Contract Selection Of Corporate Social Responsibility Cost Allocation For Supply Chain Under Different Power Structures

In recent years,due to the lack of social responsibility,there have been frequently incidents of product safety problems.More and more companies have begun to pay attention to corporate social responsibilities in supply chain.Some companies began to monitor the fulfillment of corporate social responsibility in the supply chain by auditing.However,it is difficult to achieve the expected results only by auditing.The retailer must reach a certain benefit-sharing mechanism with the supplier in advance to motivate the fulfillment of the social responsibility of the supplier.In reality,There are different power structures.As the powers of members are different in different dominant models,members with greater powers will choose more favorable contracts for themselves to incentivize the fulfillment of social responsibilities.This paper analyzes two-tier supply chain composed of a single supplier and a single retailer,where the supplier exhibits corporate social responsibility of the product safety aspects.Market power structures(retailer-led,supplier-led,and asymmetric power)and social responsibility in supply chain incentive contracts(revenue-sharing ex post incentives and cost-sharing prior incentives)are integrated to maximize the fulfillment of social responsibilities on the premise that the profits of the two parties do not decrease after the introduction of the contract.we will study how to make choices in different contract models in different power structures in order to better motivate supplier to fulfill social responsibilities.We analyze the differences in different power structures in the performance of social responsibility,and how to establish reasonable supply chain contracts to encourage the implementation of social responsibility of supplier.First,it discusses the differences in the profits of the members and intensity of fulfillment of the social responsibility of suppliers before and after the introduction of corporate social responsibility under the three power allocation modes of supplier-led,retailer-led,and asymmetric power;Revenue sharing ex post and cost sharing precedent incentive contracts are introduced,through the comparison of the incentive effects of different contracts under the same power structure model and the incentive effects of the two contracts under different power structure models on corporate social responsibility,We studied respectively the choice of effective contracts in different power structures,and further analysis of the causes of the differences.The study found that,relative to the supplier-dominated model,the supplier would fulfill its social responsibility better in the retailer-dominated model,and the social responsibility in non-leadership supply chains is better than in leadership supply chains.After the introduction of revenue-sharing post contract and cost-sharing ex ante contract,we found that both contracts are feasible for supplier to better fulfill social responsibilities in the supplier-led model and asymmetric power model,but the costsharing contract is more effective.In the retailer-dominated model,although the revenue-sharing contract can motivate the supplier to fulfill corporate social responsibility,after the introduction of the contract,the profit of retailer can not increase,so the contract can not be reached,and the cost-sharing contract only has a stimulating effect when the share is relatively large.Inconsistent with intuition,when the share is relatively large,the cost-sharing contract of ex ante incentive model is more effective.