Study on the effect of income perception on cleaner-production fraud.

Abstract

We investigated a single-cycle product supply chain in a game model, where a supplier is the leader. By innovatively introducing cleaner production fraudulent income perception factor into a game model, we studied the mechanism of the effect of enterprise social responsibility and environmental awareness on cleaner production fraud. The results showed that the income of retailers and suppliers changes under different perceptions of fraudulent income. That is, the value of cleaner production fraudulent income perception factor will affect the enterprise's choice of differentiation strategy. When the enterprise's sense of social responsibility is weak, it is more likely to choose cleaner production fraud. Conversely, under the constraints of high social responsibility, it more likely avoids production fraud. Regarding government supervision, the income of suppliers and retailers changes under different government penalties. Furthermore, a reasonable punishment for cleaner production fraud can reduce such violations. However, after the punishment reaches a level, the efficiency of supervision begins to decline. In views of that, improving enterprise social responsibility through institutional reform is a more effective way to reduce cleaner production fraud. To contribute to a healthy competitive market environment, government supervision should establish a feedback mechanism, and make timely adjustments.