What role does corporate social responsibility (CSR) play in BSG?

Corporate social responsibility (CSR) plays a significant role in shaping brand perception in the context of the Business Strategy Game. When a company actively engages in CSR initiatives, it cultivates a positive image among consumers, which can differentiate its brand in a competitive market. This enhanced brand perception can lead to increased customer loyalty, improved company reputation, and the ability to command higher prices for products or services. In the BSG, participants often find that their decisions regarding CSR can directly influence customer preferences and perceptions, thus impacting overall sales and profitability.

While CSR can influence other factors within a business, such as employee engagement and even operational aspects like production efficiency, its most impactful role in the context of BSG is related to how the brand is viewed by the public. A strong CSR strategy can also lead to benefits in employee satisfaction and operational effectiveness, but these aspects are primarily secondary to the immediate impacts on brand perception that directly affect market competitiveness.