Research On Sustainable Supply Chain Decision-making Considering Corporate Social Responsibility And Government Subsidies

With the deepening of globalization and integration of the world economy,enterprises have formed a pattern of mutual coordination and common development.The core competitiveness of the enterprises depends more on supply chain.And the competition of enterprises has been upgraded to the competition of supply chain.Supply chain management is an important tool for enterprises to acquire core competitiveness and maintain sustainable development in the 21 st century.In the meantime,the academic and business fields pay more attention to corporate social responsibility.The research of corporate social responsibility is no longer limited to a single enterprise and it has gradually extended to the whole supply chain.But many companies do not have the consciousness of corporate social responsibility and ignore the coordination and cooperation between supply chain members.They only pay attention to their own survival and development.Especially with the deterioration of the global ecological environment,the exhaustion of natural resources and the increasing diversification of interest subjects,various social problems occur frequently and seriously impact the sustainable development of supply chain.The essence of these social problems lies in the lack of corporate social responsibility of relevant enterprises.Corporate social responsibility includes both environmental responsibility and social responsibility.While pursuing economic benefits,enterprises should also actively undertake corresponding corporate social responsibility.Therefore,the research on competitive decision-making of supply chain from the perspective of corporate social responsibility has become one of the key issues of global concern.The active implementation of social responsibility behavior by enterprises will not only help increase the market share of enterprises,improve the health of employees and beautify the working environment,but also help the government protect the environment,reduce pollution and improve social welfare,so as to realize the organic unity of corporate profits and government benefits.Governments are also paying more and more attention to corporate social responsibility.But,enterprises will also encounter many obstacles when fulfilling their social responsibilities.At the same time,the fulfillment of corporate social responsibility will inevitably increase the capital cost for them to undertake social responsibility.These will result in the lack of motivation of supply chain members to fulfill corporate social responsibility.Therefore,it is an urgent problem for the government to study how to encourage enterprises to assume more corporate social responsibilities and explore the fundamental driving force for enterprises to fulfill social responsibilities,so as to promote the sustainable development of supply chain and increase social welfare.Government departments at all levels are also actively encouraging enterprises to assume more social responsibilities.Actually,government subsidies are the most common and effective incentive means.Therefore,the research on sustainable supply chain decision-making considering corporate social responsibility and government subsidies,which is analyzing the impact of government subsidies on the incentive effect of supply chain members to fulfill corporate social responsibility and the optimal strategy of supply chain members,is the hotspot of supply chain management and sustainability theory.The research has important theoretical significance and practical value.The main research work is as follows:(1)Consumer preferences and corporate social responsibility are incorporated into the research of supply chain decision-making.While purchasing products,many consumers are focused on the performance of corporate social responsibility in enterprises.They prefer the products made by the companies that take on corporate social responsibility positively.So a two-level supply chain composed of a manufacturer and a retailer is built,in which the manufacturer is the leader in the Stackelberg game.Corporate social responsibility and consumer preferences are considered in sustainable supply chain decisions.The manufacturer and the retailer fulfill corporate social responsibility at the same time.The optimal strategies in the centralized and decentralized scenarios are compared to explore the incentive effect of consumer preference on corporate social responsibility.The influence of decision-making mode on CSR level of supply chain members is researched.It is showed that the optimal strategy of supply chain under centralized decision-making is superior to decentralized decision-making.The preference of consumers based on corporate social responsibility has an incentive effect on corporate social responsibility.The CSR effort cost coefficient of every supply chain member has obvious influence on their CSR level and the product price.(2)Considering channel power structure and government subsidies,a two-level supply chain composed of a single manufacturer and a single retailer under three different channel power structures is constructed,in which the manufacturer and the retailer perform corporate social responsibility at the same time.The government only subsidises the manufacturer.The paper compares the difference of optimal decision of supply chain with government subsidy and non-government subsidy under different power structures,and the incentive effect of government subsidies on CSR of supply chain members.The results show that government subsidies to the manufacturer in three different channel power structures can motivate supply chain members to implement more CSR behaviors.However,when the manufacturer is dominant in the channel structure,the supply chain members are willing to accept the subsidy strategy.While in other power structures,the supply chain members are not always willing to accept the subsidy strategy.When the manufacturer or the retailer dominate the supply chain,with the increase of government subsidies coefficient,the CSR performance level of supply chain members,the wholesale price and the retail price,as well as the optimal profit of supply chain members will increase.But when supply chain members have equal rights,the manufacturer's profit will increase first and then decrease.(3)The supply chain decision-making considering corporate social responsibility and government subsidies under different subsidy strategies is studied.Assuming that the government adopts three different subsidy strategies(subsidizing the manufacturer,subsidizing the retailer,and simultaneously subsidizing the manufacturer and the retailer),the paper analyzes whether government subsidies can motivate enterprises to fulfill more social responsibilities under different subsidy strategies,and the impact on supply chain decision-making.The results show that three subsidy strategies can stimulate the manufacturer to perform more CSR,and the manufacturer is willing to accept the three subsidy strategies.But the retailer does not necessarily undertake more CSR and it is not necessarily willing to accept the subsidy strategy.When the government subsidies coefficient increases,both the manufacturer's optimal wholesale price and the manufacturer's optimal CSR level will increase,while the retailer's optimal retail price and the retailer's optimal CSR level will also increase.(4)Supply chain decisions under the competition between supply chains considering corporate social responsibility and government subsidies are studied.Two competing supply chains are build.Each supply chain is composed of a single manufacturer and a single exclusive retailer,in which the manufacturer is the leader.The products of two supply chains have a certain alternative.The manufacturer and the retailer of supply chain 1 are actively performing corporate social responsibility,while the members of supply chain 2 are not.It is studied whether government subsidies can motivate enterprises to fulfill more social responsibilities in the supply chain-to-chain competition.The paper analyzes the impact of product substitutability on the level of CSR.And the sensitivity of supply chain pricing and optimal profit to government subsidies and product substitutability is also discussed.The results show that government subsidies can motivate supply chain members with social responsibility consciousness to fulfill more CSR under the two decision-making modes.When every supply chain is a Stackelberg game led by the manufacturer,the wholesale price and the optimal profit of members of supply chain 1 will increase with the increase of government subsidy coefficient.While the wholesale price and the optimal profit of members of supply chain 2 will decrease with the increase of government subsidy coefficient.When the substitutability of products is small,supply chain-to-chain competition is weak.At this point,the profit of supply chain 1 in pure centralized decision model is higher than that in pure decentralized decision model.With the increase of cross-price sensitivity coefficient,the profit of supply chain 1 in pure decentralized decision model is higher than that in pure centralized decision model.In this paper,corporate social responsibility and government subsidies are incorporated into the study of sustainable supply chain decision-making.At the same time,the influence of consumer preference,different channel power structure,government subsidies,different subsidy subjects on the incentive of enterprises to fulfill social responsibility and the optimal decision of supply chain is considered.Finally,the research is extended to supply chain-to-chain competition.The research not only enriches and develops the theory of supply chain operation and sustainable management,but also has certain reference value for enterprises to implement corporate social responsibility and government subsidies strategy.