The remainder of the paper is organized as follows. Section 2 provides a broad overview of the relevant literature and introduces a series of hypotheses that are based on an integration of literature from business ethics, marketing channels and exchange theory. Section 3 describes the design of the study, while the results from the focus group interviews and responses to the surveys are reported in Sections 4 and 5. A description of the development of the scales used to assess unethical buyer and supplier behavior is provided in Section 6, and the results from the hypothesis testing are presented in Section 7. The study’s implications and conclusions are discussed in Section 8. The paper ends with a summary of its contributions and limitations, and suggestions for future research in Section 9.