Renaldo$$s Boutiques, Incorporated, has $14$ stores located in a midwestern part of the United States. Renaldo, the president of the company, has set budgets for each store that do not allow for lost, stolen, or misplaced merchandise $($inventory shrinkage$).$ Research shows the disappearance of store merchandise is attributed to a combination of internal and external causes.

Customer theft$35$ percent

Employee theft$40$ percent

Administrative errors$18$ percent

Vendor dishonesty$7$ percent

Which philosophy do you believe Renaldo is following?