Demographic Factors, Corporate Social Responsibility, Employee Engagement and Corporate Reputation: A Perspective From Hotel Industries In Indonesia
Data of Jakarta’s culture and tourism division in 2011 have shown that there were 108 hotels of the hospitality industry in Jakarta. So, it is not surprising that the hotel industry has been ranked as the second largest contributor to economic growth in Jakarta under the manufacturing industry (Jakarta Central Bureau of Statistics, 2011). Hotel has become an important role in the business world as it provides social and economic benefits due to its activities and jobs it creates. Nevertheless, a hotel also has an unfavorable impact on the natural, social, and economic environment as contributing to climate change, air, and water pollution, as well as other socio-economic issues (Grasbois, 2012). Therefore, the hospitality industry should be able to cope with such problems as a part of its business ethics. One way to reduce the negative impact of the hospitality business activity is to conduct activities related to CSR. In the development of the hospitality industry, they are required to conduct their activities in an ethical manner to boost their reputations (Jung, Namkung, & Yoon, 2010). Research conducted by Jung et al. (2010) revealed that the hotel manager, who works ethically, would make more proactive decisions. As a consequence, the interactions of managers and employees in particular, are generally very influential on the hotel’s reputation. Karani (2011) stated that in addition to enhancing the reputation, CSR activities can also affect patterns of work and a sense of ownership to the employees of the hotel where they work, so they become more productive. Sense of belonging, ownership, and building the company’s reputation, is not separated from the perception of the workers themselves. Thus, perception that arises is influenced by demographic factors.
This research uses exploratory quantitative method, using surveys and hypotheses test. The development of questionnaire refers to the various studies that have been conducted previously. The CSR variables of Maignan and Ferrell (2001) were adopted with the item statements consisting of four dimensions of CSR (economic, legal, ethics, and philanthropy). Corporate reputation questionnaire was adopted from Helm (2007), and the questions for employee engagement were adopted from Alfermann (2011). This study uses primary data by purposive random sampling and the samples are five-star hotels which are located in Jakarta. In total, there are 26 five-star hotels in Jakarta. By using the Slovin formula (E-value of 20%), at least 13 hotels should be used as samples.
Based on the ANOVA test, the results show that the demographic factors that have a significant relationship with CSR are job title/position and education. The issues having significant relationships with corporate reputation are job title/position related to the division. Meanwhile, the issues that have a significant relationship with employee engagement are age and years of work. Based on SEM, the results show that CSR has a significant relationship with the corporate reputation and employee engagement. Meanwhile employee engagement has a significant relationship with corporate reputation. Based on SEM, the results show that CSR has a significant relationship with the corporate reputation and employee engagement. Meanwhile employee engagement has a significant relationship with corporate reputation. Some suggestions for the next study are the need to perform an initial screening associated with employees’ perceptions and understanding of CSR by conducting pre-test or applying the method of focus group discussion. In-depth study can be conducted by specifying particular respondents, such as manager or director. However, further research may also include variables, such as job satisfaction, organizational level of commitment, or may expand the respondents, for example, consumers, suppliers, and shareholders.
- Gunawan J. & Putra, Z. D. P. (2014). Demographic Factors, Corporate Social Responsibility, Employee Engagement and Corporate Reputation: A Perspective From Hotel Industries In Indonesia. Chinese Business Review. 13(8), 509-520.
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