Corporate social responsibility (CSR) facilitates increased innovation and enhanced reputation and business performance. Small and medium-sized enterprises are commonly acknowledged to be a driver of economic growth, so these firms’ CSR and the competitive advantages it generates are of great interest. This study examined whether corporate managers’ positive predisposition toward CSR initiatives explains their companies’ level of innovation, achieved performance, competitive success, and reputation. Structural equation modeling was used to analyze a sample of 109 companies operating in Spain’s Autonomous Community of Extremadura. The results confirm that companies generally have a favorable orientation toward CSR and this strategy’s benefits include developing and improving firms’ reputation.