Although corporate social responsibility (CSR) program selection have been studied extensively through diverse criteria, yet there is still few studies examine the mandatory CSR law as one of criteria that need to be considered in CSR program selection. This study presents an integrated approach and scientific techniques for CSR programs selection for hotel industries in East Java province in Indonesia. This study contributes the real explanation about CSR as well as brought a real case about CSR program selection by considering mandatory CSR law as one of criteria.
Decision Making and Trial Evaluation (DEMATEL) and Analytical Network Process (ANP) were used to examine the causal relations among criteria and pairwise comparison between criteria and alternative programs. The result indicate that organization image and human resource management performance are the most two important criteria in leading the hotel industry in East Java to fulfill its CSR goals yet mandatory CSR law (law abiding) criterion seems not give any significant influence. The findings also found out that the top three CSR programs based on experts’ opinion are: (1) employee training, (2) local community empowerment and (3) local tourism development. It can be indicated from the results that the best CSR programs based on experts’ choice are heavily focused on social and economic than the other fields.

CONTENTS
ABSTRACT iii
ACKNOWLEDGEMENT iv
LIST OF TABLES vii
LIST OF FIGURES viii
CHAPTER ONE INTRODUCTION 1
1.1 Research Background and Motivation 1
1.2 Research Objectives and Contribution 3
1.3 Scope of the Study 4
1.4 Research Procedure 4
1.5 The Structure of This Study 5
CHAPTER TWO LITERATURE REVIEW 7
2.1. Definition of Corporate Social Responsibility 7
2.2. Tourism and Hospitality Industry 8
2.3. Corporate Social Responsibility in Tourism and Hospitality Industry 9
2.4. Corporate Social Responsibility Program in Hotel Industries 10
2.5. Corporate Social Responsibility Dimension and Criteria 14
2.5.1 Organization Image 15
2.5.2 Company Development 16
2.5.3 Human Resource Management Performance 17
2.5.4 Stockholder Interest 17
2.5.5. Law Abiding 18
CHAPTER THREE METHODOLOGY 20
3.1. Analytic Structure Construction 20
3.2. Decision Making Trial and Evaluation Laboratory (DEMATEL) 22
3.3. Analytical Network Process (ANP) 25
3.4. The Integrated Method of DEMATEL and ANP 27
3.5. Questionnaire Design, Measurement and Analysis 28
3.6. Sampling Plan 29
CHAPTER 4 RESEARCH RESULTS 31
4.1. Corporate Social Responsibility Program in East Java Province 31
4.1.1. East Java Province Mandatory CSR Law 31
4.1.2. Corporate Social Responsibility in Hotel Industry 32
4.2. DEMATEL Result 33
4.3. ANP Result 36
CHAPTER FIVE CONCLUSION AND DISCUSSION 42
5.1 Discussion 42
5.2 Implication 47
5.3 Research Limitations 49
REFERENCES 50
APPENDICES 59
Appendix A DEMATEL Survey Questionnaire 59
Appendix B ANP Survey Questionnaire 61

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