Journal Article

Decision analysis of supply chains considering corporate social responsibility and government subsidy under different channel power structures

Liu, Zhi-yang, Ren, Wenwen, Xu, Qian, Liu, Yong

2022

Overview

The development of the sustainable economy has gradually become a consensus, and corporate social responsibility (CSR) is the key to achieving the sustainable development. However due to the implementation of CSR will increase the cost burden of enterprises, some companies are even unwilling to fulfill CSR. At this time, the government often encourages companies to fulfill CSR through subsidies, and consumers are willing to pay a higher price for CSR products. Therefore, this article focuses on the supply chain decision-making analysis problem in the sustainable supply chain. Based on consumer preference for CSR products, considering CSR and government subsidies, some relevant models are constructed to analyze decisions under different power structures and different subsidy situations, then the article compares them and finally draws relevant conclusions. The study found that the higher the consumer's preference, the higher the product sales and CSR level. In addition, government subsidies to manufacturers or consumers have the same effect. Among the three power structures, the overall benefit of supply chain is the highest in VN (Vertical Nash) power structure, so the government should play a leading role and try to narrow any possible gap of channel power.

• Publisher: Springer Nature B.V
• Subject: Consumers / Corporate responsibility / Corporate structure / Decision analysis / Decision making / Environmental impact / Government subsidies / Manufacturers / Operations research / Profits / Social responsibility / Society / Subsidies / Supply chains / Sustainable development / Willingness to pay