Corporate social responsibility practice in resolving conflict of interests in a sustainable supply chain

Document Type : Research Paper


School of Industrial Engineering, College of Engineering, University of Tehran


Sustainability is more like a mandatory requirement in today’s business world. This study investigates coordination decisions in a dyadic supply chain with a socially responsible manufacturer. Social aspect of sustainability is getting more attention in addressing quantitative mathematical models. With use of participative pricing applications, an extension of this mechanism is applied to resolve the conflict of interests in a retailing channel. Cause-related marketing is proved to be an effective approach in satisfying both the economic and social concerns in a business practice. Our findings prove the applicability of the proposed model. Pricing decisions of the supply chain members are successfully coordinated via a revenue-sharing contract. Sensitivity analysis shows that the channel members gain more profit under the new pricing scheme while benefiting the society in terms of social responsibility.


Main Subjects

Ahmad, N., Ullah, Z., Arshad, M.Z., Kamran, H.w., Scholz, M., Han, H., (2021). Relationship between corporate social responsibility at the micro-level and environmental performance: The mediating role of employee pro-environmental behavior and the moderating role of gender. Sustainable Production and Consumption 27, 1138-1148.
Bart, N., Chernonog, T., Avinadav, T., (2021). Revenue-sharing contracts in supply chains: a comprehensive literature review. International Journal of Production Research 59 (21), 6633-6658.
Cai, Y.-J., Choi, T.-M., (2020). A United Nations’ Sustainable Development Goals perspective for sustainable textile and apparel supply chain management. Transportation Research Part E: Logistics and Transportation Review 141, 102010.
Dal Mas, F., Tucker, W., Massaro, M., Bagnoli, C., (2022). Corporate social responsibility in the retail business: A case study. Corporate Social Responsibility and Environmental Management 29 (1), 223-232.
Goering, G.E., (2012). Corporate social responsibility and marketing channel coordination. Research in Economics 66 (2), 142-148.
He, P., He, Y., Shi, C.V., Xu, H., Zhou, L., (2020). Cost-sharing contract design in a low-carbon service supply chain. Computers & Industrial Engineering 139, 106160.
Heydari, J., Aslani, A., Sabbaghnia, A., (2019). A collaborative scenario-based decision model for a disrupted dual-channel supply chain: Benchmarking against the centralized structure. Benchmarking: An International Journal 27 (3), 933-957.
Heydari, J., Heidarpoor, A., Sabbaghnia, A., (2020). Coordinated non–monetary sales promotions: Buy one get one free contract. Computers & Industrial Engineering, 106381.
Heydari, J., Mosanna, Z., (2018). Coordination of a sustainable supply chain contributing in a cause-related marketing campaign. Journal of Cleaner Production 200, 524-532.
Hosseini-Motlagh, S.-M., Govindan, K., Nematollahi, M., Jokar, A., (2019). An adjusEquatio bi-level wholesale price contract for coordinating a supply chain under scenario-based stochastic demand. International Journal of Production Economics 214, 175-195.
Hsueh, C.-F., (2014). Improving corporate social responsibility in a supply chain through a new revenue sharing contract. International Journal of Production Economics 151, 214-222.
Hsueh, C.-F., (2015). A bilevel programming model for corporate social responsibility collaboration in sustainable supply chain management. Transportation Research Part E: Logistics and Transportation Review 73, 84-95.
Hsueh, C.-F., Chang, M.-S., (2008). Equilibrium analysis and corporate social responsibility for supply chain integration. European Journal of Operational Research 190 (1), 116-129.
Jamali, M.-B., Rasti-Barzoki, M., (2018). A game theoretic approach for green and non-green product pricing in chain-to-chain competitive sustainable and regular dual-channel supply chains. Journal of cleaner production 170, 1029-1043.
Kim, J.-Y., Natter, M., Spann, M., (2009). Pay what you want: A new participative pricing mechanism. Journal of Marketing 73 (1), 44-58.
Kroes, J., Subramanian, R., Subramanyam, R., (2012). Operational compliance levers, environmental performance, and firm performance under cap and trade regulation. Manufacturing & Service Operations Management 14 (2), 186-201.
Lacour, J.-P., Lacour, H., (2019). Participative pricing and socially responsible consumption: The implementation of the “Name Your Own Price” model in a repurposing shop. Décisions Marketing 95 (3), 99-110.
Lee, J.-Y., Choi, S., (2021). Supply chain investment and contracting for carbon emissions reduction: A social planner's perspective. International Journal of Production Economics 231, 107873.
