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Decision Models and Governance Mechanisms Considering Corporate Social Irresponsibility in Supply Chains
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Author(s): Bin Liu (Shanghai Maritime University, China), Pepei Ying (Shanghai Maritime University, China)and Lin Peng (Shanghai Maritime University, China)
Copyright: 2018
Pages: 18
Source title:
Green Production Strategies for Sustainability
Source Author(s)/Editor(s): Sang-Bing (Jason) Tsai (University of Electronic Science and Technology of China (Zhongshan Institute), China & Civil Aviation University of China, China), Bin Liu (Shanghai Maritime University, China)and Yongian Li (Nankai University, China)
DOI: 10.4018/978-1-5225-3537-9.ch008
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Abstract
This chapter describes corporate social irresponsibility (CSI) with a global variable, and supposes it has a negative influence on market demand to set up a decision model in supply chain for the joint effect of price and CSI on demand. Analyzing manufacturers' decisions on CSI under two supply chain structure settings including single-channel supply chain and competitive supply chain, the authors hope to design governance mechanisms to restrain the CSI performance of the manufacturers so as to provide a theoretic reference to the better fulfillment of sustainable development and social responsibility. Moreover, this chapter makes a simple extension on the asymmetry initial base demand, and the result is quite different from the symmetry initial base demand. It is found that an asymmetric CSI strategy can achieve equilibrium. A suggestion in this chapter is to intensify the competition in supply chain by supporting smaller enterprises and preventing complete monopoly.
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