Corporate Social Responsibility (CSR) has become an important tool for business environment to sustain their business competitiveness in Small and Medium Enterprises (SMEs) or Multi-National Companies (MNC) industries. In current business, CSR is an essential part as the standard operating procedure for a company. Currently there is a little knowledge about the typical characteristics, attitudes and preferences of employees who engage in CSR. Therefore, it is important to know the potential barrier of CSR which stimuli the business performance. This study comprises on how CSR strategies aligned with positive changes to the employees and how it impact on the business performance. A structured self-administered questionnaire was distributed to the employers from the manufacturing industry companies from Negeri Sembilan. Descriptive analysis, multiple regression analysis were carried out and Cronbach's alpha coefficients calculated to determine the reliability of the measuring instrument. The empirical results of this study indicate that employee individual development on CSR and employee growth due to CSR activities significantly influence the competitiveness of SMEs.