Customer Participation in Implementation of Development

CSR Hotel for Environmental Conservation

Johny Subarkah, Ravik Karsidi, Kuncoro Diharjo and Drajat Tri Kartono

Doctoral Program of Community Development / Empowerment Development, Sebelas Maret University, Surakarta,

Indonesia

Keywords: Customer Participation, CSR Hotel Development, Environmental Conservation.

Abstract: The hospitality industry sector has now implemented many CSR activities. But the development of CSR in

the tourism sector, especially hotels, does not run as fast as other business sectors. Corporate social

responsibility is an important thing that needs to be considered for the progress of a country. This study aims

to determine the effect of hotel customer participation in developing CSR. The data used is sourced from the

distribution of questionnaires and interviews to customers of the Lorin Solo Hotel and Sahid Jaya Solo Hotels.

The results of the study indicate that hotel customer participation has a positive influence on hotel CSR

development. This means that through the activities of Hotel CSR Development carried out it will have a

good effect and make the image of the hotel become increasingly increasing and Micro Farmers as

environmental conservation-based businesses become more empowered as partners of Hotels.

1 INTRODUCTION

Satisfaction with star-rated hotel services in

Indonesia is still different. As for example three-star,

four-star and five-star hotels in the Special Region of

Yogyakarta have not provided maximum customer

satisfaction. This is shown by the higher expectations

of customers for personal contacts, supporting

physical facilities and equipment than the

performance perceived by customers (Maskuri

Utomo, 2010).

Surakarta and its surrounding areas have quite a

number of star hotels. One star hotels as many as 7

hotels, two star hotels as many as 10 hotels, three star

hotels as many as 15 hotels, four star hotels as many

as 5 hotels and five star hotels as many as 4 hotels. Of

all the star hotels can accommodate 12,928 guests per

day. The occupancy rate of hotel rooms in Surakarta

in 2015 amounted to 39.73% and in 2016 amounted

to 44.11%. From these data it can be seen that

occupancy rates in this region are still low. This will

also lead to fierce competition among star hotels in

Surakarta.

Corporate social responsibility (CSR) is a concept

that is still an interesting study material among

academics and in the business world. This is

inseparable from the differences in views between

adherents of classical economic theory such as Adam

Smith who views that the company is solely tasked

with seeking profits. This opinion is also reinforced

by Milton Friedman (1962) in his book entitled

Capitalism and Freedom, essentially arguing that the

only purpose of a company's social responsiveness is

to maximize the company's income and wealth for its

shareholders.

In the tourism sector, especially the hospitality

industry, the development of this concept does not run

as fast as in the business sector where business

activities manage and utilize natural resources, such

as mining. The field of hospitality services when

viewed in an explanation Article 74 of the Company

Law is not a business activity that utilizes natural

resources but can be interpreted as a business activity

that has an impact on the function of natural resource

capabilities. This seems to make the hotel become not

too urgent to implement CSR. If mining companies

clearly must implement CSR because they use natural

resources as a commodity to be traded. Hotels do not

use natural resources as commodities, but have ever

realized that hotels use water to run their businesses,

even though water is only used as a complementary

service for guests who stay overnight.

To win the competition in getting customers, the

Hotel carries out various marketing efforts and other

strategies. One of them is building an image through

748

Subarkah, J., Karsidi, R., Diharjo, K. and Kartono, D.

Customer Participation in Implementation of Development CSR Hotel for Environmental Conservation.

DOI: 10.5220/0008547207480753

In Proceedings of the 2nd International Conference on Inclusive Business in the Changing World (ICIB 2019), pages 748-753

ISBN: 978-989-758-408-4

CSR activities. In the perspective of environmental

sustainability, clean water used by hotel customers

must be efficient. The electrical energy used must

also be economical. However, not many studies have

been conducted to uncover hotel customers'

perceptions of environmental preservation.

