Selling format choices in e-commerce platform considering green investment and corporate social responsibility

Environmental and social responsibility are crucial for sustainable development. Considering green investment and corporate social responsibility (CSR) simultaneously, we investigate the selling format choice within the context of an e-commerce supply chain comprising a single manufacturer and one e-tailer. We explore three scenarios: one without CSR (N-CSR), one where the e-tailer shows CSR (E-CSR), and another where the manufacturer demonstrates CSR (M-CSR). We discover that the manufacturer prefers the agency format when the commission rate is low and the wholesale format when it's high. The specific threshold for this decision balances the commission fee in the agency format with the double marginalization effect in the wholesale format. Under E-CSR, a stronger CSR focus makes the wholesale format more attractive to the manufacturer, while under M-CSR, it makes the agency format more appealing. Moreover, we find that CSR can encourage the manufacturer to invest more in environmental responsibility. From an economic standpoint, CSR can improve the overall profitability of the supply chain, but it may affect the e-tailer's and manufacturer's profits differently. Our study provides insights into how environmental and social responsibility influence decisions and economic outcomes in e-commerce supply chains.