Volume 24, 2013
Proceedings of the Twenty-Fourth Annual Meeting
Bruce Paton, Caterina Tantalo
Changing the Landscape
Battling Information Asymmetries to Accelerate Adoption of CSR Business Practices
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.