In the absence of credible information and corresponding positive feedback from stakeholders, firms have limited incentive to invest in CSR practices. This paper focuses on the under-exploited potential of initiatives designed to overcome the inhibiting effects of information asymmetries on the adoption of socially responsible behaviors. Mechanisms to address information asymmetries can accelerate the adoption of socially responsible practices by increasing the rewards firms receive for responsible behavior, and raise the cost of retaining less responsible behaviors by making them more (...) visible to interested stakeholders. (shrink)

Recent studies have shown that we should re-think the value creation process leveraging the utility functions of multiple stakeholders . Following this approach, we develop a case study that shows a real example of shared value creation. The case focuses on Palm, a small Italian pallet manufacturer that has adopted a socially and environmentally conscious business model that produces value for multiple stakeholders.