Abstract
Corporate social responsibility (CSR) has a significant impact on the operation of enterprises. This study analyzes the production and coordination decisions of closed-loop supply chain (CLSC) by establishing two assumptions of endogenous and exogenous CSR. The results reveal that, for ordinary consumers, CSR is quantified as the parameter of consumer surplus, which has an impact on the patent licensing fee, revenue-sharing ratio, and so on, and which not only increases the sales quantity in CLSC but also creates more value for the manufacturer and the retailer. Considering endogenous CSR, the study found that the manufacturer’s CSR level and the manufacturer’s and the retailer’s profits both increase with the proportion of CSR-sensitive consumers. In the endogenous model, the manufacturer sets a higher wholesale price and lower patent licensing fee than in the exogenous model. Perfect coordination in the two models can be achieved by setting a revenue-sharing ratio related to wholesale price and patent licensing fee. In practice, improving the social responsibility consciousness of consumers and raising enterprises’ CSR level can achieve a win-win situation for revenues and social welfare.
Highlights
In the new era, increasing attention has been paid to environmental sustainability, driven by laws, regulations, environmental pressure, and social responsibility, which has become an important indicator of supply chain management success [1]
In RS contracts, the manufacturer provides a wholesale price and requires a portion of the revenue from the retailer. e revenue-sharing parameter set in RS contracts is λ ∈ (0, 1), and the manufacturer receives (1 − λ) times a portion of the revenue
corporate social responsibility (CSR) level can effectively improve the revenues of the manufacturer and the retailer, and patent licensing fee has an important regulatory effect on regulating the manufacturer’s revenue and encouraging the retailer to remanufacture
Summary
In the new era, increasing attention has been paid to environmental sustainability, driven by laws, regulations, environmental pressure, and social responsibility, which has become an important indicator of supply chain management success [1]. Complexity e main contributions of this study are as follows: (1) it brings CSR behaviors into the classic framework of CLSC management, examines its impact on the operation of CLSC, and clarifies the value of CSR; (2) it considers the issue of patent licensing in CLSC and reveals the regulatory role of patent licensing; and (3) it sets a revenue-sharing ratio related to price and patent licensing fee in the two models to coordinate the profit of the manufacturer and the retailer. Huang and Wang [12] examined the CLSC model for product recycling and hybrid remanufacturing under patent licensing and discussed the impact of remanufacturing capabilities on supply chain members and environmental sustainability. E current study focuses on the production decision and coordination mechanism of CLSC with patent licensing from the perspective of CSR. Our study differs from the existing literature in that enterprises’ CSR and the social responsibility awareness of consumers are involved in the model. e related theoretical and numerical analysis reveal how the endogenous and exogenous CSR influence production decisions and coordination
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
