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Touchy, touchy subject.
First of all, simply overhearing can be construed as heresay, and more than likely, nothing will be done in terms of investigation. Should you feel obligated to still report it, make sure it is DOCUMENTED.
However, if you actually WITNESS hazing, if you don't report it, you only help propagate it. The high school in Chicago should be proof enough, that, left unchecked, sooner or later "harmless fun and games" can turn very dangerous!
I've been in this position - and I've reported to a chapter advisor that his active members were hazing (I saw it for myself, they weren't even attempting to hide it). The chapter was placed on probation, righted itself temporarily, but then reverted and was eventually closed.
It was a very difficult decision to make, nor was it popular, but ultimately the right one.
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