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Luxury merchandisers are burning unsold merchandise valued over $600 million each year. Destroying clothing is a common practice amongst fashion merchandisers in order to keep the price of goods high and the availability of products low. We examine the improper disposal of deadstock when luxury and fast-fashion marketers slash and burn their unsold goods. First, we describe what fashion merchandisers are doing and why they are destroying goods. Second, we provide brief case studies of fashion firms. Third, we present a conceptualization of social irresponsibility and responsibility. Finally, we offer a set of recommendations for managers to i) better respond to stakeholder demands, ii) enhance forecasting through technology, iii) implement a circular economy model, and iv) improve reporting practices.

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Elizabeth Napier

Elizabeth Napier

PhD Scholar at Georgia State University

Elizabeth Napier is a PhD Scholar at Georgia State University. Her research focuses on the investigation of multinational firms and their interaction with local economies and environments. She studies the utilization of strategic corporate social responsibility as a...

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Francesca Sanguineti

Francesca Sanguineti

University of Pavia

Francesca Sanguineti is a third-year doctoral student from the University of Pavia, Italy. After having occupied managerial roles in the retail fashion industry, she decided to pursue a career in research and academia and began her Ph.D. studies in Applied Economics and...

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