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Collaboration and sharing mechanisms in improving corporate social responsibility

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  • Cheng-Han Wu

    () (National Yunlin University of Science and Technology)

Abstract

Abstract This paper investigates the effects of the collaboration between an upstream and a downstream firm regarding their decisions of prices and levels of corporate social responsibility (CSR) efforts. The firms collaborate with each other by sharing their costs or benefits to improve their profitabilities and CSR performances. Three collaborative models are developed for considering that collaboration may be undertaken by either or both firms, and each model has both profit- and cost-sharing mechanisms. We derive and characterize the consumer valuation and the firms’ decisions at equilibrium with respect to the changes in the sharing scheme, and further identify the impacts of each sharing mechanism. Moreover, a Nash bargaining game is developed for examining the choices of sharing scheme under the negotiation between the firms. Finally, we provide economic and managerial insights for socially concerned companies.

Suggested Citation

  • Cheng-Han Wu, 2016. "Collaboration and sharing mechanisms in improving corporate social responsibility," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 24(3), pages 681-707, September.
  • Handle: RePEc:spr:cejnor:v:24:y:2016:i:3:d:10.1007_s10100-014-0377-0
    DOI: 10.1007/s10100-014-0377-0
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