The Coordination Of Retailer Dominated Supply Chain Congsidering Corporate Social Responsibility

Now, it is a common phenomenon that the suppliers in a retailer-dominated supply chain are reluctant to undertake corporate social responsibility. The lack of corporate social responsibility took by the suppliers will not only lead to the deterioration of the cooperative relationship between supply chain members, but also reduce the competitiveness of the whole supply chain, more seriously it will harm the social sustainable development. Base on the above status, the paper studies how to improve the level of corporate social responsibility taken by suppliers and achieve the supply chain’s coordination in a two-stage supply chain which consists of two competitive suppliers and a retailer with the game theory and supply chain coordination theory.Firstly, the paper studies the two-stage supply chain affected by corporate social responsibility. This chapter analyzes the members’ optimal decisions when the retailer puts forward a revenue-sharing contract using the game theory. By comparison with the members’ optimal decisions and profit when the retailer doesn’t put forward the revenue-sharing contract, we find that the contract can effectively improve the level of the corporate social responsibility and achieve Pareto optimization of the supply chain, but the corporate social responsibility will decrease when the corporate social responsibility related(CSR-related) cost and CSR-related product completion rise up.In the case of considering the level corporate social responsibility the paper studies the suppliers’ and the retailer’s optimal decisions under centralized and decentralized situation when the market demand is affected by price. The chapter puts forward a revenue sharing contract considering corporate social responsibility in order to improve the members’ profit and the corporate social responsibility undertook by the suppliers. The results for this chapter show that the contract coordinates the supply chain and product competition in a certain range will be harm to the suppliers.At last, according to the analysis of the first two chapters, the paper gives some advice and suggestions on how to improve the level of corporate social responsibility undertook by the suppliers and how to achieve higher coordination of the retailer dominated supply chain.