Decision Support Dynamics of supply chain networks with corporate social responsibility through integrated environmental decision-making Jose M. Cruz * Department of Operations and Information Management, School of Business, University of Connecticut, Storrs, CT 06269, USA Received 7 August 2006; accepted 6 December 2006 Available online 22 December 2006 Abstract In this paper, we develop a dynamic framework for the modeling and analysis of supply chain networks with corporate social responsibility through integrated environmental decision-making. Through a multilevel supply chain network, we model the multicriteria decision-making behavior of the various decision-makers (manufacturers, retailers, and consum- ers), which includes the maximization of profit, the minimization of emission (waste), and the minimization of risk. We explore the dynamic evolution of the product flows, the associated product prices, as well as the levels of social responsi- bility activities on the network until an equilibrium pattern is achieved. We provide some qualitative properties of the dynamic trajectories, under suitable assumptions, and propose a discrete-time algorithm which is then applied to track the evolution of the levels of social responsibility activities, product flows and prices over time. We illustrate the model and computational procedure with several numerical examples. Ó 2006 Elsevier B.V. All rights reserved. Keywords: Supply chains network; Environment; Risk management; Multicriteria optimization; Variational inequalities 1. Introduction Corporate social responsibility (CSR) has been a theme of many researchers. Carroll (1999) traced the evo- lution of the CSR concept and found that the CSR construct originated in the 1950s (see Bowen, 1953). From 1953 to 1970, most of the literature focused on the responsibility of the businessman (see Bowen, 1953). From 1970 to 1980, the theme shifted to the characteristics of socially responsible behavior (see, e.g., Davis, 1973; Carroll, 1979). In the 1980s, the themes of stakeholder theory (cf. Freeman, 1984), business ethics (cf. Fred- erick, 1986), and corporate social performance (cf. Drucker, 1984) dominated the era. In the 1990s, a number of empirical studies attempted to correlate CRS with financial performance (Clarkson, 1991; Kotter and Hesk- ett, 1992; Collins and Porras, 1995; Waddock and Graves, 1997; Berman et al., 1999; Roman et al., 1999). 0377-2217/$ - see front matter Ó 2006 Elsevier B.V. All rights reserved. doi:10.1016/j.ejor.2006.12.012 * Tel.: +1 413 210 6241; fax: +1 860 486 4839. E-mail address: jcruz@business.uconn.edu European Journal of Operational Research 184 (2008) 1005–1031 www.elsevier.com/locate/ejor