From Ethical Goodness to Sustainable Excellence: The Impact of Learning Strategy and Practical Wisdom on Corporate Social Responsibility

This study provides empirical evidence that the practical wisdom of an organization (organisational phronesis) promotes socially responsible practices in businesses. It highlights the impact of organisational practical wisdom on improving performance and contributing to the larger societal good. We examined the correlation between organisational practical wisdom, learning strategy, and corporate social responsibility (CSR). We analysed the self-reported perceptions of Austrian for-profit organisation employees. It was performed using the STATA software's multiple regression model. The findings show a noteworthy and favourable association between the constructs. It reveals that an organisation's learning strategy positively affects the presence of phronesis within an organisation, implying that a deliberate focus on learning can contribute to developing and cultivating phronesis. Furthermore, the results indicate that organisational phronesis is positively linked to CSR, reflecting a greater commitment to ethical and sustainable practices that benefit both society and the environment. This paper thus provides novel insights into the role of organisational practical wisdom in creating future-oriented and responsible behaviour that contributes to long-term organisational success.