This paper analyzes how Small and Medium-Sized Enterprises, SMEs in the hotel industry implement strategic Corporate Social Responsibility, CSR through the lenses of leadership, decision-making, and communication. Additionally, this research explores how the implementation differs between small and large hotel companies. To answer these questions, researchers used a qualitative approach by conducting 15 semi-structured interviews with eight SMEs and seven large hotel companies. The Interpretative Phenomenological Analysis, IPA method was applied to analyze the gathered data. Research results demonstrate that hotel leaders in SMEs create a sustainability vision and lead the transition within their hotels. Leaders are mainly in charge of strategic decisions which are cascaded to all departments for operationalization. Moreover, dynamics between formal procedures shaping operational processes and informal organizational culture were identified. While formal elements shape goals and performance-tracking within organizations, informal elements ensure employees are aligned and committed to the sustainability vision. Formal documents and work procedures serve as guidelines for employees, but the informal aspect of leadership related to inspiring, engaging, and motivating employees is of even greater importance. Leaders motivate and engage employees by granting a high degree of autonomy in their work, allowing for mistakes to happen, valuing their efforts and contributions, and overall, fostering an open, trusting, and supportive organizational culture in their hotels. In conclusion, to successfully implement strategic CSR, a sustainable way of thinking must be developed that will ensure that all decisions and daily activities are in line with the sustainability vision.