Community Development in CSR Programs

Development of Laguna Fishing Pond Tourism

Rachmad Ilham

and Budi Setiawan

Master Program Study of Human Resource Development, Postgraduate School of Universitas Airlangga, Campus B. Jl.

Airlangga No. 4-6 Surabaya, Indonesia

Lecturer of Anthropology Science, Faculty of Social Science and Political Science Universitas Airlangga, Campus B. Jl.

Dharmawangsa Dalam, Surabaya, Indonesia

Keywords: CSR Programs, Tourism, Laguna Fishing Pond, Community Development.

Abstract: This study aims to analyze the effectiveness of the implementation, stages, and constraints of CSR activity

programs in Laguna Fishing Fishing Pond. This study uses descriptive field research method with a

qualitative approach. This research was carried out in Laguna Fishing Village Kalanganyar tourism, Sedati

District, Sidoarjo Regency. Data collection methods used interviews, observation, and documentation.

Intensive depth interviews involving six informants. The analysis technique used is descriptive analysis. The

results showed that the implementation of CSR programs that had been carried out by the company had not

been effective. The implementation stage has not shown conformity with the existing concepts and theories,

from the planning stage to the evaluation stage. The constraints in implementing CSR implementation

programs include limited human resources and the lack of skills or expertise possessed, thus causing some

errors that make CSR programs run by companies in Kalanganyar village, not on target.

1 INTRODUCTION

Corporate Social Responsibility is an agreement of

the World Summit on Sustainable Development

(WSSD) in Johannesburg South Africa 2002 aimed

at encouraging all companies in the world in the

context of creating a sustainable development. One

factor that must be faced in order to achieve

sustainable development is to improve

environmental destruction without sacrificing the

need for economic development and social justice.

CSR is a choice based on the awareness of the

company (Beal, 2014: xi). In business, companies

not only have obligations to shareholders but also

must meet the expectations of stakeholders, namely

employees, business partners, the government and

the surrounding community. A company is a

business entity that is considered to carry out its

social responsibility to the community (Moon, 2014:

4). It shows that the company can appear and be

operated because of the environment that supports it.

CSR has been regulated by the government in

Law No. 40 of 2007 concerning Limited Liability

Company Article 74 Paragraphs on Corporate Social

Responsibility (CSR), namely the company that runs

its business activities in the field concerned with

Natural Resources must carry out social and

environmental responsibilities. CSR is not only

carried out by large companies but also by micro,

small and medium enterprises. While the CSR

budget as seen in the Regulation of the Minister of

State Enterprises No. 4 of 2007 which is 2% of the

company's profit.

The form of CSR implementation for each

company varies depending on the management and

systems of each company. There are seven areas that

must be fulfilled in the formation, management, and

implementation of CSR programs that include agro-

business, education, health, utilization of small and

medium micro enterprises, infrastructure, nature and

culture preservation, and community capacity

building and governance. Apart from various types

of CSR, it is devoted to community empowerment

which of course can provide direct benefits and

various impacts that are gradually able to develop

community independence to become free from

dependence on the government.

Green and Haines (2007: vii) define that

community development is as a planned effort to

produce assets that increase the capacity of the

Ilham, R. and Setiawan, B.

Community Development inÂ

a CSR Programs Development of Laguna Fishing Pond Tourism.

DOI: 10.5220/0007551007650768

In Proceedings of the 2nd International Conference Postgraduate School (ICPS 2018), pages 765-768

ISBN: 978-989-758-348-3

765

population to improve quality of life. Community

development is a multidimensional concept in which

social action can contribute to or weaken the

creation and maintenance of economic, social,

ecological, human, political, and cultural capital of

society. Community development can also be

described as community involvement in the process

of achieving improvements in several aspects of

community life where these actions lead to

strengthening patterns of human relations and

community institutions. One of the many community

development programs carried out by companies as

part of CSR is the development of the tourism

sector.

At present, the tourism sector in Indonesia is

slowly gaining attention and becoming the dominant

socio-economic activity in people's lives. The

tourism sector continues to be developed by the

government and society because this sector

contributes significantly to the country's economic

growth. In his book entitled the sociology of

tourism, (Pitana & Gayatri, 2005: 41) reveals how

vital the role of tourism is for the development of

this republic, the role of the tourism sector is highly

expected by the state so that it can replace the role of

the oil and gas sector which has dominated the

Indonesian economy. The Indonesian state is very

dependent and hopes for its tourism potential.

