Dynamic CSR investment decisions in the closed-loop supply chain of automotive lithium-ion batteries

Abstract

Corporate Social Responsibility (CSR) has been receiving a lot of attention by companies and academics because of the complex situation of the social environment and the influence of public opinion. Accordingly, we believe that investing in CSR in the closed-loop supply chain (CLSC) of automotive lithium-ion battery (LIB) has theoretical and practical significance for automotive LIBs recycling. In the case of second-life automotive LIB, we propose three dynamic models of CLSCs, (1) automotive LIB manufacturer invests in CSR, (2) automotive LIB retailer invests in CSR, and (3) both automotive LIB manufacturer and retailer invest in CSR, to explore the optimal recycling decisions. The result shows that CSR can increase the sales of new automotive LIBs and the recycling of used automotive LIBs. The number of CLSC participants who invest in CSR is positively correlated with corporate profits, and the higher the number of CLSC participants who invest in CSR, the higher the profits of each CLSC participant and the overall profits of the CLSC. Investing in CSR by automotive LIB retailer is better than by automotive LIB manufacturer.