Creating Shared Value and Strategic Corporate Social Responsibility through Outsourcing within Supply Chain Management

Abstract

One way to develop local clusters is to strengthen those clusters by using outsourcing to conduct strategic social responsibility, or in other words, to create shared value, which is a win-win strategy for the buyer, supplier, and society and the best and most viable alternative to traditional corporate social responsibilities. In the leading research, a model for decision-making within the supply chain has been developed for purchasing based on shared value creation, long-term relationship management, and purchasing strategies. The research consists of two strategic mathematical models, using goal programming, and then is solved by a meta-heuristic algorithm. Potential outsourcing companies are assessed and then clustered according to their geographic locations in the decision-making process. One (or several) cluster(s) was selected among clusters based on knowledge and relationship criteria. Besides, in the primary mathematical model, the orders in different periods and the selection of suppliers are determined. In this model, in addition to optimizing the cost, the dispersion of purchases from suppliers is maximized to increase relationships and strengthen all members of the cluster. Maximizing the distribution by converting a secondary objective function to goal-programming variables transforms the multi-objective model into a single-objective model. In addition to economic benefits for buyers and suppliers, this purchasing plan concentrates on strengthening the local industrial cluster, fostering employment and ease of recruitment for human resources, accessing more infrastructures and technical support facilities, developing an education system in the region, and assisting knowledge-based enterprises with development.