The diploma thesis covers the concept of socially responsible business in cities in the Republic of Croatia. Corporate social responsibility is gaining more and more importance every day and is becoming more applicable in an increasing number of associations, non-profit and for-profit organizations, city administrations, etc. Turning around, we notice that the trend of corporate social responsibility is spreading around the world and in Croatia . In today's business world in which competition plays a very big role, the sensitivity and information of consumers, ie clients, which leave a significant impact on anyone's business success, has increased. Being socially responsible does not mean doing one good deed and thus bragging and standing out, but it is a different and better way of doing business that is implemented through all levels of management and throughout the business for the benefit of all actors. This way of doing business is voluntary for everyone and profitable in the long run precisely because the goals and the business itself do not revolve around profit maximization but around social and ethical values. By including this way of doing business, the company ensures a good reputation, financial stability and a longer-term future. If city administrations, participated in the analysis of measuring and monitoring the state of socially responsible business, much more data could be obtained on the analysis of the state and characteristics of the new concept. The situation in Croatia is not bad, but city administrations should invest much more time and effort in promoting, promoting and implementing socially responsible business in order to be as close as possible to European trends in the future. The analysis of examples of good practice has shown that respect for the principles of corporate social responsibility contributes to a better quality of life and a better reputation. Also, the research showed that the population wants to be informed and instructed in the work of city administrations. The idea of this thesis is to explore how much a small Istrian town (Umag) manages to monitor and implement the values of socially responsible business.