Hotels in Solo Raya have implemented CSR in the

form of giving funds directly to the community.

Activities carried out include school scholarships for

children who live around the hotel, mass circumcision

and so on. This activity is carried out in accordance

with policies issued by the company and is incidental.

Thus it can be seen that CSR carried out by hotels is

still charity (Johny Subarkah, 2015).

The CSR activities of these hotels, especially

Lorin, have been informed to customers and the

public through the hotel internal news posted in the

hotel lobby room and published through mass media

with the slogan "From You Lorin to Share". So from

this it builds a positive perception of the customers of

hotel guests. Based on the aforementioned problems,

this study focuses on how the activities of companies

in community empowerment activities through

corporate social responsibility have been

implemented by hotels in Solo Raya, what are the

keys to the success of the implementation of these

activities and how the company's empowerment

model can be used as an example by other companies

or institutions. So the author takes the title of

“Customer Participation in Implementation of

Development CSR Hotel for Environmental

Conservation.”

2 STUDY OF LITERATURE

2.1 Community Participation

Participation is an activity of participation,

participation or community involvement that is

related to external circumstances only (Sastropoetro,

1995). Verhangen (1979) in Mardikanto (2003) states

that, participation is a special form of interaction and

communication related to division, namely authority,

responsibility and benefits. Theodorson in

Mardikanto (1994) argues that in the everyday sense,

participation is the participation or involvement of

someone (individual or citizen) in a particular

activity.

According to Conyers (1991), there are three

reasons why public participation has a very important

character. First, community participation is a tool to

obtain information about the conditions, needs, and

attitudes of the community, without the presence of

development programs and projects to fail, the second

reason is that the community will trust development

projects or programs if they feel involved in the

preparation and planning process. because people will

know the ins and outs of the project and will have a

sense of belonging. The third reason that encourages

the existence of public participation in many

countries because of the perception that it is a

democratic right if the community is involved in the

development of their own society.

Slamet (1993) distinguishes between levels of

participation, namely participation in the planning

stage, participation in the implementation stage,

participation in the utilization stage. Participation in

the planning stage is the highest level measured by

the degree of involvement. In the planning stage,

people are invited to participate in making decisions

that include formulating goals, intentions and targets.

One of the new development planning methodologies

is recognizing the existence of different capabilities

of each community group in their control and

dependence on the sources that can be achieved in

their environmental systems. Knowledge of technical

planners from above is generally very deep. Because

of this situation, the role of the community itself is

ultimately the one who wants to make the final choice

because they will bear their lives. Therefore, the

planning system must be designed in accordance with

the response of the community, not only because of

their involvement which is so essential in achieving

commitment, but because the community has relevant

information that cannot be reached by the supervisor's

technical planning (Slamet, 1993); 3) the stage of

participation in the implementation of activities.

Community participation in empowerment through

corporate social responsibility, is often interpreted as

the participation of many people to voluntarily

contribute their labor in development activities.

Increasing community participation in

empowerment through corporate social responsibility

is by changing attitudes, behavior and status.

According to Sumodiningrat (1996), to achieve

empowerment can be sought by 1) creating a climate

or atmosphere that allows its potential to develop; 2)

strengthen the potential that has been owned; 3)

protect and prevent the weak from becoming weak;

4) through practical training directly through the

learning process.

2.2 Corporate Social Responsibility

Corporate social responsibility is defined as a

business commitment to contribute to sustainable

Customer Participation in Implementation of Development CSR Hotel for Environmental Conservation

749

economic development, through collaboration with

employees and representatives, families, local

communities and the general public to improve the

quality of life in ways that benefit both the business

and the nation's development (Ambadar , 2008). The

concept of Corporate Social Responsibility involves

the responsibility of partnerships between

government, community resource institutions, and

local (local) communities.

