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Business Ethics Challenge

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There are a few common types of return fraud, which include purchasing the item for a short term and returning it afterwards (wardrobing), returning items in bad conditions, returning stolen items and using fake receipts to return items. Ashton might have committed two types of return fraud, one being "wardrobing , which involves purchasing an item with the intention of using it once and returning it; the other being returning the item in a bad condition. In this case, the items refer to the new suit and accessories for her school professional events. We define an "ethical" action as an act which minimizes negative impacts on other parties. Although actions under "return fraud  are not technically stealing, it is still a violation against the retail policies. However, before analyzing the ethical concerns of such an act, it is necessary to identify her reasons for doing so. From her point of view, the benefits of her actions are twofold: to minimize costs, monetary and non-monetary (e.g. time); as well as to keep up with trends. It is therefore understandable why she decided to employ such a method. However, her actions may arouse certain ethical concerns and consequences to other parties, which will be discussed in our presentation. Our first ethical concern is that she returned the items at their pristine conditions. This, although being a more mild type of "return fraud , is the act of "wardrobing . She didn't intend to keep the product the moment she bought it. This is an abuse of the return policy. The consequence that arises from this concern is the suffering of other consumers. After receiving the items, the company will start implementing stricter retail policies to prevent themselves from being deceived by consumers again. This may also affect other customers who have legitimate reasons to return unused products. For instance, policies like keeping the original packaging, requiring receipt or photo identification f

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