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The Strategies of the Poverty-Alleviation Supply Chain with Government Subsidies and Cost Sharing: Government-Led or Market-Oriented?

by 1,2, 1,2,*, 3,*, 1,2 and 1,2
1
School of Economics and Management, Hebei University of Technology, Tianjin 300401, China
2
The Center for Enterprise Information and Management Innovation, Tianjin Humanities and Social Science Key Research Base, Tianjin 300401, China
3
LeBow College of Business, Drexel University, Philadelphia, PA 19104, USA
*
Authors to whom correspondence should be addressed.
Sustainability 2020, 12(10), 4050; https://doi.org/10.3390/su12104050
Received: 9 April 2020 / Revised: 11 May 2020 / Accepted: 11 May 2020 / Published: 15 May 2020
(This article belongs to the Section Economic and Business Aspects of Sustainability)
Alleviating poverty is a critical problem in many developing countries such as China. In this paper, we consider a poverty-alleviation supply chain composed of one supplier in a poor area and one producer helping the supplier reduce poverty by fulfilling Corporate Social Responsibility (CSR). Our work aims at examining the impacts of government subsidies and Corporate Social Responsibility (CSR) on the poverty-alleviation operations. Four game-theoretic models are constructed and analyzed to investigate the impacts of coefficients of government subsidies and CSR cost sharing on the supplier’s and producer’s profits, social welfare growth, CSR level, wholesale price, output of the supplier, and retail price. Our findings suggest that the most effective poverty-alleviation mechanism in most cases is the combination of government subsidies and market efforts. Contrary to common beliefs that companies have to sacrifice profit for social responsibility, we show that poverty alleviation is reconcilable with profit maximization and social welfare improvement, and companies can achieve a win-win situation of both poverty alleviation and profitability. Our work provides new insights for sustainable poverty alleviation and socially sustainable operations. View Full-Text
Keywords: poverty-alleviation supply chain; corporate social responsibility (CSR); government subsidies; cost sharing poverty-alleviation supply chain; corporate social responsibility (CSR); government subsidies; cost sharing
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MDPI and ACS Style

Kang, K.; Luan, X.; Shen, W.; Ma, Y.; Wei, X. The Strategies of the Poverty-Alleviation Supply Chain with Government Subsidies and Cost Sharing: Government-Led or Market-Oriented? Sustainability 2020, 12, 4050. https://doi.org/10.3390/su12104050

AMA Style

Kang K, Luan X, Shen W, Ma Y, Wei X. The Strategies of the Poverty-Alleviation Supply Chain with Government Subsidies and Cost Sharing: Government-Led or Market-Oriented? Sustainability. 2020; 12(10):4050. https://doi.org/10.3390/su12104050

Chicago/Turabian Style

Kang, Kai, Xinfeng Luan, Wenjing Shen, Yanfang Ma, and Xuguang Wei. 2020. "The Strategies of the Poverty-Alleviation Supply Chain with Government Subsidies and Cost Sharing: Government-Led or Market-Oriented?" Sustainability 12, no. 10: 4050. https://doi.org/10.3390/su12104050

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