Loss Shifting or Transference

Making your problem someone else's problem who passes on the problem on down the line. Many of these losses are trivial and affordable to a business who could simply stop the cycle and toss out bad merchandise. There is a point where a responsible business must assume the costs of their errors and not pass their problems on to other people.

1. loss-shifting as a way of business. Highly questionable practice ethically.

2. Loss-shifting as a rare event. Every now and then a near catastrophic even occurs in a business. Things just go wrong and there seems no escape from the imposing problem. In the case of selling used cars a dealer can buy a lemon. Things fall apart here and there. To break a way from the problem the dealer will deeply discount the price but not mention the lemon nature of the car. Having poured endless amounts of money into the car the dealer emotionally wants to escape. It is sometimes like walking away from a plane that has just crashed. You are emotionally numbed by the event and just want to get away as soon as possible. This numbing is real and it blanks out any ordinary concerns for doing the right thing.

• Liability Concerns
• Owing Up
• Tolerance