The aim of the thesis was to research the level of application of the concept of corporate social responsibility (hereinafter: „CSR“) and business ethic by the companies in Croatia. Additionally, thesis shall provide a short overview of the concept of ethics and CSR as well as the development of those concepts in Croatia and worldwide, by indicating the examples of good practice. Reasons for application of the concept of social responsibility in business are also subject to this thesis as well as areas of possible application of CSR. The empirical part of the thesis is based on an anonymous survey conducted over 95 examinees, which are employed in different companies. The following parameters were analyzed: socio-demographic characteristics of examinees, examinees' familiarity with the concept of CSR, practice of CSR in companies, year of establishing the CSR practice in the company, areas of application and effect that CSR has on the company and its business. Furthermore, this thesis examined the level of presence the Code of Ethics and Professional Conduct and its availability and success in preventing unethical behavior in companies. Also, the thesis examined the differences between public and private companies, small and large businesses, when taking into consideration all aforementioned parameters. 66% of the examinees are familiar with the concept of CSR, and most of them (53.70%) believes that respective concept is being carried out in the companies only in informal manner. The examinees with higher level of education are more familiar with the concept (p = 0.034, p <0.050) while there is no differences when taking into consideration size and sector to which the company belongs to. CSR is most often practiced in the following categories: ethical labor practices and environmental protection, and CSR has the most positive effect on market competition. 58.90% of the companies apply Code of Ethics and Professional Conduct, however 78.58% of the examinees believe that it does not completely prevent unethical behavior. The practice of CSR and business ethic in Croatia has been rising in the last 5-10 years, nevertheless fundamental changes need to be done in educational, economic and political systems in order to achieve complete and successful implementation of CSR.