Exchange Theory in Business Ethics: Building Trust and Business Sustainability

Abstract

This article presents an in-depth review of the role
of exchange theory in the context of business
ethics, with a focus on how this theory plays a key
role in building trust and sustainability in
business interactions. Exchange theory is a key
foundation in understanding ethical business
behavior, which considers relationships between
stakeholders, mutual benefits, and social
responsibility. We begin by discussing the origins
of exchange theory, which is rooted in
utilitarianism, and explore core concepts such as
utilitarianism, fairness, transparency, and social
responsibility. We outline how exchange theory
provides a foundation for quality business
decision making, by foregrounding the moral
aspects of business. Furthermore, the purpose of
writing this article is to determine the relevance of
exchange theory in the modern business
environment. We explore how companies can
leverage the principles of exchange theory to build
strong relationships with customers,
shareholders, and society as a whole. We discuss
the role of exchange theory in dealing with ethical
dilemmas in global business, where different
cultures and norms collaborate. Additionally, this
article highlights the role of exchange theory in the
context of sustainable business. We discuss how
the principles of exchange theory can guide
companies in confronting pressing environmental
and social issues, and making positive
contributions to society. By investigating various
dimensions of business ethics through the lens of
exchange theory, this article emphasizes that
strong business ethics are key to building
sustainable businesses and realizing stakeholder
trust