Multiperiod effects of corporate social responsibility on supply chain networks, transaction costs, emissions, and risk

This paper develops a framework for the analysis of the optimal levels of corporate social responsibility (CSR) activities in a multiperiod supply chain network consisting of manufacturers, retailers, and consumers. Manufacturers and retailers determine their production quantities, transaction quantities, and the amount of social responsibility activities they want to pursue that maximize net return, minimize emission, and minimize risk over the planning horizon. We investigate the interplay of the heterogeneous decision-makers and compute the equilibrium pattern of product outputs, transactions, prices, and levels of social responsibility activities. The paper provides insights concerning the optimal allocation of resources to CSR activities when considering a multiperiod time frame. (c) 2008 Elsevier B.V. All rights reserved.