Evaluating CSR Effectiveness in the Hotel Sector: From Regulatory Compliance to Sustainable Empowerment of Coastal Communities in East Java
Keywords:
East Java hotel, CSR (Corporate Social Responsibility), CSR effectiveness, regulatory compliance.Abstract
Corporate Social Responsibility (CSR) practices among hotels in the coastal areas of East Java, particularly along the Surabaya–Banyuwangi corridor, remain dominated by a compliance-oriented approach under Law No. 40/2007 Article 74, which mandates the allocation of 2–5% of net profit to social programs. However, these programs achieve only 60–70% effectiveness, largely manifesting as temporary infrastructure donations and formal reporting rather than sustainable improvements in the economic independence of coastal communities. A review of Scopus-indexed literature (2022–2025) reveals a persistent gap between traditional, compartmentalized CSR models and integrated empowerment approaches such as Asset-Based Community Development (ABCD), alongside weak multi-stakeholder synergy and unclear sustainability indicators. This study evaluates the effectiveness of CSR programs at five coastal hotels in East Java using a descriptive qualitative approach supported by a systematic literature review and secondary data from the Financial Services Authority (OJK) and the East Java Statistics Agency (BPS). The findings show an overall CSR effectiveness of 62%, comprising 78% compliance-oriented activity against only 42% genuine empowerment, constrained mainly by limited participation of fishing communities (25%) and a mismatch between CSR programs and local potential. The study recommends that regulators mandate at least 40% of CSR budgets for ABCD-linked empowerment programs and proposes an Airlangga University hotel collaboration pilot for coastal CSR in 2026 to support local SDG achievement.
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