Elkington (1970) has stated the concept of CSR in

three focus namely Profit, Planet and People or (3P),

which is known as the triple bottom line. The synergy

of these three elements is the key to the concept of

sustainable development. CSR is a commitment of

the business community to contribute to sustainable

economic development in collaboration with

workers, local communities and with the wider

community, to improve the quality of life in ways that

benefit both sides.

Business strategy in CSR has a common

understanding of the concept of social marketing

(social marketing). According to Susanto (1990),

social marketing is a design, implementation, and

control of programs that have been calculated to

influence the acceptance of social ideas and include

considerations regarding product design, aspects of

price, communication, and marketing research.

The basis of the concept of corporate citizenship

is the implementation of CSR that is tailored to the

context of the rights and obligations in which the

company operates, where the basis of the

implementation of corporate citizenship activities is

part of CSR that is carried out simultaneously with

company compliance with the laws and regulations

where the company operates by implementing legal

responsibilities (Carroll, 1998).

World Business Council For Sustainablle

Development in New York in (2005), an important

declaration agreed that corporate social responsibility

is a manifestation of the commitment of the business

world to help the United Nations (UN) in realizing the

Millennium Development Goalds (MDGs). The main

goal of the MDGs is to halve poverty and hunger in

2015. It is appropriate to note that the MDG goals are

clearly very difficult, given the growth of the business

world continues to increase, but poverty is increasing.

According to Guidance on Social Responsibility

also provides a definition of social responsibility.

Although international standard social responsibility

guidelines were set in 2011, social responsibility

guidelines are used as references. According to the

International Standard Organization (ISO) 26000,

social responsibility is 1) an organization's social

responsibility for the impacts of organizational

decisions and activities on society and the

environment that are manifested in the form of

transparent and ethical behavior that is in line with

sustainable development and public welfare; 2)

considering stakeholder expectations, in line with

established laws and international behavioral norms;

3) and integrated with the organization as a whole.

In the International Standard Organization (ISO)

26000 there is no specific provision of requirements,

but only different guidelines and instructions on how

to overcome social responsibility problems in certain

regions. This means that according to norms the

organization cannot guarantee. However, the

standard is useful for all types of organizations, for

small, medium or large businesses, for state or local

governments, both for profit organizations and or for

non-profit organizations. While one of the contents of

the International Standard Organization (ISO) 26000

will help organizations, regardless of the size of the

organization, socially responsible behavior. the

organization will be trained in its implementation.

In 2011. the presentation of the International

Standard Organization (ISO) 26000 in the Croatian

country. In ISO 26000, social responsibility includes

7 (seven) main issues, namely 1) community

development; 2) consumers; 3) healthy institutional

activities; 4) environment; 5) employment; 6) human

rights; 7) government organizations.

The basic principles of social responsibility

according to ISO 26000 which are the basis of

implementation that animates or becomes

information in making decisions and social

responsibility activities include 1) compliance with

the law; 2) respect for instruments / international

bodies; 3) respect stakeholders and their interests; 4)

accountability; 5) transparency; 6) ethical behavior;

7) take preventive measures; 8) respect the basics of

human rights. While the definition of social

responsibility is as follows:

“Responsibility of an organization for the impacts

of its decisions and activities on society and the

environment, through transparent and ethical

behavior that contributes to sustainable development,

health and the welfare of society; takes into account

the expectations of stakeholders; is in compliance

with applicable law and consistent with international

norms of behavior; and is integrated throughout the

organization and practiced in its relationships.”

Community empowerment can also be interpreted

as 1) advisory work; 2) vulgarization or explanation /

notification as it is (Roling, 1983) and 3)

mobilization, imitation and awareness (Freire, 1973).

As agents of information dissemination,

empowerment must not only wait for the flow of

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750

information from sources of information (researchers,

information centers, government institutions, media,

and companies) but must actively hunt for

information that is useful and or needed by the people

who are their clients. In this relationship,

empowerment must optimize the use of all available

resources and all media / information channels that

can be used such as newspapers, radio, television,

mass media, banners and the internet so that they are

not left behind and are still believed to be "new"

information sources by the community.

