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Multiperiod effects of corporate social responsibility on supply chain networks, transaction costs, emissions, and risk

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  • Cruz, Jose M.
  • Wakolbinger, Tina
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    Abstract

    This paper develops a framework for the analysis of the optimal levels of corporate social responsibility (CSR) activities in a multiperiod supply chain network consisting of manufacturers, retailers, and consumers. Manufacturers and retailers determine their production quantities, transaction quantities, and the amount of social responsibility activities they want to pursue that maximize net return, minimize emission, and minimize risk over the planning horizon. We investigate the interplay of the heterogeneous decision-makers and compute the equilibrium pattern of product outputs, transactions, prices, and levels of social responsibility activities. The paper provides insights concerning the optimal allocation of resources to CSR activities when considering a multiperiod time frame.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 116 (2008)
    Issue (Month): 1 (November)
    Pages: 61-74

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    Handle: RePEc:eee:proeco:v:116:y:2008:i:1:p:61-74

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Supply chains Environment Corporate social responsibility Risk management Network equilibrium Pricing Variational inequalities Multicriteria decision-making;

    References

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    1. Nagurney, Anna & Cruz, Jose & Dong, June & Zhang, Ding, 2005. "Supply chain networks, electronic commerce, and supply side and demand side risk," European Journal of Operational Research, Elsevier, vol. 164(1), pages 120-142, July.
    2. Cruz, Jose M., 2008. "Dynamics of supply chain networks with corporate social responsibility through integrated environmental decision-making," European Journal of Operational Research, Elsevier, vol. 184(3), pages 1005-1031, February.
    3. Kolk, Ans & van Tulder, Rob, 2002. "The Effectiveness of Self-regulation:: Corporate Codes of Conduct and Child Labour," European Management Journal, Elsevier, vol. 20(3), pages 260-271, June.
    4. K E Hill, 1997. "Supply-chain dynamics, environmental issues, and manufacturing firms," Environment and Planning A, Pion Ltd, London, vol. 29(7), pages 1257-1274, July.
    5. Parker,Christine, 2002. "The Open Corporation," Cambridge Books, Cambridge University Press, number 9780521818902.
    6. Dong, June & Nagurney, Anna, 2001. "Bicriteria Decision Making and Financial Equilibrium: A Variational Inequality Perspective," Computational Economics, Society for Computational Economics, vol. 17(1), pages 29-42, February.
    7. Falck, Oliver & Heblich, Stephan, 2007. "Corporate social responsibility: Doing well by doing good," Munich Reprints in Economics 20502, University of Munich, Department of Economics.
    8. Bloemhof-Ruwaard, Jacqueline M. & van Beek, Paul & Hordijk, Leen & Van Wassenhove, Luk N., 1995. "Interactions between operational research and environmental management," European Journal of Operational Research, Elsevier, vol. 85(2), pages 229-243, September.
    9. Zeyuan Qiu & Tony Prato & Francis McCamley, 2001. "Evaluating Environmental Risks Using Safety-First Constraints," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 402-413.
    10. Castka, Pavel & Balzarova, Michaela A., 2008. "ISO 26000 and supply chains--On the diffusion of the social responsibility standard," International Journal of Production Economics, Elsevier, vol. 111(2), pages 274-286, February.
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    Citations

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    Cited by:
    1. Hsueh, Che-Fu, 2014. "Improving corporate social responsibility in a supply chain through a new revenue sharing contract," International Journal of Production Economics, Elsevier, vol. 151(C), pages 214-222.
    2. Suzanne Young & Vijaya Thyil, 2014. "Corporate Social Responsibility and Corporate Governance: Role of Context in International Settings," Journal of Business Ethics, Springer, vol. 122(1), pages 1-24, June.
    3. Constantin Blome & Antony Paulraj, 2013. "Ethical Climate and Purchasing Social Responsibility: A Benevolence Focus," Journal of Business Ethics, Springer, vol. 116(3), pages 567-585, September.
    4. Lu, Rainy X.A. & Lee, Peter K.C. & Cheng, T.C.E., 2012. "Socially responsible supplier development: Construct development and measurement validation," International Journal of Production Economics, Elsevier, vol. 140(1), pages 160-167.
    5. Wirl, Franz & Feichtinger, Gustav & Kort, Peter M., 2013. "Individual firm and market dynamics of CSR activities," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 169-182.
    6. Faccio, M. & Persona, A. & Sgarbossa, F. & Zanin, G., 2014. "Sustainable SC through the complete reprocessing of end-of-life products by manufacturers: A traditional versus social responsibility company perspective," European Journal of Operational Research, Elsevier, vol. 233(2), pages 359-373.
    7. Cruz, Jose M. & Liu, Zugang, 2011. "Modeling and analysis of the multiperiod effects of social relationship on supply chain networks," European Journal of Operational Research, Elsevier, vol. 214(1), pages 39-52, October.
    8. Klassen, Robert D. & Vereecke, Ann, 2012. "Social issues in supply chains: Capabilities link responsibility, risk (opportunity), and performance," International Journal of Production Economics, Elsevier, vol. 140(1), pages 103-115.
    9. Liu, Zugang & Cruz, Jose M., 2012. "Supply chain networks with corporate financial risks and trade credits under economic uncertainty," International Journal of Production Economics, Elsevier, vol. 137(1), pages 55-67.
    10. Gimenez, Cristina & Sierra, Vicenta & Rodon, Juan, 2012. "Sustainable operations: Their impact on the triple bottom line," International Journal of Production Economics, Elsevier, vol. 140(1), pages 149-159.
    11. Zugang Liu, 2013. "The co-evolution of integrated corporate financial networks and supply chain networks with insolvency risk," Computational Management Science, Springer, vol. 10(2), pages 253-275, June.
    12. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, vol. 130(1), pages 1-15, March.

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