Research On CSR Input Closed-Loop Supply Chain Recycling And Coordination Under Demand Information Asymmetry

With the enhancement of people’s awareness of recycling and the introduction of relevant policies on recycling,more and more enterprises have begun to implement recycling and remanufacturing,but the current recycling rate of waste products in China is still low compared with developed countries.Thus,how to effectively improve the recycling rate of waste products while ensuring corporate profits has attracted much attention.In recent years,corporate social responsibility(CSR)has attracted widespread attention.Although corporate CSR investment cannot directly bring benefits to enterprises,it can promote the increase of demand,and thereby increasing corporate profits.However,how information asymmetry affects CSR inputs and the recycling of used products is not fully understood.Based on the above background analysis,this paper considers a closed-loop supply chain.Under the asymmetric situation of manufacturer market demand information,the CSR input and recycling decision-making of closed-loop supply chain are studied.Four closed-loop supply chain decision-making models were constructed in which manufacturer and retailer were responsible for CSR input and recycling,and the impact of consumer CSR input sensitivity coefficient and demand information asymmetry on the operation optimization of closed-loop supply chain was analyzed.When retailer knows the true market capacity and manufacturer only know the probability of high market capacity,how can manufacturer design contracts to ensure profitability and compliance with environmental responsibility based on the best recycling channels and CSR input entities described above.In this paper,a centralized supply chain and a manufacturer-led decentralized supply chain coordination model are established,respectively.The results of this paper show that the increase of consumer CSR input sensitivity coefficient is not only conducive to improving the CSR input level and waste product recovery rate of closed-loop supply chain,but also conducive to increasing the profits of manufacturer and retailer.In terms of increasing the level of CSR input,manufacturer is most effective when they are responsible for CSR investment and selfrecycling.In terms of increasing the recycling rate of waste products and increasing market demand,retailer is responsible for CSR investment and manufacturer is better effective when recycling.Compared with the information symmetry situation,the asymmetric information of manufacturer’ demand will always lead to a decrease in their own profits,but it will not necessarily reduce retailer’ profits.The retailer is responsible for CSR input and the manufacturer recycles the operation mode is more conducive to the overall operation of the closed-loop supply chain system.In the coordinated contract model,under the equilibrium condition,the optimal contract under sufficient information ensures that the system profit,waste product recovery rate and CSR input level of the decentralized supply chain are equal to the system profit,waste product recovery rate and CSR input level of the integrated supply chain,so as to ensure the profitability and environmental responsibility of the enterprise.Under the condition of information asymmetry,manufacturer induce retailer to disclose the true market capacity by providing a series of contracts,and actively participate in CSR investment.In addition,the sensitivity analysis shows that when the sensitivity coefficient of consumer CSR input increases,it is not only conducive to improving the CSR input level and waste product recovery rate of the closed-loop supply chain,but also conducive to increasing the overall profit of the closed-loop supply chain.This study provides a theoretical basis for the selection of recycling channels and the formulation of coordination contracts for the closed-loop supply chain with asymmetric demand information.