This report examines the ethical and sustainability challenges faced by ASOS, an online fashion retailer. It analyzes the company's free return policy and its impact on profitability and the environment. The report utilizes stakeholder theory to evaluate ASOS's ethical commitments and identify areas for improvement. It highlights the environmental concerns related to returns, such as increased emissions and landfill waste. The analysis identifies ethical issues related to packaging, code of conduct, and data privacy. The report proposes alternative solutions, including ethical packaging, an ethical code of conduct, and compliance with data protection laws. Recommendations are provided for ASOS to enhance its sustainability practices, fulfill its responsibilities to stakeholders, and improve its brand reputation. The report emphasizes the importance of ethical approaches and regulatory compliance for long-term profitability and sustainability.