Validating a framework of the integration of Corporate Social Responsibility and Culture: The Case of Hotel Industry

Nyoman Indah Kusuma Dewi, I Gusti Agung Bagus Mataram and I Wayan Siwantara
Additional contact information
Nyoman Indah Kusuma Dewi: Business Administration Department, Bali State Polytechnic, Bali, Indonesia.
I Gusti Agung Bagus Mataram: Tourism Department, Bali State Polytechnic, Bali, Indonesia.
I Wayan Siwantara: Business Administration Department, Bali State Polytechnic, Bali, Indonesia.

International Journal of Business and Economic Affairs (IJBEA), 2017, vol. 2, issue 1, 31-44

Abstract: Although Corporate Social Responsibility (hereafter CSR) concept has been introduced for decades, it hasonly recently been acknowledged and implemented by most companies throughout the world. This is triggered by theneed for sustainability and created competitive advantage. CSR is originated from Western countries which have culturaland national di erences from Eastern countries. In fact, the majority of empirical studies of CSR had been conducted inWestern countries. The generalization then becomes inappropriate. Thus, it is a must to study the di usion of the localculture with CSR. CSR has increasingly received attention from hotel management as one of its marketing strategies fordealing with the erce competition in the hotel industry. In addition, culture and tourism are regarded as one entitythat link to and in uence each other. Part of Balinese culture is Tri Hita Karana which is widely accepted as a way oflife to preserve a harmonious relationship between human with God (parahyangan), human with human (pawongan),and human with the environment (palemahan). Therefore, the purpose of this paper is to validate a framework of theintegration of CSR and culture particularly in the hotel industry in Badung regency, Bali. The framework had beendrawn from previous research and needs to be validated utilizing quantitative research since the framework had beendeveloped using qualitative research. A Con rmatory Factor Analysis is a method used to test the validity of the factorsin the framework. The ndings revealed that the factors in the framework are con rmed. The reasons for implementingCSR based on Tri Hita Karana are: (1) CSR as philanthropy; (2) CSR as risk management; and (3) CSR as valuecreation. These three are intended to build the company's reputation and earn the trust from society, which in turn wouldincrease the company's value in society. The CSR programs are the collaboration between hotel and stakeholders such ascustomers, shareholders, employees, partners, communities and organizations (e.g., educational institutions, associations,governments, foundations and NGOs). Hotel and stakeholders are in constant communication to improve their relationship.

Keywords: Corporate Social Responsibility (CSR); Tri Hita Karana; Framework; Hotel (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ijbea.com/ojs/index.php/ijbea/article/view/44 (application/pdf)
https://ijbea.com/ojs/index.php/ijbea/article/view/44/34 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aya:ijbeaa:2017:p:31-44

DOI: 10.24088/IJBEA-2017-21004

Access Statistics for this article

International Journal of Business and Economic Affairs (IJBEA) is currently edited by Sana N. Maswadeh

More articles in International Journal of Business and Economic Affairs (IJBEA) from Sana N. Maswadeh H # 15, Street # 9, Margalla view Housing Society, D-17, Islamabad.
Bibliographic data for series maintained by Sana N. Maswadeh ().