It has been claimed that the market fosters selfishness and thereby undermines the moral

basis of society. This thesis has been developed with an emphasis on market exchange.

Everyday life is, however, predominantly shaped by interactions in the workplace rather than

by shopping behaviour. This essay places emphasis on firm organisation, rather than market

interaction, in moulding cultural traits. The argument starts with the observation that workers

may perceive the employment relationship in two different ways, with different behavioural

consequences. The first is the conventional incentive view. The other is the social exchange

view. Implementing the social exchange perspective may be profitable for firms which

organize complex tasks. This requires an appropriate corporate culture, governed by

reciprocity, fairness and commitment. Such a culture can be viewed as a refined form of

exploitation, however, as it involves creating an atmosphere of mutuality for profit. I shall

argue against this thesis that the same attribution mechanisms which render corporate

culture an effective management instrument shape the self-perception of management and

engender true, rather than faked, social exchange. The market shapes firm organizations

which foster mutualism rather than selfishness.

Keywords: theory of the firm, corporate culture, organizational citizenship, reciprocity