Corporate social responsibility is a modern business practice applied by a growing number of companies in the EU and worldwide in response to various economic and social pressures, and those concerning environmental protection. Expressing social responsibility and the commitment to exceed legal requirements (which should certainly be respected), companies are trying to raise the standards of environmental protection, social development and respect of human rights. Although in most cases the application of CSR is linked to the business of large companies, today the number of small and medium enterprises and other types of businesses which implement the CSR strategyis rapidly increasing.The CSR strategy is becoming more popular because through its application better business results are achieved and certain competitive advantages are gained. Competitive advantage created by applying CSR is difficult to copy and creates a unique perception of the company that serves for the establishment of its reputation. The basic aim of this study was to determine the level of application of the concept of corporate social responsibility in the company "Draco Ltd.", thus examinining whether the application of CSR affects the competitive advantage of the above company. Empirical studies have been carried out through a formulated questionnaire on a sample of 27 employees. The results suggest that the main hypothesis (There is a positive connection between the level of application of the concept of corporate social responsibility and competitive advantage) cannot be accepted because none of the other hypotheses were fully accepted.