Collaboration for a Socially Responsible Supply Chain based on the CSR Equity Model

Abstract

Despite having the world's second-largest economy, China's economic progress is hampered by a lack of corporate social responsibility (CSR). This is a critical issue with global implications. Organizations of various sizes can promote the alignment of economic, social, and environmental goals through stakeholder engagement and the implementation of corporate social responsibility strategies. Uncertainty about the future of the networked and globalizing information economy will undoubtedly necessitate socially responsible supply chain partnerships that include the entire CSR initiative of upstream partner-suppliers and socially responsible firms. The goal of this paper is to describe the creation of a modeling and analysis framework for socially responsible supply chain partnerships, which consists of five steps: CSR Equity. The framework depicts relevant optimal coordination strategies to improve the social and environmental performance of all supply chain system stakeholders from the perspective of socially responsible customers. According to the findings, the share rate of the total investment made by the partner-supplier in CSR initiatives is a critical contract provision for coordinating socially conscious supply chain partnerships and implementing the Pareto optimal policy with cost sharing contracts. Furthermore, a significant positive correlation exists between the share rate and the ratio of marginal revenues among supply chain participants, while a negative correlation exists between the share rate and the leverage rate of corporate social responsibility initiatives by the partner-supplier.