Implementers of community empowerment must

be active in filtering information provided or obtained

by their clients from other sources, both concerning

policies, products, methods, behavioral values and

public perceptions. This is important, because in

addition to empowerment activities, communities

often also obtain information and innovations from

other sources both from government officials,

producers / business people, mass media, non-

governmental organizations, universities that are not

always "right" and useful / benefit the community.

Therefore, experience shows, information that comes

from "outside" is often more oriented to "outside

interests" and there may be many hidden interests

compared to its alignments to the interests of the

people who are their clients (Mardikanto, 2010).

The implementation of community empowerment

by companies needs to pay more attention to

information from the community itself both in the

form of "traditional wisdom" and "independent

technology". This is important, because information

originating from within, besides being tested by time,

is often also more in line with local conditions, both

in terms of technical, economic, social / cultural

conditions, and conformity with the needs of local

community development (Mardikanto, 2009) .

The importance of information concerning the

political rights of the community, in addition to

technological innovations, policies, management, and

work programs. This is important, because those who

carry out activities and improve the welfare of the

community are often very dependent on political will

and decisions (Mardikanto, 2010). Whereas

according to Hadi (2001), there are four

communication models used in public

communication, namely 1) publicity models that

emphasize one-way message patterns from sources to

the public, without paying too much attention to the

correctness of the information delivered; 2) a one-

way model of public information, but has emphasized

the truth of information. This model views the public

as a rational target and when given enough correct

and complete information, it will bring the right

decisions on an issue; 3) two-way two-way

asymmetric model by trying to capture feedback from

the public. This model considers it important to know

the public's position on the issue. Submission of

messages using the principle of persuasion in an

effort to obtain public support; 4) a co-orientation

model that changes the orientation of the public to the

company and illustrates that the company and its

public together adjust perceptions about an idea or

attitude. The use of a participatory model can also be

used in public communication with a bottom up

approach.

2.3 Understanding Green Hotels

In the encyclopedia dictionary, Green Hotel is a hotel

or accommodation that is built by taking into account

the environment in which the hotel is built to

minimize its impact on the environment. The

characteristics of the green hotel itself are:

1 Housekeeping uses a non-toxic cleaning tool.

2 Linen, pillows and mattresses use 100% organic

cotton.

3 A smoke free environment.

4 Using renewable energy such as wind and

solarcell.

5 Soaps and amenites are made from organic

materials.

6 Using natural light so that it saves electricity.

7 Using energy-efficient vehicles in a hotel

environment.

8 Serving organic food from the local area.

9 Using a reusable cutlery.

10 Waste water treatment from the bathroom,

kitchen and laundry to water the garden.

11 Newspapers from recycled materials.

According to the Minister of Tourism and

Creative Economy (Menparenkraf) at the 2011

National Green Hotel Award, Green Hotel is a hotel

that applies environmental care and sustainable

tourism development. There are three fundamental

reasons for implementing Green Hotels in the tourism

industry in Indonesia, namely:

1 The tourism industry such as hotels should be able

to participate in eliminating the dangers of climate

change due to global warming by reducing carbon

emissions, saving energy, conserving water, and

using environmentally friendly materials.

2 Hotels that save energy such as electricity, water

and fuel apparently aim to save on hotel

operational expenses.

3 Demands from the public so that business actors

participate in energy savings and environmental

care.

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751

There are 10 assessment criteria in the Green

Hotel Award 2013 which include land use, energy

use, water conservation, environmentally friendly

materials, air quality, waste management, green

purchasing, hotel management, food management

and corporate social responsibility (CSR).

In the ASEAN Tourism Standards, understanding

Green Hotel is a hotel that is environmentally friendly

and uses renewable energy. The criteria that make the

hotel called ‘green’ are:

1 In the operational and maintenance stages, it

rests on a strategy that is environmentally

friendly.

