 days of hire and should be repeated annually. This ensures that all staff all familiar with the policies and procedures of the cannabis business and are aware of their role in maintaining a Culture of Honesty.

Whether small or large, a cannabis business must set a moral standard, or culture, of honest and ethical behavior within the workplace. A lack of honesty can be detrimental to long-term growth of the business as it is more likely to be subject to internal theft and diversion. By valuing and practicing honesty in the workplace, cannabis businesses and their employees can better guarantee the success of the business.

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have created and implemented this Culture of Honesty in multiple cannabis businesses throughout the United States. Let us know how we can help you and your business! Follow us on social media to stay up to date with security tips and best practices for the cannabis industry.