The association between organisational culture, CSR practices and organisational performance in an emerging economy

Abstract

PurposeThis study aims to investigate the influence of organisational culture, specifically O’Reillyet al.’s (1991) six dimensions of the organisational culture profile (respect for people, outcome orientation, team orientation, innovation, attention to detail and stability) on corporate social responsibility (CSR) practices and the subsequent impact of CSR practices on organisational performance from the context of an emerging economy.Design/methodology/approachThe study used a survey of middle- and higher-level managers in Bangladeshi organisations to develop a seven-dimensional model of CSR practices and used structural equation modelling to analyse the developed hypotheses.FindingsThe findings provide evidence of the influence of the six different dimensions of organisational culture on the different dimensions of CSR practices. The findings highlight the diverse impacts (i.e. positive and negative) of CSR practices on organisational performance. The study also highlights the direct influence of organisational culture on both financial and non-financial performance. In particular, the outcome and team orientation culture are positively associated with non-financial and financial performance, respectively, while an innovative culture is negatively associated with both non-financial and financial performance.Practical implicationsThe findings of the study provide practitioners, internal (i.e. the managers and business owners of both the local and multinational organisations) and external policy-makers, and foreign investors in an emerging economy with new insights into the role of an intra-organisational factor (i.e. organisational culture) in influencing the adoption of CSR practices and the subsequent impact of CSR practices on organisational performance.Originality/valueUsing the 52 guidelines of CSR practices provided by the Organisation for Economic Co-operation and Development, this study provides a unique empirical insight into the influence of organisational culture on CSR practices and the impact of CSR practices on organisational performance. The findings contribute to the limited CSR literature examining the influence of organisational culture on the adoption of CSR practices and its subsequent impact on organisational performance in an emerging economy.