Two-Stage Production System Pondering upon Corporate Social Responsibility in Food Supply Chain: A Case Study

Abstract

Corporate social responsibility (CSR) has witnessed remarkable attention in academic studies as well as being widely conducted in different industries globally. This specific case was chosen as one of the biggest dairy companies that may be represented for Vietnam dairy supply chain management. This research aims to integrate CSR initiatives into food supply chain management to clarify the optimal replenishment policy, paying close attention to the relationship between midstream manufacturers and final customers. The classical economic production quantity model has been employed, relying on the two-stage assembly production system. The three parameters that contribute to the total profit formulation that have been considered consist of the social charity amount for per unit selling, the unit wholesale price of the manufacturer, and the return rate of used goods from the customer. The study has stressed that there is a significant impact from implementing CSR initiatives on the enterprise’s inventory policy that leads to enhance the firm’s financial performance.

Advances in Food Processing (Food Preservation, Food Safety, Quality and Manufacturing Processes)

“…The study shows the close relationship between the company and consumers, which is reflected in its financial performance [13].…”

How Corporate Social Responsibility Affects Firm Performance: The Inverted-U Shape Contingent on Founder CEO

“…Corporate social responsibility (CSR) reflects a corporation's responsibility to society and a wider range of stakeholders other than its shareholders [1], which has drawn tremendous attention from researchers and managers due to its impact on corporate development. CSR has been found to be able to improve corporate performance [2][3][4][5], enhance corporate reputation [6][7][8], promote corporate innovation [9,10], reduce corporate risks [11,12], and maintain corporate stability in the face of emergencies to achieve economic recovery [13]. However, Wright and Ferris [14] found that CSR could damage enterprise value.…”