Abstract
Although China has become the world’s second largest economy, a serious urgent issue of global consequences as well as the major obstacle in the process of China’s economic development is the lack of CSR. Through CSR initiatives, enterprises of all sizes, in cooperation with their stakeholders, can help to reconcile economic, social and environmental ambitions. Socially responsible supply chain partnership that integrates all efforts of CSR activities from socially responsible enterprises to upstream partner-suppliers shall be surely needed within the uncertainly globalizing and networklizing knowledge economy era. This paper develops a five-step CSR Equity framework based-on socially responsible customer perspective for modeling and analysis of socially responsible supply chain partnership and shows relevant optimal coordination strategies to improving the social and environmental performance of all partners in the supply chain system. The findings suggest that the share rate of the total investment of partner-supplier’s CSR efforts shall be the critical contract clause to coordinate the socially responsible supply chain partnership to implement Pareto optimal policy with cost sharing contract. Moreover, the share rate has a strong positive relativity with the ratio of marginal revenues between supply chain members, whereas negative relativity with the partner-supplier’s leverage rate of CSR efforts.
Highlights
This paper develops a five-step corporate social responsibilities (CSR) Equity framework based-on socially responsible customer perspective for modeling and analysis of socially responsible supply chain partnership and shows relevant optimal coordination strategies to improving the social and environmental performance of all partners in the supply chain system
The findings suggest that the share rate of the total investment of partner-supplier’s CSR efforts shall be the critical contract clause to coordinate the socially responsible supply chain partnership to implement Pareto optimal policy with cost sharing contract
On the basis of the fore research literatures, this paper proposes a five-step CSR Equity framework based-on socially responsible customer perspective in Figure 1 for modeling and analysis of socially responsible supply chain partnership, which maps out component analysis and management of CSR equity
Summary
According to the latest research released by Chinese Academy of Social Sciences, the 2011 annual report on CSR of China, estimating the CSR development level of top 100 state-owned enterprises, as well as top 100 private enterprises and top 100 foreign-invested enterprises on their market responsibility, social responsibility, and environmental responsibility credentials, shows the survey findings in 2011 don’t seem to have improved since the first report in 2009. China has become the world’s second largest economy with Japan surrendering its 42-year-old ranking after its economy shrank in the final months of 2010, one serious urgent issue of global consequences as well as a major obstacle in the process of China’s economic development is the lack of CSR involving in customer responsibility, transaction process responsibility, employee responsibility, suppliers responsibility, community responsibility, environment responsibility, and so forth. It is urgent time for enterprises to be aware of global responsibility and harmonious social consciousness to sustainable development, and voluntarily integrate the CSR into their business strategy to pursue a natural fit between economic values and environmental and social benefits
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