2 Using products that are environmentally

friendly.

3 There is a concern for the hotel to the

surrounding community.

4 Human resources who understand and care

about the environment.

5 Waste management.

6 Energy efficiency.

7 Water efficiency.

8 Indoor air quality.

9 Noise control.

10 Waste water treatment.

11 Use of non-toxic materials.

From the explanation above, it can be concluded

that the Green Hotel is a hotel design that synergizes

the tourism and ecological sectors in line with the

concept of green architecture with an emphasis on

energy efficiency.

3 METHODOLOGY

This study uses a qualitative descriptive approach and

constructivism paradigm. The research was

conducted in Surakarta, precisely in 2 star hotels,

namely: Lorin Solo Hotel and Sahid Jaya Surakarta

Hotel. Respondents in this study were the customers

of the two hotels. Data is collected through

questionnaires and semi-structured interviews face-

to-face or by telephone and e-mail.

4 DISCUSSION

Customer Participation The hotel is described in 4

(four) aspects, namely participation in funding,

participation in providing goods, participation in

providing knowledge, participation in monitoring the

program. Participation is measured through 5

indicators, namely the frequency of providing

assistance for the development of a hotel CSR

program, the assistance submitted for the

development of a hotel CSR program is sufficiently

adequate, participating in providing information

about assistance for developing hotel CSR programs

to other customers, participating in persuading other

customers about providing assistance for the

development of hotel CSR programs, and

participating in inviting other customers about

providing assistance for the development of hotel

CSR programs. From the results of the analysis, it is

known that the participation indicators of funding for

the development of hotel CSR programs have the

highest average value, which is equal to 4.11. This

provides an explanation that the provision of financial

assistance is an important part of the development of

CSR.

The CSR Development variables in this study are

described in two aspects, namely environment and

social. Environmental aspects are measured through

4 (four) indicators, namely Knowing the development

of hotel CSR program funding for micro-businesses

from year to year, Knowing the allocation of funds

for hotel CSR programs for micro-businesses from

year to year, Knowing the development of goods for

hotel CSR programs for businesses micro from year

to year, Knowing the development of knowledge

provision for micro businesses from year to year,

Knowing the development of the amount of material

/ environmental themes related to activities carried

out by micro businesses from the year and Knowing

the development of reducing waste formation at the

source, specifically sourced from laundry / laundry.

The effect of customer participation on the

development of CSR proved to have a positive effect

on the development of hotel CSR. This shows that the

achievement of CSR development of a hotel is highly

dependent on customer participation by the hotel.

Positive influence arises because customer

participation is oriented towards giving funds,

participation in providing goods, participation in

providing knowledge and participation in monitoring

the program. Thus, customer participation has a

positive impact on the development of CSR in

Indonesia. When viewed from each of the indicators

that shape hotel customer participation developed

based on the opinion of Theodorson in Mardikanto

(1994) which influences the development of hotels,

the following indicators provide and, towards the

development of CSR hotels in Indonesia.

Thus to improve the development of CSR, the

hotel must have good customer participation. This

participation includes participation in providing

funds, participation in providing goods, participation

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752

in providing knowledge and participation in

monitoring the program.

Based on the description, it can be concluded that

Hotel Customer Participation will have an impact on

the Development of CSR Hotels for Environmental

Conservation. The results of this study prove the

existence of a positive relationship between Customer

Participation and CSR Hotel Development for

Environmental Conservation. Higher participation by

customers will enhance the development of CSR

hotels for environmental conservation.

5 CONCLUSION

Hotel Customer Participation has a positive influence

on Hotel CSR Development. Customer involvement

in the implementation of hotel CSR development has

proven to be effective, so that it has an impact on the

empowerment of smallholder micro enterprises

through factors such as; financial assistance, goods

assistance, knowledge assistance and monitoring

assistance as hotel partners based on environmental

conservation.

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