Recent research has been focused on understanding how cooperation is fostered through various mechanisms in cognitive settings, particularly through pairwise interactions. However, real-world interactions often extend beyond simple dyads, including multiple cliques with both pairwise and higher-order interactions. These complex interactions influence how individuals perceive and adapt their strategies based on social norms. We here introduce a model that explores the evolution of collective strategies and social norms within a heterogeneous environment, encompassing both dyadic and three-body interactions. We find that social norms play a crucial role in promoting cooperation in comparison with simply imitating the most successful neighbour. We also show that the rise of prosocial norms leads to increased cooperation across various social dilemmas, often resulting in shifts from defective to cooperative behaviour. Additionally, we observe that a moderate level of information privacy helps sustaining prosocial norms and curtails antisocial tendencies, even in situations where mutual defection might seem advantageous. Our research thus offers insights into the evolution of cooperation through the lens of social norm diffusion in higher-order networks.