This article constitutes an attempt to propose a concept model for the implementation of Corporate Social Responsibility in small and medium-sized manufacturing enterprises. Poor CSR awareness and implementation across the SME sector is presented and discussed on the basis of research carried out by Polish Agency for Enterprise Development. The article recommends approach where the hierarchy of different levels of Corporate Social Responsibility forms the fundament upon which the company builds its competitive advantage. Attention is also drowned to the development of practices important from the point of view of key stakeholders in order to increase the effectiveness of CSR activities which are seen as instrumental in enhancing the competitiveness of the whole enterprises.