Socially responsible supply chains with cost learning effects

2020 ◽  
Vol 54 (1) ◽  
pp. 119-142
Author(s):  
Junjun Kong ◽  
Feng Yang ◽  
Tianzhuo Liu

Corporate social responsibility (CSR) has been attracting increasing attention. This paper investigates the implications of CSR upon a two-period manufacturer–retailer supply chain with cost learning effects which have been widely observed in different industries. Two scenarios are under consideration: the retailer exhibits CSR in one and the manufacturer does in the other. The analytical results demonstrate that compared with no CSR, the implementation of CSR generates higher pure profit for the entire chain. In contrast to the scenario where the manufacturer shows CSR, in the scenario where the retailer exhibits CSR, the manufacturer charges higher wholesale prices while the retailer charges lower retail prices, resulting in a higher chain-wide profit. Moreover, two-part tariff contracts are designed to coordinate the socially responsible supply chains. When coordinated, if the retailer exhibits CSR the wholesale prices are equal to the realized production cost which results from cost learning effects, while the wholesale prices are lower than the realized production cost if the manufacturer shows CSR. Interestingly, cost learning effects impair the pure profit of the coordinated supply chain when the effect of CSR is sufficiently high.

2007 ◽  
Vol 3 (2) ◽  
pp. 77-83 ◽  
Author(s):  
Mohd Nishat Faisal

Today, the use of corporate social responsibility (CSR) initiatives to influence consumers and differentiate product offerings has become an important aspect of overall corporate strategy. The main purpose of this paper is to understand corporate social responsibility in a supply chain setting. This paper identifies dimensions of the supply chain which are important to be considered for making the whole supply chain socially responsible. Drawing upon insights from available literature on CSR and supply chain, this article reports the major findings of an empirical study. The study reported in this paper highlights the viewpoint of small and medium enterprises with regard to CSR in supply chains.


2017 ◽  
Vol 2017 ◽  
pp. 1-8 ◽  
Author(s):  
Massimiliano Ferrara ◽  
Mehrnoosh Khademi ◽  
Mehdi Salimi ◽  
Somayeh Sharifi

In this paper, we establish a dynamic game to allocate CSR (Corporate Social Responsibility) to the members of a supply chain. We propose a model of a supply chain in a decentralized state which includes a supplier and a manufacturer. For analyzing supply chain performance in decentralized state and the relationships between the members of the supply chain, we formulate a model that crosses through multiperiods with the help of a dynamic discrete Stackelberg game which is made under two different information structures. We obtain an equilibrium point at which both the profits of members and the level of CSR taken up by supply chains are maximized.


2016 ◽  
Vol 27 (1) ◽  
pp. 99-123 ◽  
Author(s):  
Paul F. Skilton ◽  
Jill M. Purdy

ABSTRACT:We explore the essential contestedness of corporate social responsibility (CSR) by framing the interplay between CSR activities and stakeholder evaluations as a contest for jurisdiction over what it means to be socially responsible. This contest arises because firms and stakeholders are often guided by incompatible sensemaking systems. To show why context matters we show how stakeholders evaluate the authenticity of CSR activities on the basis of schemas for responsible behavior on one hand and their perceptions of firm identity on the other. This process can generate complex evaluations whose meaning depends on the distribution of power in fields and the extent to which pluralistic sensemaking systems are compatible. By positioning authenticity evaluations within a framework that describes the state of power and pluralism within which they are produced, we are able to present a systematic explanation of how and why stakeholder responses to CSR vary over a range of settings.


2016 ◽  
Vol 10 (2) ◽  
pp. 256-271 ◽  
Author(s):  
Bei Zhang ◽  
Jiabao Lin ◽  
Renhuai Liu

Purpose This study aims to examine the factors shaping food firms’ intentions to control quality safety in the context of government regulation in China. Design/methodology/approach Based on 180 usable data samples collected via a survey, structural equation modeling and moderated multiple regression analysis were used to examine the research model. Findings It was found that quality safety capability, corporate social responsibility, collaboration between parties along supply chains and information-sharing among supply chain members have had different impacts on the intentions of food firms to control quality safety. It was also found that government regulation has a positive moderating effect on corporate social responsibility and on collaboration between organizations in a supply chain. Research limitations/implications This research is limited to a particular sample: i.e. the managers of food firms from Guangdong Province in China. Thus, the results need to be generalized to encompass wider samples. Originality/value Previous studies have not explained well the mechanisms by which quality safety control has been established among China’s food firms. This study builds a theoretical framework for the factors affecting intentions to control quality safety by examining issues from the perspectives of food firms and by taking into account the characteristics of food supply chains. This approach addresses the gaps in current understanding and provides practical support to promote quality safety among food firms in China.


