1. Continue Westwind’s zero-tolerance policy toward shoplifting. It’s the right thing to do—and it will pay off in the end in higher profitability because the chain’s reputation for being tough on crime will reduce overall losses from theft.
2. Adopt Chris Dykstra’s proposed changes, and show more leniency to first-time offenders. It is a more cost-effective approach to the problem than the current policy, plus it stays close to your father’s original intent.
3. Adopt Chris Dykstra’s proposed changes with an even higher limit of $50 or $100, which is still less than the cost of prosecution. In addition, make sure the policy isn’t publicized. That way you’ll reduce costs even more and still benefit from your reputation for prosecuting all shoplifters.

Chris Dykstra, responsible for loss prevention at Westwind Electronics, took a deep breath before he launched into making his case for the changes he was proposing in the company’s shoplifting policy. He knew convincing Ross Chenoweth was going to be a hard sell. Ross, the president and CEO, was the son of the founder of the local, still family-owned consumer electronics chain based in Phoenix, Arizona. He’d inherited not only the company but also his father’s strict moral code.