According to statistical data, it is noted that the

tourism sector contributed significantly to the

national economy. In 2014 the foreign exchange

target was the US $ 5.8 M for 5.8 million foreign

tourists, and in 2015 US $ 6.3 M 6.9 million foreign

tourists, while the 2014 target was the US $ 7.5 M

(Widibyo, 2015). With the tourism potential that is

owned, it still allows opportunities to increase state

revenues from the tourism sector (Dirjen Pariwisata,

2015). Based on the description above, development

and tourism development programs play a very

important role in economic development strategies

in a country or region.

Every region in Indonesia has a great potential

for natural and cultural wealth to be used as a land

for the growth of the tourism sector. One tourism

sector that utilizes the natural environment is

Pancing Laguna pool tourism. It is an obligation for

every company including Laguna fishing pond to

implement CSR as an environmental responsibility.

In this case, tourism is a sector that involves the

community at large. So that forms of CSR that can

be done one of them is related to community

development. This study describes the effectiveness

of the implementation, stages, and constraints of the

Company Social Responsibility activities in the

Laguna fishing pond.

2 METHODOLOGY

This study uses a descriptive field research method

with a qualitative approach. This research was

carried out in Laguna Fishing Village Kalanganyar

tourism, Sedati District, Sidoarjo Regency. Selection

of Laguna fishing pond tourism in Kalanganyar

Village was made as a research location. In order to

ensure the accuracy of data and information obtained

from field research, it is necessary to have an

appropriate data collection technique. The research

method using intensive depth interviews is data

collection techniques or information by face to face

with the informant to get complete and in-depth

data. The informants in the study consisted of seven

informants which included the manager of the

Pancing Laguna pool, visitors to the Laguna fishing

pond, and the Head of the Public Service Division of

the Sedati District Office. Informants are determined

using purposeful sampling techniques. A purposeful

sampling technique is used to get specific data from

selected individuals (Cresswell, 2015: 217).

Informants were chosen based on an

understanding of research problems and phenomena

in research. The results of the interview were in the

form of scripts which were then analysed by

descriptive analysis techniques. As for testing the

validity of qualitative data, it is done by

triangulation. Triangulation is the technique of

checking the validity of data that view something

outside the data obtained by utilizing the use of data

sources, methods, investigators, and theories.

3 RESULT AND DISCUSSION

Sidoarjo Regency has great potential in the field of

fisheries, the ponds area in Sidoarjo Regency

stretches from north to south along the east coast.

Sidoarjo Regency relies on the fisheries sector,

especially the results of milkfish and shrimp

aquaculture as the regional superior commodities.

Developments in the fisheries sector in Sidoarjo

Regency cause the government to appoint Sidoarjo

area as a Minapolitan Area in Indonesia. The

Minapolitan area was developed jointly between the

government, the private sector and non-

governmental organizations to achieve better

ICPS 2018 - 2nd International Conference Postgraduate School

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economic conditions. Mina means fish while politan

/polis means city.

Laguna fishing pond is on Tambak Cemandi

Street, Kalanganyar Village, Sedati District,

Sidoarjo Regency, located in the easternmost region

of Kalanganyar Village. Laguna fishing pond has an

area of ± 3 hectares which is divided into four plots

of fishing ponds. The type of fish used in the Laguna

fishing pond specializes in milkfish, this is because

before it becomes a fishing pond tourist attraction

fishing rod tourism business owners cultivate

milkfish which are then sent to other regions. In

addition, the existing water conditions in

Kalanganyar Village are salt water because it is

located adjacent to the Madura Strait so that the

saltwater environment affects the types of fish that

can survive in it (milkfish) and become a commodity

of local aquaculture.

In general, the stages of implementing a CSR

program include: establishing a vision and mission,

setting goals, setting targets, considering policies,

setting strategies, designing organizational

structures, designing programs, providing human

resources, mapping regions, and determining

funding sources (Wibisono, 2007 ) Laguna fishing

pond tourism in its CSR activities does not begin

with the determination of vision and mission. This is

because almost every social activity carried out by

the company is more short-term and small-scale so

that it does not require special thought regarding the

vision and mission of the activity and is sufficiently

based on the company's main vision and mission.

Setting goals for each social activity carried out

by Laguna are process-oriented and not results.

