Most studies addressing the problem of corporate social responsibility (CSR) stimulation of a supply chain assume that supplier dominates the supply chain. However, the tendency appears that the retailing market is becoming more and more concentrated so that the dominance of retailers on the supply chain gets more and more prominent for some industries. Furthermore, suppliers in the supply chains dominated by different parties may have different motivation to engage CSR and prefer different contracts. Therefore, how to motivate supplier to engage inmore social responsibilities under different power structure of supply chain is studied in this paper. A supply chain consisting of a supplier and a retailer is constructed. Assuming that only the supplier fulfills CSR, the market power structure (retailer-led and supplier-led) is integrated with the supply chain social responsibility incentive contract (revenue-sharing incentive and cost-sharing incentive) choice decision, aiming to maximize the social responsibility under the premise that profits increased for both parties of the supply chain after the contract is introduced. The following findings are contributed. Relative to the supplier-dominated mode, the supplier would undertake more social responsibility in the retailer-dominatedmode. With the introduction of revenue-sharing and cost-sharing contract, it is found that the cost-sharing contract is more effective even though both contracts are feasible to stimulate suppers' social responsibilities in the supplier-led model. However, in the retailer-dominated mode, the revenue-sharing contract can motivate the suppliers to undertake more corporate social responsibility, but a fails to increase the profit of retailer.The contract can't thereby be reached.The cost-sharing contract only has a stimulating effect when the sharing rate is big enough, which is inconsistent with the intuition. All the findings are demonstrated by the simulation results. It is revealed, on the one hand, sharing contract can motivate suppliers to fulfill CSR, and on the other hand, it provides implications to motivate suppliers'CSR initiatives for the retailer-led supply chain.
YANG Yan, CHENG Yan-pei, Chen Shou
. Stimulatingcorporate Social Responsibility in Supply Chain in Different Dominated Modes[J]. Chinese Journal of Management Science, 2019
, 27(3)
: 144
-156
.
DOI: 10.16381/j.cnki.issn1003-207x.2019.03.015
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