Sustainability and Corporate Social Responsibility in Closed Loop Supply Chain

Due to the awareness of environmental issues and the dwindling natural virgin resources, many company have attempted to increase the sustainability of their activities. One efficient way to pursue company's sustainability is incorporation of consideration of corporate social responsibility (CSR) to designing a closed loop supply chain (CLSC). CLSC is now a revenue opportunity and low environmental emission application for manufacturers instead of classical cost-minimization approach. Recently, some governmental legislation forced producers to take care of End of Life (EOL) products. Electrical goods contains mandatory requirements on collection, recycling, and recovery in some country. A supply chain, in its classical form (forward supply chain), is a combination of processes to minimize cost by fulfill customers' requests. Reverse logistics plan and control EOL product from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. If we consider forward and reverse supply chains simultaneously, the result network will construct a CLSC. This paper developed a mathematical model to consider corporate social responsibility activities in CLSC. This research formulates a multi-objective problem for closed loop supply chain (CLSC) design by incorporating CSR. Moreover the model, in addition to pursue objectives that maximize profit, minimize environmental emission, and maximize CSR objective, provides a range of strategic decision solutions for decision makers to select plan for a CLSC incorporating CSR. A proposed multi-objective mixed-integer linear programming (MILP) model was solved. A numerical example was used to validak2 the potential application of th,2 proposed model. (C) 2019 The Authors. Published by Elsevier Ltd.