The outlook of Corporate Social Responsibility has changed over the years depending upon changing social, legal and business environment. It includes many aspects which come under the fulfilment of CSR like charity, development of educational institutions, hospitals and temples, ethical functioning, respect to human rights and inclusive development which requires the companies to produce qualitative products up to the mark of international standards, adherence of laws relating to the business, etc. Small and Medium Enterprises (SMEs) have played a crucial role in India’s economic growth. Employing close to 40% of India's workforce and contributing 45% to India's manufacturing output, SMEs play a critical role in generating millions of jobs, especially at the low-skill level. The country's 1.3 million SMEs account for 40% of India's total exports. SMEs have a much wider spread; hence a wider reaches across communities. It is estimated that SMEs account for almost 90% of industrial units in India and 40% of value addition in the manufacturing sector. It can thus be said that the Small and Medium Enterprises play a pivotal role in ensuring overall development of a country. But when it comes to the question of shouldering corporate social responsibility (CSR) only a handful of small firms are seen successful. The paper examines the current status of the contributions of SMEs in societal development and benefits of CSR to SMEs.