Gordon, Mikhail
(2024)
Essays in Sustainable and Socially Responsible Operations.
Doctoral Dissertation, University of Pittsburgh.
(Unpublished)
Abstract
This dissertation is directed toward understanding sustainable and socially responsible investments made by supply chains. The first essay in my dissertation examines sustainable investment specifically firm competition using corporate social responsibility and green investments as competitive tools. The second essay in my dissertation examines different forms of corporate social responsibility made by firms, specifically general dollar investments and product donation.
In essay 1, I examine how firms can use sustainability in competition. Using a three-period model, we examine two competitive supply chains, each of which consists of a retailer and an exclusive manufacturer. One retailer invests in both direct (greening) and indirect (corporate social responsibility activities, abbrev. CSR) forms of sustainable investment, while the other invests strictly in CSR. A 3-period game is used to identify equilibria for CSR investment (Stage 1), wholesale prices (Stage 2) and retail prices (Stage 3). We find that under certain conditions, either of the retailers can obtain higher profits, depending on the cost of indirect investment and its effectiveness. In studying the impact of parameter changes on the equilibria, we attain counterintuitive results. For instance, when the green retailer has a smaller market share and thus lower profit, he may try to reverse his weakness by increasing CSR investment. Therefore, higher indirect investment cost may incentivize the green retailer to increase his CSR investment. We compare the competitive environment results with a monopoly setting and find that competition decreases overall CSR investment. We consider when manufacturers can commit to their pricing over an extended period. When given this first mover’s advantage manufacturers decrease their wholesale pricing to incentivize CSR investment by retailers. By differentiating between greening products and CSR and modeling their synergistic effect, we show the potential of sustainable investment leading to competitive advantage.
In essay 2, I analyze the options that firms have in making corporate social responsibility (CSR) investment. CSR is broadly classified into four types: environmental efforts, philanthropy, ethical labor practices and volunteering (Schooley, 2020). The focus of this analysis is on philanthropic CSR, specifically two types: monetary and donation based. Monetary CSR (m-CSR) focuses on donating a set amount of cash into the community, largely through a nonprofit organization. Donation-based CSR (d-CSR) is when a firm donates their product into a community that has a need for it. Using a two-period model, we examine a competitive context of two vertically integrated supply chains. Each of the supply chains can invest in CSR and may choose between m-CSR and d-CSR. We optimize to identify equilibrium CSR program choice and investment amount. We identify the conditions under which either of the CSR programs can dominate (both supply chains use the same program) along with conditions for asymmetry in program choice. This equilibrium largely depends on the effectiveness of the CSR programs and the polarization of consumers. We find that when CSR programs are equally effective, the profits of both supply chains are maximized by choosing d-CSR. In the asymmetric environment when d-CSR is at advantage it will always lead to higher profits, this is not necessarily the case when the effectiveness advantage is held by m-CSR.
Share
| Citation/Export: |
|
| Social Networking: |
|
Details
| Item Type: |
University of Pittsburgh ETD
|
| Status: |
Unpublished |
| Creators/Authors: |
|
| ETD Committee: |
|
| Date: |
19 July 2024 |
| Date Type: |
Publication |
| Defense Date: |
18 December 2020 |
| Approval Date: |
19 July 2024 |
| Submission Date: |
17 February 2021 |
| Access Restriction: |
2 year -- Restrict access to University of Pittsburgh for a period of 2 years. |
| Number of Pages: |
112 |
| Institution: |
University of Pittsburgh |
| Schools and Programs: |
Joseph M. Katz Graduate School of Business > Business Administration |
| Degree: |
PhD - Doctor of Philosophy |
| Thesis Type: |
Doctoral Dissertation |
| Refereed: |
Yes |
| Uncontrolled Keywords: |
Social Responsibility; Sustainability; CSR; Game Theory |
| Date Deposited: |
26 Feb 2025 21:29 |
| Last Modified: |
26 Feb 2025 21:29 |
| URI: |
http://d-scholarship.pitt.edu/id/eprint/40252 |
Metrics
Monthly Views for the past 3 years
Plum Analytics
Actions (login required)
 |
View Item |
![[img]](https://d-scholarship.pitt.edu/style/images/fileicons/application_pdf.png)
![[feed]](/images/feed-icon-32x32.png){kind=icon}