A Supply Chain Coordination Mechanism with Cost Sharing of Corporate Social Responsibility

Liu, Yong; Quan, Bing-ting; Li, Jiao; Forrest, Jeffrey Yi‐Lin

doi:10.3390/su10041227

Cited by 24 publications

(15 citation statements)

References 42 publications

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“…Therefore, the introduction of fair concerns into the closed-loop supply chain can more clearly reflect real decision-making. To this end, Liu et al [21] and Li et al [22] considered the equilibrium pricing strategy and utility of the dual-channel supply chain under the three conditions of only the manufacturer's fair concern, the retailer's fair concern, and the fairness of both parties. They showed that fair concern affects the utility level of decision-makers, and the revenue sharing contract is designed to achieve coordination.…”

Section: Literature Reviewmentioning

confidence: 99%

An Efficient Approach for Coordination of Dual-Channel Closed-Loop Supply Chain Management

et al. 2018

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In this paper, a closed-loop supply chain composed of dual-channel retailers and manufacturers, a dynamic game model under the direct recovery, and an entrusted third-party recycling mode of the manufacturer is constructed. The impact of horizontal fairness concern behavior is introduced on the pricing strategies and utility of decision makers under different recycling models. The equilibrium strategy at fair neutrality is used as a reference to compare offline retails sales. Research shows that in the closed-loop supply chain of dual-channel sales, whether in the case of fair neutrality or horizontal fairness concerns, the manufacturer’s direct recycling model is superior to the entrusted third-party recycling, and the third-party recycling model is transferred by the manufacturer. In the direct recycling model, the horizontal fairness concern of offline retailers makes two retailers in the positive supply chain compete to lower the retail price in order to increase market share. Manufacturers will lower the wholesale price to encourage competition, and the price will be the horizontal fairness concern coefficient, which is negatively correlated. In the reverse supply chain, manufacturers increase the recycling rate of used products. This pricing strategy increases the utility of manufacturers and the entire supply chain system compared to fair neutral conditions, while two retailers receive diminished returns. Manufacturers, as channel managers to encourage retailers to compete for price cuts, can be coordinated through a three-way revenue sharing contract to achieve Pareto optimality.

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Section: Literature Reviewmentioning

confidence: 99%

An Efficient Approach for Coordination of Dual-Channel Closed-Loop Supply Chain Management

et al. 2018

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“…The sustainable development of a supply chain is essential because it is of great significance to the consumers, the supply chain, the region, and even to the whole world, in terms of the economy, environment, and society [2]. With the evolution of the market competition pattern, the competition between one enterprise and another has gradually evolved into the competition between one supply chain and another [3]. However, the competition of a supply chain is more embodied by the comprehensive competition of a sustainable development [4,5].…”

Section: Introductionmentioning

confidence: 99%

Decision and Coordination in a Dual-Channel Three-Layered Green Supply Chain

Song

2018

Symmetry

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This paper investigated, for the first time, the game and coordination of a dual-channel, three-layered, green fresh produce supply chain, with regard to its economic, social, and environmental performance. Considering that the market demand is dual-channel priced and sensitive to the degree of greenness and the freshness-level, four game models, under different scenarios have been established. These included a centralized scenario, a decentralized scenario, and two contractual scenarios. The equilibrium solutions under the four scenarios were characterized. From the perspective of a sustainable development, the economic, social, and environmental performance of the supply chain was analyzed. To enhance the supply chain performance, two contract mechanisms were designed and the conditions for a multi-win outcome were obtained. Accordingly, many propositions and management implications were provided. The results showed that, (1) compared to the centralized supply chain case, the performance of the decentralized supply chain case is inferior; (2) in addition to increasing the concentration of the supply chain decisions, the two contracts proposed can effectively coordinate the green supply chain and improve its sustainable performance; and (3) the performance of the supply chain is positively driven by the consumers’ sensitivity to greenness degree and the freshness level of fresh produce. This paper fills a research gap and helps the participants of the channel recognize the operational decision principle of a complex green supply chain, in order to achieve a higher and a long-term sustainable-development performance.

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“…Modak et al [51] introduced CSR into a dual-channel supply chain and analyzed the impact of manufacturers' CSR behavior on supply chain decision-making and coordination. Liu et al [52] introduced CSR to a supply chain with multiple suppliers competing, and studied supply chain coordination issues that consider CSR behavior. Panda et al [30] earlier introduced CSR to CLSCs, and research indicates that manufacturers' CSR behavior is conducive to improving the recovery rate of waste products and the performance of CLSCs.…”

Section: Corporate Social Responsibility (Csr) and Corporate Donationmentioning

confidence: 99%

Closed-Loop Supply Chain Models Considering Government Subsidy and Corporate Social Responsibility Investment

2020

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In addition to pursuing profits, more and more international enterprises are beginning to pay attention to environmental sustainability and corporate social responsibility (CSR). How to effectively encourage enterprises to undertake more CSR and maintain the sustainable development of society has become an urgent task for managers and researchers. Under this background, this paper considers the recycling of used products for environmental sustainability and takes into account profit donation as a CSR investment. Aiming at the decision-making of single-cycle closed-loop supply chain (CLSC) with a dominant retailer when considering government subsidies and CSR investment, and based on the Stackelberg Game analysis technology, we formulate three distinct donation (CSR investment) models; the centralized system’s donation model, the manufacturer’s donation model, and the retailer’s donation model, and by doing system comparisons and numerical examples to analyze the impact of government subsidy and CSR investment on new product pricing and waste product recovery from the perspectives of government, environment and CLSC system. The results show that government subsidy is not only conducive to expanding market demand and increasing waste recycling rates, but also to improving CSR investment levels. Under the two decentralized decision-making models, regardless of whether the dominant retailer makes CSR investment, she can always get more channel profits than the manufacturer. From the view of environmental, economic, and social perspectives, the manufacturer makes CSR investment a better choice, and at this time the government has the best effect of implementing subsidy. Finally, based on the principle of cost sharing, a CSR cost sharing contract which can realize the coordination of CLSC is designed to solve the channel conflict and optimize the decision-making. Counterintuitively, the dominant retailer can gain more profits when it bears more cost in the CSR cost sharing contract.

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A Supply Chain Coordination Mechanism with Cost Sharing of Corporate Social Responsibility

Cited by 24 publications

References 42 publications

An Efficient Approach for Coordination of Dual-Channel Closed-Loop Supply Chain Management

An Efficient Approach for Coordination of Dual-Channel Closed-Loop Supply Chain Management

Decision and Coordination in a Dual-Channel Three-Layered Green Supply Chain

Closed-Loop Supply Chain Models Considering Government Subsidy and Corporate Social Responsibility Investment

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