Abstract
More and more companies are beginning to realize that incorporating corporate social responsibility (CSR) and sustainable development into supply chain strategies and operations can bring them more competitive advantages. In the case that the manufacturer or retailer performs CSR through profit donation, the pricing decision-making problem of closed-loop supply chain (CLSC) with dominant retailer under different CSR investment modes is studied. The decision-making models of CLSC under the manufacturer’s and retailer’s CSR investment mode are constructed respectively. The conditions for enterprises to fulfil CSR through profit donation and the influence of different CSR investment modes on the pricing of new products and recycling of waste products are discussed. The research shows that no matter what kind of CSR investment mode, only when the consumers are more sensitive to the CSR investment of enterprises, the manufacturer and retailer will fulfil the CSR through profit donation. The CSR investment mode of the manufacturer is more beneficial to consumers, environment, CLSC members and whole system. No matter whether the dominant retailer carries out CSR investment or not, she always obtains more channel profits than the manufacturer.
Highlights
With the continuous development of the global economy and technology, the replacement of household electronic appliances and other products is getting faster and faster, and a large number of waste products are produced, causing resource shortages and environmental pollution problems to become increasingly serious
closed-loop supply chain (CLSC), the premise for companies to perform corporate social responsibility (CSR) through profit donations is that consumers are more sensitive to the CSR investment level of corporate compared to the product prices
Based on a closed-loop supply chain composed of a manufacturer and a dominant retailer, this paper discusses the preconditions for the manufacturer and retailer to fulfil CSR through profit donation and the influence of different CSR investment modes on the pricing decision of CLSC
Summary
With the continuous development of the global economy and technology, the replacement of household electronic appliances and other products is getting faster and faster, and a large number of waste products are produced, causing resource shortages and environmental pollution problems to become increasingly serious. Related research shows that CSR helps to improve the economic benefits and brand reputation of enterprises, and helps to increase consumers’ willingness to pay for related products [3,4] In this context, more and more companies have begun to incorporate CSR practices into their own development strategies to effectively achieve the coordinated development of economy, society and the environment. More and more companies have begun to incorporate CSR practices into their own development strategies to effectively achieve the coordinated development of economy, society and the environment Renowned companies such as Alibaba, Huawei, and Ford release CSR report every year to show their efforts and contributions to improving social and environmental benefits this year. This paper will construct the CLSC decision-making model in two situations where the manufacturer or retailer makes CSR investment (profit donations) and study the conditions for different enterprises that making profit donation in the CLSC and the impact of different CSR investment modes on the CLSC operation decision
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