Research On Supply Chain’s Coordination Mechanism Based On Corporate Social Responsibility

Nowadays, the problems about product quality and safety or resource shortage have become more and more serious, so that the corporate social responsibility(CSR) has got more attention from the government, enterprises and also the public. And the research about sustainable supply chain management based on corporate social responsibility is becoming a hot area. An effective contract in sustainable supply chain can make the members in the chain share the profit and risk, and also inspire each of them to carry out the corporate social responsibility. Meanwhile, by the contract, coordinatio n and cooperation between enterprises can be strengthen, and also the same to supervision. In this way, it can improve the economic performance, social performance and environmental performance for the whole supply chain, and build the sustainable supply chain.Based on the theory about CSR and sustainable supply chain management at home and abroad, this research has discuss the sustainable supply chain about the development status and existing barriers. And this paper make a discussion about how the member company’ CSR influence the whole supply chain and other members. Furthermore the CSR level has introduced into the profit function to discuss how the profit will be affected. Moreover, based on the profit sharing contract model, this research discuss the coordination problem of sustainable supply chain and make a comparison about the best CSR level and profit between decentralized decision and centralized decision, and the conclusion is obtained that centralized decision maximizes the benefits for supply chain. In order to guarantee the validity of the contract and protect the members’ profit, in this paper the profit sharing contract has been amended and the income and the sharing cost in CSR cost will be share in the supply chain. Finally, the coordinatio n and income-cost sharing contract model have been discussed when the supply chain has competitive members, so as to ensure the effectiveness of the coordination model.