Socially Responsible Supply Chain Partnership Based-On CSR Equity Model

Abstract

Although China has become the world’s second largest economy, a serious urgent issue of global consequences as well as the major obstacle in the process of China’s economic development is the lack of CSR. Through CSR initiatives, enterprises of all sizes, in cooperation with their stakeholders, can help to reconcile economic, social and environmental ambitions. Socially responsible supply chain partnership that integrates all efforts of CSR activities from socially re- sponsible enterprises to upstream partner-suppliers shall be surely needed within the uncertainly globalizing and net- worklizing knowledge economy era. This paper develops a five-step CSR Equity framework based-on socially respon- sible customer perspective for modeling and analysis of socially responsible supply chain partnership and shows rele- vant optimal coordination strategies to improving the social and environmental performance of all partners in the supply chain system. The findings suggest that the share rate of the total investment of partner-supplier’s CSR efforts shall be the critical contract clause to coordinate the socially responsible supply chain partnership to implement Pareto optimal policy with cost sharing contract. Moreover, the share rate has a strong positive relativity with the ratio of marginal revenues between supply chain members, whereas negative relativity with the partner-supplier’s leverage rate of CSR efforts.