Corporate social responsibility practice in resolving conflict of interests in a sustainable supply chain

Sustainability is more like a mandatory requirement in today’s business world. This study investigates coordination decisions in a dyadic supply chain with a socially responsible manufacturer. Social aspect of sustainability is getting more attention in addressing quantitative mathematical models. With use of participative pricing applications, an extension of this mechanism is applied to resolve the conflict of interests in a retailing channel. Cause-related marketing is proved to be an effective approach in satisfying both the economic and social concerns in a business practice. Our findings prove the applicability of the proposed model. Pricing decisions of the supply chain members are successfully coordinated via a revenue-sharing contract. Sensitivity analysis shows that the channel members gain more profit under the new pricing scheme while benefiting the society in terms of social responsibility.