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