Abstract
Recently, many firms in various industries implement corporate social responsibility (CSR) in different ways. Based on considering a CSR-concerned retailer and an altruistic fairness concern manufacturer, this paper investigates pricing decisions as well as carbon emission policies in a socially responsible supply chain. In this paper, two different modes (the centralized model and decentralized model) are, respectively, conducted and investigated for equilibria. Analytical results reveal that socially responsible retailer (manufacturer) cares more about CSR (altruistic fairness) concern and will increase his counterpart’s pure profit as well as the pure channel profit, ending up with decreasing his own pure profit. The cooperative agents in decentralized scenario can coordinate the channel and achieve the maximum pure channel profit as much as that in a pure profit-maximizing centralized model. Moreover, this paper proposes a novel two-stage carbon cap-and-trade policy for the government and examines how it is affected by the CSR concern level and the altruistic fairness in such a socially responsible supply chain.
Highlights
Environmental polluting emerging as a worldwide consensus has caught attention from the practitioners and academia
It has been reported that the total amount of carbon emission trading has exceeded 50 billion dollars in 2010 [8]. erefore, how to curb carbon emissions becomes a crucial issue for a firm partly due to attain economic profitability and partly due to concern about environmental effects [9]
The current work investigates how the socially responsible behavior (CSR concerned by the retailer and the altruistic fairness concern by the manufacturer) affects the operational decisions and supply chain performance under the carbon capand-trade regulation. is paper finds that socially responsible retailer cares more about corporate social responsibility (CSR) and will increase his counterpart’s pure profit as well as the pure channel profit, ending up with decreasing his own pure profit
Summary
Environmental polluting emerging as a worldwide consensus has caught attention from the practitioners and academia. The current work investigates how the socially responsible behavior (CSR concerned by the retailer and the altruistic fairness concern by the manufacturer) affects the operational decisions and supply chain performance under the carbon capand-trade regulation. 2. Literature Review e related researches regarding this paper can be categorized into three streams: carbon cap-and-trade regulation, corporate social responsibility, and distributional fairness concern. Constructing a socially responsible supply chain under carbon cap-and-trade mechanism, the aim of this paper is to analyze the pricing decisions and carbon policies in the context of carbon regulation. Is paper investigates the scenario in which the carbon cap-and-trade mechanism is introduced to a socially responsible supply chain and explores the optimal carbon policy for the government.
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