2019 ◽  
Vol 30 (2-3) ◽  
pp. 213-231
Author(s):  
Grit Tanner ◽  
Eva Bamberg ◽  
Carolin Baur ◽  
Marlies Schümann

Workplace health promotion (WHP), which is supported by networks and business partners, is an important issue of corporate social responsibility. In an interview-study with enterprise and industry representatives, we analyzed whether WHP as one aspect of CSR is already realized within the supply chain and how interactions within the supply chain and networks can be described in terms of WHP. The results showed that issues of occupational safety are relevant within business relationships, but WHP in general is found to be less so. Networks outside the supply chain are often used to support WHP. The most-mentioned practice to ensure occupational health in supply chains is the control of suppliers (e.g., through audits). Collaborations (e.g., joint projects) were somewhat less stated. In conclusion, enterprises need to establish internal structures to conduct successful WHP within their supply chain. Future research should investigate factors that foster or hinder the process of establishing WHP within supply chains.


Entropy ◽  
2021 ◽  
Vol 23 (5) ◽  
pp. 564
Author(s):  
Jialiang Huang ◽  
Xiaoxia Wang ◽  
Yuxi Luo ◽  
Liying Yu ◽  
Ziyuan Zhang

In order to explore the impact of a manufacturer’s or retailer’s undertaking corporate social responsibility (CSR) and different power structures on their joint green marketing decisions and profits in the green supply chain, this paper establishes green supply chain optimization models under six different decision-making scenarios according to two different CSR bearers and three different power structures. Based on the main assumptions of a linear product demand function and CSR measured by consumer surplus, this paper solves the equilibrium solutions of the manufacturer and the retailer through game theory. The results show that: First, the difference in the degree of CSR undertaken by manufacturers and retailers leads to a difference in the ranking of optimal strategies of both parties under the three power structures. Second, under the same power structure, compared with undertaking CSR by oneself, when the other party undertakes CSR, the level of the product’s green degree, the level of green promotion, the party’s own profit, and the profit of the other party are all higher. Third, regardless of the power structure, manufacturers and retailers undertaking CSR is conducive to improving the level of product greenness, increasing green promotion, lowering the retail price, increasing consumers’ willingness to buy green products, and ultimately helping to increase the profits of manufacturers and retailers.


2019 ◽  
Vol 19 (2) ◽  
pp. 255-276
Author(s):  
Guli-Sanam Karimova ◽  
Stephen A. LeMay ◽  

In recent years there has been an increased interest in the research dedicated to the ethics and morality of supply chains. The concept of Corporate Social Responsibility (CSR) dominates literature on supply chain ethics in management education. The objective of this paper is to develop some propositions to complement and look more broadly and differently at these management concepts. Supplementing these concepts with the fundamental questions on the meaning of ‘what a moral supply chain is’ and ‘what moral supply chain ought to be,’ we develop some descriptive and normative propositions for management education on the ethics of supply chains. Against a descriptive viewpoint, we propose that judgments on the morality of supply chains should be viewed from multiple perspectives, often conflicting. Against a normative viewpoint, we propose some reflections on how to apply Aristotelian practical wisdom in management education on supply chain ethics.


2020 ◽  
pp. 000765031989849 ◽  
Author(s):  
Maria Jose Murcia ◽  
Rajat Panwar ◽  
Jorge Tarzijan

Implementing corporate social responsibility (CSR) in supply chains is not a trivial task. In fact, many firms in recent years have publicly proclaimed that in order to keep their CSR commitments, they had to reduce reliance on external suppliers by vertically integrating their operations. Our aim in this article is to examine whether there is truly a relationship between a firm’s CSR performance and its level of vertical integration. Drawing on a multi-industry sample of 2,715 firm-year observations, and after addressing endogeneity concerns, we demonstrate that firms with higher CSR performance tend to vertically integrate more (or, outsource less). We also demonstrate that this tendency is weaker for firms that have higher degrees of asset specificity or international diversification. Our core conclusion is that CSR performance and outsourcing are at odds, but firms can reconcile this tension by deepening their collaborations with suppliers.


Author(s):  
George C. Davis ◽  
Elena L. Serrano

Chapter 13 first looks at how changes at one level in the food supply chain may affect prices and quantities at another level via profit maximization. The chapter then considers firms that are closer to the consumer (e.g., restaurants) who will often be able to set their own prices and consider the analytics of profit maximization under this scenario. Utilizing this framework, the chapter considers the question: Are healthier foods more or less profitable than unhealthy foods? This leads naturally to a discussion of market segmentation, the limit of the market, and the distribution of healthy and unhealthy foods in the food system. As there are many calls for food firms to be more socially responsible and offer healthier foods, the chapter utilizes the framework to explore the implications of corporate social responsibility and how compatible that idea is with profit maximization.


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