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 organisation (organisational phronesis) promotes socially responsible practices in businesses. Specifically, it highlights how organisational phronesis enhances performance while contributing to the larger societal good. We examined the correlation between organisational practical wisdom, learning strategy, and corporate social responsibility (CSR) by analysing self-reported perceptions of employees in Austrian for-profit organisations, using multiple regression models in STATA. The findings show a noteworthy and favourable association between the constructs. Results reveal 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, organisational phronesis is positively associated with CSR, reflecting a greater commitment to ethical and sustainable practices that benefit both society and the environment. This paper offers novel insights into how organisational phronesis fosters future-oriented, socially responsible behaviour, thereby contributing to long-term organisational success.