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

Multinational companies’ coordination mechanism for extending corporate social responsibility to Chinese suppliers
Multinational companies’ coordination mechanism for extending corporate social responsibility to Chinese suppliers
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.
0959-6526
Tian, Gang
55666741-fb82-4865-8410-633915027edd
Liu, Jingjin
1bc51b1c-21ff-43e7-8824-6fb077a8e873
Gong, Yu
86c8d37a-744d-46ab-8b43-18447ccaf39c
Wang, Qunwei
9d3a35e8-a25b-4ad0-9697-2cfaf200021e
Sun, Huaping
8c9ad38e-0fe1-4eb3-a754-c1765414c88f
Chen, Haojia
a81f4387-322e-4c90-b384-545dad631cde
Tian, Gang
55666741-fb82-4865-8410-633915027edd
Liu, Jingjin
1bc51b1c-21ff-43e7-8824-6fb077a8e873
Gong, Yu
86c8d37a-744d-46ab-8b43-18447ccaf39c
Wang, Qunwei
9d3a35e8-a25b-4ad0-9697-2cfaf200021e
Sun, Huaping
8c9ad38e-0fe1-4eb3-a754-c1765414c88f
Chen, Haojia
a81f4387-322e-4c90-b384-545dad631cde

Tian, Gang, Liu, Jingjin, Gong, Yu, Wang, Qunwei, Sun, Huaping and Chen, Haojia (2020) Multinational companies’ coordination mechanism for extending corporate social responsibility to Chinese suppliers. Journal of Cleaner Production, 267, [121896]. (doi:10.1016/j.jclepro.2020.121896).

Record type: Article

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.

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More information

Accepted/In Press date: 24 April 2020
e-pub ahead of print date: 12 May 2020
Published date: 10 September 2020

Identifiers

Local EPrints ID: 440805
URI: http://eprints.soton.ac.uk/id/eprint/440805
ISSN: 0959-6526
PURE UUID: ea8649bc-c3da-4279-99ec-af10c12617fe
ORCID for Yu Gong: ORCID iD orcid.org/0000-0002-5411-376X

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Date deposited: 19 May 2020 16:30
Last modified: 23 Jul 2022 04:53

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Contributors

Author: Gang Tian
Author: Jingjin Liu
Author: Yu Gong ORCID iD
Author: Qunwei Wang
Author: Huaping Sun
Author: Haojia Chen

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