This thesis covers the concept of socially responsible business, different characteristics of social responsibility and the implementation of the concept in Croatia. The emphasis is on the application of the concept in the management process in the Municipality of Bale - Valle. The global challenges we are increasingly facing have led to the need for change. The market has become increasingly competitive and demanding, and consumers are more informed. Companies are forced to find a new way of doing business for the long-term sustainability of their own companies. Considering the above stated, socially responsible business takes on great importance. Socially responsible business allows organizations to voluntarily conduct business in a way that takes care of all the participants it affects and create mutual benefits. In Croatia, the concept of socially responsible business has not yet taken root compared to the rest of the world. However, there are numerous examples that prove that such a concept is being implemented and that the awareness of its benefits is being raised. In Croatia, state, city and municipal administrations should encourage the implementation, educate the population and serve as a good example to others. Analyzing the business of the municipal administration of the Municipality of Bale, it showed what it actually means for the local population and other participants. The research showed that the Municipality of Bale made progress in the implementation of the principles of socially responsible business and that this progress was recognized by the local community. Also, the Municipality of Bale influenced the increase in the satisfaction of the locals, the standard of living and the immigration of an increasing number of inhabitants.