Problem Definition: We examine how a profit-driven firm (she) can motivate better social responsibility (SR) practices by a supplier (he) when these practices cannot be perfectly observed by the firm. We focus on the firm's investment in the supplier's SR capabilities. To capture the influence...

The acceleration of global warming has forced governments to further monitor and regulate the greenhouse gas emissions of industry. One of the simplest and most common approaches that governments use to reduce firms' emissions is to set an environmental standard for firms to comply with before a...