Liu, Y., Quan, B.-t., Li, J., Forrest, J., (2018a). A Supply Chain Coordination Mechanism with Cost Sharing of Corporate Social Responsibility. Sustainability 10 (4), 1227.
Liu, Y., Quan, B.-t., Xu, Q., Forrest, J.Y.-L., (2018b). Corporate social responsibility and decision analysis in a supply chain through government subsidy. Journal of Cleaner Production.
Liu, Y., Xiao, T., Fan, Z.P., Zhao, X., (2019). Pricing, environmental governance efficiency, and channel coordination in a socially responsible tourism supply chain. International Transactions in Operational Research 26 (3), 1025-1051.
Ma, P., Shang, J., Wang, H., (2017). Enhancing corporate social responsibility: Contract design under information asymmetry. Omega 67, 19-30.
Mahdiraji, H.A., Hafeez, K., Jafarnejad, A., Rezayar, A., (2020). An analysis of the impact of negative CSR ‘forced labour’ parameter on the profitability of supply chain contracts. Journal of Cleaner Production 271, 122274.
Marett, K., Pearson, R., Moore, R.S., (2012). Pay what you want: An exploratory study of social exchange and buyer-determined prices of iProducts. Communications of the Association for Information Systems 30 (1), 10.
Modak, N., Panda, S., Mishra, R., Sana, S., (2016). A three-layer supply chain coordination in socially responsible distribution system. Tékhne 14 (1), 75-87.
Modak, N.M., Kazemi, N., Cárdenas-Barrón, L.E., (2019). Investigating structure of a two-echelon closed-loop supply chain using social work donation as a Corporate Social Responsibility practice. International Journal of Production Economics 207, 19-33.
Moradi, A., Razmi, J., Babazadeh, R., Sabbaghnia, A., (2018). An integrated Principal Component Analysis and multi-objective mathematical programming approach to agile supply chain network design under uncertainty. Journal of Industrial & Management Optimization, 433-459.
Ni, D., Li, K.W., Tang, X., (2010). Social responsibility allocation in two-echelon supply chains: Insights from wholesale price contracts. European Journal of Operational Research 207 (3), 1269-1279.
Panda, S., (2014). Coordination of a socially responsible supply chain using revenue sharing contract. Transportation Research Part E: Logistics and Transportation Review 67, 92-104.
Panda, S., Modak, N.M., (2016). Exploring the effects of social responsibility on coordination and profit division in a supply chain. Journal of Cleaner Production 139, 25-40.
Panda, S., Modak, N.M., Cárdenas-Barrón, L.E., (2017). Coordinating a socially responsible closed-loop supply chain with product recycling. International Journal of Production Economics 188, 11-21.
Qian, X., Chan, F.T.S., Zhang, J., Yin, M., Zhang, Q., (2020). Channel coordination of a two-echelon sustainable supply chain with a fair-minded retailer under cap-and-trade regulation. Journal of Cleaner Production 244, 118715.
Raza, S.A., (2018). Supply chain coordination under a revenue-sharing contract with corporate social responsibility and partial demand information. International Journal of Production Economics 205, 1-14.
Riener, G., Traxler, C., (2012). Norms, moods, and free lunch: Longitudinal evidence on payments from a Pay-What-You-Want restaurant. The Journal of Socio-Economics 41 (4), 476-483.
Sabbaghnia, A., Taleizadeh, A.A., (2020). Quality, buyback and technology licensing considerations in a two-period manufacturing–remanufacturing system: a closed-loop and sustainable supply chain. International Journal of Systems Science: Operations & Logistics, 1-18.
Salmanzadeh-Meydani, N., Ghomi, S.M.T.F., Haghighi, S.S., Govindan, K., (2022). A multivariate quantitative approach for sustainability performance assessment: An upstream oil and gas company. Environment, Development and Sustainability.
Seyedhosseini, S.M., Hosseini-Motlagh, S.-M., Johari, M., Jazinaninejad, M., (2019). Social price-sensitivity of demand for competitive supply chain coordination. Computers & Industrial Engineering 135, 1103-1126.
Sheehy, B., (2015). Defining CSR: Problems and solutions. Journal of Business Ethics 131 (3), 625-648.
Tian, G., Liu, J., Gong, Y., Wang, Q., Sun, H., Chen, H., (2020). Multinational companies’ coordination mechanism for extending corporate social responsibility to Chinese suppliers. Journal of Cleaner Production 267, 121896.
Toktaş-Palut, P., (2021). An integrated contract for coordinating a three-stage green forward and reverse supply chain under fairness concerns. Journal of Cleaner Production 279, 123735.
Tseng, M.-L., Islam, M.S., Karia, N., Fauzi, F.A., Afrin, S., (2019). A literature review on green supply chain management: Trends and future challenges. Resources, Conservation and Recycling 141, 145-162.
Zhang, L., Wang, J., You, J., (2015). Consumer environmental awareness and channel coordination with two substitutable products. European Journal of Operational Research 241 (1), 63-73.
  • Receive Date: 27 January 2022
  • Revise Date: 23 February 2022
  • Accept Date: 02 March 2022
  • First Publish Date: 02 March 2022