Retailer’s optimal CSR investment in closed-loop supply chains: The impacts of supply chain structure and channel power structure

Benrong Zheng, Liang Jin*, Guoxuan Huang, Jie Chu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

This paper studies the retailer’s optimal corporate social responsibility (CSR) investment decisions in manufacturer-collecting closed-loop supply chains (CLSCs). We establish a centralized and two decentralized models with and without considering the retailer’s CSR investment. The impacts of the supply chain structure and channel power structure on the retailer’s CSR investment decisions are analyzed. We find that (i) the retailer increases CSR investment as the remanufacturing cost savings increase or the collection cost reduces; (ii) the retailer is more willing to make a CSR investment in the centralized model than in the decentralized models; (iii) the CSR effort level in the manufacturer-led model is higher than that in the retailer-led model; and (iv) when the unit cost of CSR investment is moderate, retailer’s CSR investment benefits the retailer while harming the manufacturer; however, CSR investment always leads to a “win–win” situation when the retailer is the channel leader. Finally, we carry out numerical studies to investigate the effects of model parameters on supply chain equilibrium.

Original languageEnglish
Pages (from-to)301-327
Number of pages27
Journal4OR
Volume21
Issue number2
Early online date7 Jun 2022
DOIs
Publication statusE-pub ahead of print - 7 Jun 2022

Keywords

  • CSR investment
  • Channel power structure
  • Closed-loop supply chain
  • Manufacturer-collecting
  • Supply chain structure

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