Corporate Social Responsibility (CSR) is the promise by business organizations to behave in a way that is ethically acceptable and at the same time contributing to the economic development and improvement of the living conditions of the employees, the catchment community and the larger society. Small and Medium scale Enterprises (SMEs) can serve as the engine room for corporate social responsibility in developing countries, like Nigeria, since a high proportion of economic activity is generated through them. Hotel industry, belonging to this group has expanded rapidly since the return to democratic rule in 1999 primarily due to government’s interest in tourism development. Such expansion of the hotel industry calls for an enquiry into how socially responsible its activities are.