Social Exchange Theory and how it relates to Philanthropy

Abstract

This paper briefly explains the comparison between Social Exchange Theory and the theory of philanthropy. The main purpose of the theory of social exchange is that people need multiple types of rewards they can get only by interacting with other people. People involved in social relationships because they expect that they will be rewarded, and continue the relationship because they get something to aspire to. Rewards in the process of social interaction can be social approval, respect, status, and practical assistance. According to this theory, our social behavior is largely due to the expectation that our actions towards others will be rewarded in some way. Relations between people are based on a mutually beneficial exchange. Similarly, philanthropy is focused on voluntarily involve in charity giving which can be based on benefiting society as whole and in return, the donors get both tangible and intangible rewards including political benefit, taxes, building good image among people and participating in corporate social responsibility.

Social Exchange Theory and how it relates to Philanthropy

Introduction

Psychology is basically, the applied and academic discipline, which involve scientific understanding and study of the mental behavior and processes. It is also give relation to the application and knowledge of the activities of human, including the problems and difficulties related to the daily life of the individual and the treatment of the mental or psychological disorder. The science of psychology is different from the other anthropology, social science, political science, sociology, and economics for defining and to explain the mental behavior and processes of the life of the individual. It is typically related to the mental behavior of the human or the life of the individual who is facing difficult circumstances in life. Psychology is different from neuroscience and biology in that, it is normally concerned or related with the interaction or relation of the intellectual behavior and processes on the systematic level, as it opposed to understanding the neutral or natural processes themselves (uk.sagepub.com, 2004). The subfield of the neuropsychology in contrast, is related to the studies of the actual neutral process and how they concern the effects on the mental side. The biological psychology is related to the scientific study of the biological fundamental basis of the actions and psychological states.

The philanthropy is the charitable effort for the benefit of the mankind. It is the effort to increase the well-being of the humanity and mankind. It can be the institution or the trust working for the favor of the mankind. The social activates for the favor of humanity and their affects on the society also comes in the criteria of the philanthropy. It is the big effort to support humanity by the people of the society and to serve the people in the society who are unable to full fill their basic needs (Sargeant and Shang, 2011).

The term Social Exchange Theory refers to the change of material and social resources combined to form a basic human interaction ...