Organizational Strategy and Corporate Social Responsibility: The Mediating Effect of Triple Bottom Line.

Md Abdul Masud,Seong Bae,Tehmina Khan,Md Harun Rashid,Jong Kim

doi:10.3390/ijerph16224559

Abstract

Limited research in the area of the triple bottom line (TBL) mediation effect on the relationship between organizational strategic performance (OSP) and corporate social responsibility performance (CSRP) has motivated this study. The objective of this study is to investigate how OSP affects CSRP and the mediation impact of TBL elements through the decision-making process of business management. Considering a sample of 250 employees from Bangladesh, this study used structural equation modelling (SEM) to test the relevant research hypotheses. Through the lens of stakeholder, institutional, legitimacy and resource-based view theories along with rigorous statistical techniques, this study has found that OSP is positively related to CSRP. In terms of the mediation effect, this study has found that economic responsibility has no intervening role while environmental and social responsibility significantly mediated the relationship between OSP and CSRP. Finally, the full mediation power of the model suggests that OSP affects a firm’s strategic decision and CSR outcomes directly as well as indirectly through TBL.

Highlights

Corporate social responsibility (CSR) has been widely discussed in strategic management and organizational behavior literature due to it being a strategic priority for organizations—for example, for the purpose of maintaining legitimacy [1,2,3,4,5,6,7,8,9,10]
We found that Organizational strategic performance (OSP) is positively and significantly associated with corporate social responsibility performance (CSRP) without
We found that OSP directly influences Economic Responsibility Performance (EcRP), while EcRP has no influence on CSRP

Summary

Introduction

Corporate social responsibility (CSR) has been widely discussed in strategic management and organizational behavior literature due to it being a strategic priority for organizations—for example, for the purpose of maintaining legitimacy [1,2,3,4,5,6,7,8,9,10]. Prior strategic management literature has explained strategic planning as an important element of the innovative capability of management and a demonstration of the commitment to meet stakeholder expectations [10]. It has been considered as a trade-off between financial performance and innovative activity [12]. Complexity arises with strategic ambiguity and around resource requirements for internal or external business development to attain strategic objectives [3,11,13]. Organizational strategic performance (OSP) is the execution of objectives set in the business to gain efficiencies to improve performance. Arend et al [10] reported that flexible strategic planning has the potential to decrease financial performance while a reward-based, knowledge

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Discussion

Conclusion