Strategic Cognition of Corporate Social Responsibility: Empirical Evidence from Leading Organizations in a Developing Economy

Abstract

The purpose of this research is to investigate the notion of CSR strategy-aspractice through managerial cognition of CSR strategy formulation and implementation. In so doing, this research examines the extent to which strategic HR and organizational learning facilitate CSR strategy formulation and implementation to impact organizational performance and reputation. This research has borrowed theoretical lenses of resource-based view (RBV) and sensemaking theory to examine the relevance of managerial cognition with respect to CSR strategy formulation and implementation and to what extent CSR strategy implementation influence organizational performance and reputation. This research has adopted the crosssectional research design and collected data from ‘CSR strategists’ including CEOs, CSR committee and team members, HR managers, CSR authorized personnel (internal) and other top managers. This study has confirmed the cognitive role of managers for CSR strategy formulation and implementation to positively influence organizational performance and reputation. Taking this debate further, this study has examined the relevance of organizational resource namely strategic HR as an important moderator to facilitate the relationships among CSR strategy formulation and implementation, organizational performance and reputation. As per the argument of strategy-as-practice, the process of CSR strategy formulation and implementation is iterative in nature and largely depends on trial and error. This aspect of strategic cognition of CSR is captured by examining the role of organizational learning as a mediator between the association of CSR strategy implementation and organizational performance. This study finds support for the notion of organizational learning as a mediator between strategy implementation and organizational performance thereby emphasizing the role of organizational learning with respect to CSR strategy implementation. This study makes important contributions with respect to strategic management, CSR and management literatures. First, this study has supported the relevance of CSR strategy-as-practice for comprehending managerial cognition of CSR strategy formulation and implementation. Second, this research has demonstrated that CSR strategy formulation and implementation are positive contributors for the better organizational performance and reputation. Third, the pertinence of strategic HR has been established with respect to CSR strategy and thereby CSR strategists can engage HR to play a strategic role for attaining better organizational performance and reputation. Final, the role of organizational learning with respect to strategy implementation and organizational performance has confirmed the iterative nature of CSR strategy implementation.