Socially responsible business (CSR) is becoming a key concept in the modern business world and provides a framework for integrating social, ecological and ethical aspects in business operations. This graduate thesis investigates the application of CSR in banking in the Republic of Croatia (RO). Analyzing key aspects, challenges and benefits, the research recognizes the increasingly important role of CSR in the banking sector of the Republic of Croatia. Empirical research has shown that banks in the Republic of Croatia are increasingly aware of the impact they have on society and the environment, and are increasingly devoting themselves to integrating sustainable practices into their business strategies. Despite the challenges, the application of CSR has the potential to bring significant benefits to banks, stakeholders and society. The integration of CSR can improve the image of banks, increase the trust of stakeholders and contribute to sustainable growth. In conclusion, this paper confirms that CSR is a key factor in creating the competitive advantage of the banking sector of the Republic of Croatia and encourages further research and practice of CSR in the banking sector of the Republic of Croatia.