Over last decade, entrepreneurial issues have received much attention due to it significant contribution towards the national economy. In Asia-Pacific Economic Cooperation (APEC) economies, Small Medium-Sized Enterprises (SMEs) share of gross domestic product (GDP) range from 20% to 50%. Meanwhile, SMEs in Malaysia are contributing about 32.7% of Malaysia’s GDP (Department of Statistics, Malaysia, 2013). SMEs are regarded as business entities with smaller number of personnel. Therefore, entrepreneurial competencies of the owner/ manager and employees are the critical success factors for its survival and sustainability. Social responsibility is receiving attention in the 21st century due to its’ contribution in business sustainability. This leads to the opportunity to investigate the role of entrepreneurial orientation in SMEs social responsibility specifically the employee’s aspect. This paper aims to study the impact of entrepreneurial orientation in the implementation of internal corporate social responsibility (CSR); and examine the moderating effect of the perceived role of ethics and social responsibility in the implementation of internal CSR. The findings provide some insights pertaining to EO in internal decision strategy and the perception of ethics and social responsibility in internal decision making.