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

  • S.I. : Business Analytics and Operations Research
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Abstract

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.

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Funding

Funding

This work is partially funded by the National Natural Science Foundation of China (71802098;71503103); National Social Science Foundation of China (19FGLB031); National Vocational College Teachers' Teaching Innovation Team Construction Systematic Research Project(TX20200801); Outstanding Youth in Social Sciences of Jiangsu Province; Qinglan Project of Jiangsu Province, Fundamental Research Funds for the Central Universities (JUSRP321016), and the Tender Project from Wuxi Federation of Philosophy and Social Sciences (WXSK21-A-03) and Soft Science Foundation of Wuxi city (KX-21-C45). Even so, this work does not involve any conflict of interest.

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  1. Jiangnan University, Wuxi, China

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

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  1. Yong Liu
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  2. Wenwen Ren
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  3. Qian Xu
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Correspondence to Yong Liu.

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Liu, Y., Ren, W., Xu, Q. et al. Decision analysis of supply chains considering corporate social responsibility and government subsidy under different channel power structures. Ann Oper Res 315, 1841–1869 (2022). https://doi.org/10.1007/s10479-021-04213-x

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