It is undeniable that every organization and company will eventually need to move toward sustainability if they wish to survive and remain competitive. In order to attain sustainability, it is very important to optimize all its dimensions at the same time. The present paper develops an integrated model that simultaneously considers three major dimensions of sustainability in a supply chain with government intervention. We consider a supply chain that consists of one manufacturer and one retailer and government in a higher level role as a leader for the whole supply chain. In this paper, sustainability refers to the integration of greening products (environment), consumer surplus (society) and organization profits (economy). We discuss pricing, greening and social welfare policies in the supply chain with and without government intervention. The equilibrium solutions of the centralized and decentralized models with and without government intervention are derived based on game theory concepts. Our findings show that different government policies have significant impacts on the profit of the supply chain members as well as on the environment. Incorporating a fraction of consumer surplus in the government profit function has a greater effect on the supply chain members’ profit, and on the green degree of the product, than considering environmental concerns. We also propose a contract to coordinate the decentralized supply chain.
