Abstract

Ethics is integral to the social fabric, serving as a spiritual cornerstone for the continuity and progress of society. However, business ethics appears to have shifted in recent years, with ongoing debates around the nature of ethical and unethical practices in various markets. This study investigates the dynamics of market ethics in the traditional bazaar of Yazd, Iran, against the backdrop of a perceived decline in ethical standards and fairness. Using a qualitative-interpretive approach and grounded theory methodology, we conducted in-depth interviews with 21 seasoned marketers (aged 34 to 79) from the Zargari, Khan, and Shahzad Fazel markets, each with over 15 years of market experience. The analysis identified several main categories, including the erosion of trust, material preferences, the negative effect of virtual space, reducing the influence of religion, economic problems and inflation, the formation of competitive market, and lack of proper supervision. The core category, “erosion of moral capital in the marketplace,” emerged from these categories, encapsulating the broader shift. Findings indicate a notable decline in market ethics, driven by intersecting social, individual, and environmental factors. This study offers insights into the complex factors influencing ethical degradation in traditional markets and underscores the need for renewed attention to ethical standards in commercial environments.