Nimruji Jammulamadaka and Dinesh B. Khonde, Asian Case Res. J. 15, 157 (2011). DOI: 10.1142/S0218927511001526
Embedding CSR at Burckhardt Compression
This case was prepared by Assistant Professor Nimruji Jammulamadaka of the Indian Institute of Management Calcutta, India and Assistant General Manager Dinesh B. Khonde of Burckhardt Compression (India) Pvt. Ltd., Pune, India, as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative or business situation.
Nimruji Jammulamadaka
Indian Institute of Management, Calcutta, India
Dinesh B. Khonde
Burckhardt Compression (India) Pvt. Ltd., Pune, India
This case deals with a medium-sized engineering company's experiences with initiating CSR. It covers aspects like the rationale for CSR, its relationship with strategy, participation in CSR and speed breakers on the path to building a CSR culture in the company. After sustained growth over a few years, the top management has decided to look beyond profits and embarked on CSR. They allocated 2% of their PBT to their Trust to oversee CSR activities. They began the activities about one and a half years ago. The engagement began with much enthusiasm but with time, it started losing steam. The senior management has also been having a rethink about CSR strategy. Mr. Khonde, the HR head now has to suggest ways of mainstreaming CSR within the company.
Keywords: Corporate social responsibility; CSR culture; strategy; engineering company; India
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Embedding CSR at Burckhardt Compression
1. Presented by :
DIVAKAR A/L REGUPATHI
JAYACELIA A/P MICHAEL
MASYITHAH RAZALI
SRI MAGESWARI A/P PATTEL
AGW624 BUSINESS ISSUES AND SUSTAINABLE DEVELOPMENT
4. This case deals with a medium sized engineering company’s
experiences with initiating CSR. It covers aspects like the rationale
for CSR, its relationship with strategy, participation in CSR and
speed breakers on the path to building a CSR culture in the
company. After sustained growth over a few years, the top
management has decided to look beyond profits and embarked on
CSR. They allocated 2% of their PBT to their Trust to oversee CSR
activities. They began the activities about one and a half years ago.
The engagement began with much enthusiasm but with time, it
started losing steam. The senior management has also been having
a rethink about CSR strategy. Mr. Khonde, the HR head now has to
suggest ways of mainstreaming CSR within the company.
SUMMARY OF THE CASE
5. BCP Policy
CSR Objectives
Early Initiatives
- Yuva ( groom leadership and managerial
skills )
- gym equipment
- visiting mentally adults
- bus shelter
- vocational training
EARLY INITIATIVES
6. Lack of interest showed by villages
Involvement of employees was waning
Survey (sample size = 70)
- Hazy picture CSR
- Completely unaware and don’t know
- No meaningful connection
- Very few initiatives
CHALLENGES IN IMPLEMENTATION
7.
8. 2009 : Rao – inspired by view some other industry leader in
CSR
Give back to society the resource it consumes & engage in
activity where it has core capacity .
Composer Business > What they doing in CSR
Mid 2009 – conduct survey – 10% of employee don’t know
they seriousness of company's effort .
CSR Modal
Corporate philanthropy -> Corporate sustainability
(company not just trying to be a good corporate citizen but
investing in future sustainable environment .
Worried about how does the culture can be created??
9. CONT …
BCP
Exercising foresight
Minimize the use of energy
Electric heat pumps are used to provide heating. Heat
is extracted from the surrounding environment, raised
to a higher temperature level and then used for
heating purposes. The same principle works in reverse
to cool the building during warm weather. Powered by
electricity (25%) and renewable energy (75%), the air-
source heat pump system meets all of the building’s
heating needs
10. CONT …
Minimize the use of water
An “Effluent Treatment Plant” has been installed in
order to use the waste water for other purposes .
A new rain water collector system supplies water for
different machining centers
Recycling and waste disposal
In 2012 the disposal of packing material and wood was
significantly improved. As a result the total waste
declined from 2011 to 2012 from 246 tonnes to 197
tonnes.
11. CONT …
Innovation Environmental protection
product design and development.
entire life cycle of a product.
optimize maintenance cycles. “Compressors for a
LifetimeTM” is not just a saying but a philosophy
that they live by. Around 75% of the compressors
we have manufactured since 1883 are still in use
minimize the use of chemicals.
12. Weakness: In 2008 BCP adopt in practicing CSR from other
Industry.
Corporate philanthropy ???
Outcome : YUVA (young employee below 30 years) worked
together with NGOs to come out different type of activities.
Engage with School for dumb and deaf – donated GYM equipment
Engage with Mentally Challeged Adults – donated diesel geneartor
Wana come out few proposals but dropped –Bus Shelter and
improvement of Nagar Road
Engage with Government for Vocational Eductaion and Training .
Weakness:
The people of Kundhaapuri have good education , health facilities and
benefits overall economics,
Employee participation are very low – CSR link with their own emotional
connects and interest – give direct impact on scale and success in CSR
13. To serve all levels in the society without bias
To fulfill social basic needs
- Electricity and clean water
- Education
To reduce unemployment level
Diverse in green technology
- Produce gas from bio-waste & garbage
14. Attitude among the Burckhardt staff
and citizens
Quality in continuing the CSR
project
15. Compressor for producing green energy.
Expend its existing “CNG package” product line.
Create awareness through their product.
Gas production from bio-waste and
garbage.
Leverage on their competency for the CSR
programme.
Save the environment for the future generation.
Expand initiatives and diversify.
Both in India and globally.
Education on green energy.
16.
17. Include CSR in the company’s Vision and mission.
Educate employees on…
Importance of CSR.
Importance of their role.
Walk the talk.
Top management set an example.
Create a pro-CSR ecosystem.
Allow employees to use work hours for CSR initiatives
(planning/executing).
Tie in the employees family.
Reward employees who contribute.
Employee engagement initiatives.
Contest to brainstorm ideas
Survey/interview to collect ideas
Tie in religious/spiritual values.