Whatever the outcome, as long as the process runs

well, it will also have a good influence on the

company. This is not in accordance with Katamba et

al (2012) that the goal is an important orientation in

the success of CSR. The policy setting in Laguna is

carried out by the head of the social activities

implementing team who is also a marketing manager

so that the policies applied are always related to

sales. In relation to the organizational structure in

Laguna, there is no special division responsible for

handling and managing all needs related to the CSR

program starting from the planning to evaluation

stages, which are located directly under top

management.

The provision of human resources in Laguna has

not been maximized because based on the results of

the interviews it was found that the majority of

existing human resources do not have competence

and qualified. This can be an obstacle to the

implementation of CSR programs because HR is an

important component in every operation carried out

by the company, especially in tourism management

(Zontek, 2016: 58). The planning stages carried out

by the company are about operational programs that

start with a survey of locations, forms of activities,

and socialization. For operational CSR activities

carried out by companies mostly always involve the

active participation of local people who are in the

location of CSR activities, both to be involved as

committee and participants. The basis for involving

the active role of citizens around the location of CSR

activities is in accordance with the theory explained

by Wibisono (2007), that CSR operational programs

are as much as possible attempted to be based on

local resources.

The regional division is one of the considerations

including priorities by the company in implementing

each CSR program. The rationale for selecting the

chosen location is the locations that have potential,

and the Laguna Fishing Pool in Karanganyar village

is considered potential so that it can involve local

communities. The funds used so far by companies in

carrying out CSR programs are funds taken from the

marketing budget for promotional posts. As a result,

all this time in the implementation of CSR activities

carried out by the company, elements often aimed at

marketing and increasing the company's turnover.

CSR programs for Laguna fishing ponds are

carried out by the company, including the

implementation of CSR programs with program

patterns. This centralization is due to the company as

the executor or the main organizer of the activity, as

well as the area where the activity takes place in the

area around the company. In practice, the

implementation of this activity collaborates with

other parties, namely the village apparatus and local

villagers. The mechanism for implementing the

program is carried out in a top-down process

because the program is based on a careful survey or

examination by the implementing team of social

activities, agreed upon by the company.

Referring to the description shows that the stages

of CSR implementation carried out by Laguna

fishing ponds do not meet the stages proposed by

Wibisono (2007). This has an impact on the value of

the effectiveness of the implementation of the

program. The effectiveness of CSR programs is

context, input, process, and product aspects.

(Yulianti, 2013). The value of effectiveness can be

seen in the results of achieving goals. The closer the

goal is, the higher the effectiveness level is stated.

Referring to the explanation of the implementation,

the implementation of the Company's Corporate

Social Responsibility activities in Laguna fishing

Community Development inÂ

a CSR Programs Development of Laguna Fishing Pond Tourism

767

rod tourism is not yet effective. This is because the

CSR activity program which run in the village is not

well targeted, in the sense that the results achieved

by Laguna do not approach the expected objectives

of the implementation of the program.

4 CONCLUSIONS

Laguna Fishing Pond tourism as a business that

utilizes natural or environmental potential so that it

has a responsibility in the form of community

development. Katamba et al (2012) explained that

effective CSR can be seen in the achievement of

goals. Based on this, the implementation of CSR

programs is considered to be ineffective because it is

not able to achieve the company's goals and is not on

target. This can be caused by several stages of CSR

implementation are not carried out, such as the

determination of the vision, mission, goals, and

organizational structure. In addition, there are

obstacles to the implementation of CSR which

include internal constraints and limited human

resources. The internal constraints in question are

about the issue of funds (budget) because so far the

company has never provided and budgeted special

funds for the implementation of CSR activities. The

CSR program that has been running so far, uses

funds from promotional posts of the company's

marketing division and if the funds are insufficient,

the team will work on it by owing first to the

company's cooperatives. The human resources

involved so far are not competent human resources

and experts in CSR matters. This is indicated by the

majority of team members who do not know the

theory and concept of CSR as a whole, including the

flow or stages of implementation that should be

carried out.

ACKNOWLEDGEMENTS

The author expressed his gratitude to Laguna

Fishing Village Kalanganyar tourism tour manager,

Sedati, Sidoarjo regarding assistance in the form of

willingness to be informants and objects in this

study. In addition, the authors also convey gratitude

to all informants who have been involved in this

research.

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