Multinational companies’ coordination mechanism for extending corporate social responsibility to Chinese suppliers

Abstract

From the global supply chain perspective, this research explores how multinational companies (MNCs) can extend corporate social responsibility (CSR) practices to emerging countries such as China. A two-stage supply chain game model consisting of a Chinese supplier and a MNC is constructed. The study finds that an increase in the level of the Chinese supplier's CSR increases the product demand and the stakeholders' economic profits, but reduces the supplier's economic return; the product demand and the stakeholders' benefits increase along with the product green degree improvement, but the changes in the Chinese supplier's economic profits are jointly affected by the level of CSR and green production efficiency. The supply chain coordination can be achieved based on a revenue sharing contract. Finally, the effects of revenue sharing fraction and supplier's CRS level on product green degree, supplier's revenue and MNC's earnings are discussed by numerical simulation.

More information

Identifiers

ORCID for Yu Gong: orcid.org/0000-0002-5411-376X

Catalogue record

Export record

Altmetrics