Social responsibility is a business model in which companies incorporate social and environmental elements into their business activities. Corporate social responsibility (CSR) helps individuals and companies make a positive impact on the community. Many companies use the concept of social responsibility in their business operations to gain a competitive advantage and increase their economic and financial results. Among other things, ethical decision-making creates a sense of social responsibility to all internal and external stakeholders and leads to economic efficiency. By acting in a socially responsible manner, companies strive not only to improve their own operations and achieve all their business objectives more efficiently, but also to improve various sectors of society and, in this way, enhance the positive reputation of the company itself by improving the quality of life in the community. In the last article, an attempt is made to present the importance of applying the concept of social responsibility in the modern business world. Although the concept of socially responsible actions is very often associated with large companies, small and medium enterprises should also consider ethical and environmental standards in their activities. In the Republic of Croatia, CSR is developing more slowly than in other countries. However, this concept is becoming increasingly important, as the social and economic development of the country requires a balance between the profitability of the company (economic contribution) and the development of the community (social and environmental contribution).