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Using social work donation as a tool of corporate social responsibility in a closed-loop supply chain considering carbon emissions tax and demand uncertainty

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  • Nikunja Mohan Modak
  • Peter Kelle

Abstract

Companies are increasingly realizing the benefits of adopting Corporate Social Responsibility (CSR) and including it into their supply chain strategy and operations. We consider two CSR tools: social work donation (SWD) and recycling investment. We integrate the CSR investments into a closed loop supply chain where the stochastic demand depends on the sales price and social work donation. We consider four decisions jointly: donation amount, recycling investment, pricing, and order quantity. Mathematical models are proposed for expected profit maximization under a carbon emissions tax. A two-stage approach and a distribution-free approach are used if limited information is available on the random demand. Optimality conditions and sensitivity of the expected profit functions are analysed. The investment function reflects the joint effect of two different environmental/social investments allowing to study the interactions of the decisions together with the price decision. The study reveals that a company is motivated to use SWD as a tool of social responsibility if the demand has a higher SWD elasticity parameter than price sensitivity parameter. Our models demonstrate that the increment of customers' SWD elasticity has a positive impact on recycling that will also help to reduce the carbon emission tax.

Suggested Citation

  • Nikunja Mohan Modak & Peter Kelle, 2021. "Using social work donation as a tool of corporate social responsibility in a closed-loop supply chain considering carbon emissions tax and demand uncertainty," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 72(1), pages 61-77, January.
  • Handle: RePEc:taf:tjorxx:v:72:y:2021:i:1:p:61-77
    DOI: 10.1080/01605682.2019.1654413
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    Cited by:

    1. Chen, Jianxin & Hou, Rui & Xiao, Lu & Zhang, Tonghua & Zhou, Yongwu, 2023. "Dynamic corporate social responsibility adjustment strategies of a closed-loop supply chain with fairness concerns and supply chain financing," Chaos, Solitons & Fractals, Elsevier, vol. 168(C).
    2. Chokri Aloui & Khaïreddine Jebsi, 2022. "Does corporate social responsibility solve the chicken‐and‐egg problem for a two‐sided platform?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 3235-3256, October.
    3. Qiyao Liu & Xiaodong Zhu, 2024. "Incentive strategies for retired power battery closed-loop supply chain considering corporate social responsibility," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 19013-19050, July.
    4. Li, Qingying & Ma, Manqiong & Shi, Tianqin & Zhu, Chen, 2022. "Green investment in a sustainable supply chain: The role of blockchain and fairness," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    5. Suchitra Pattnaik & Mitali Madhusmita Nayak & Stefano Abbate & Piera Centobelli, 2021. "Recent Trends in Sustainable Inventory Models: A Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    6. Neda Dabaghian & Reza Tavakkoli-Moghaddam & Ata Allah Taleizadeh & Mohammad Sadegh Moshtagh, 2022. "Channel coordination and profit distribution in a three-echelon supply chain considering social responsibility and product returns," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3165-3197, March.
    7. Jianteng Xu & Qingguo Bai & Qian Luo, 2023. "Energy conservation strategy and coordination of a closed-loop supply chain with risk-averse members under carbon tax regulation," Operational Research, Springer, vol. 23(3), pages 1-39, September.
    8. Yang Lv & Xinhua Bi & Quanxi Li & Haowei Zhang, 2022. "Research on Closed-Loop Supply Chain Decision Making and Recycling Channel Selection under Carbon Allowance and Carbon Trading," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    9. Caiquan Duan & Fengmin Yao & Zhongqiu Li & Hui Yu, 2022. "Multi‐period closed‐loop supply chain network equilibrium considering CSR investment and sharing mechanism," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1579-1595, July.
    10. Chaonan Li & Tianyi Guo & Yan Chen, 2022. "Robust Emission Reduction Strategies under Cap-and-Trade and Demand Uncertainty," Sustainability, MDPI, vol. 14(20), pages 1-27, October.
    11. Ali Sabbaghnia & Jafar Heydari & Jafar Razmi, 2023. "Participative pricing and donation programs in a socially concerned supply chain," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 146-164, January.

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