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

1. Presented by :
DIVAKAR A/L REGUPATHI
JAYACELIA A/P MICHAEL
MASYITHAH RAZALI
SRI MAGESWARI A/P PATTEL
AGW624 BUSINESS ISSUES AND SUSTAINABLE DEVELOPMENT

3. CONT…

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

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.

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.