Abstract
This study looks into how Carroll’s concepts of corporate social responsibility (CSR) and environmental responsibility affect the performance of SMEs in Iran. By examining 483 questionnaires collected from Iranian small and medium-sized businesses, the research’s conclusions were drawn. The conceptual model was examined using structural equation modeling. The results show that two dimensions of CSR including economic and legal aspects directly and significantly affect firm performance. This study specifically evaluates how each aspect of corporate social responsibility affects firm performance. Due to the growing significance of environmental challenges, a new dimension - environmental responsibility has been added to Carroll’s suggested paradigm in this research. The findings of this study provide managers with a better understanding of CSR and its effects on business performance. This study demonstrates to managers how concentrating on specific CSR elements can affect business performance.