The responsible leadership concept emphasizes the relationship between a firms leader to the internal and external company stakeholders. While existing literature focuses on responsible leadership in multinational enterprises (MNEs), the thesis at hand brings it in the context of small and medium sized enterprises (SMEs). The major goal of this study is to theoretically outline the outcomes of responsible leadership on different levels of analysis. The structural idiosyncrasies inherent in many SMEs like flat hierarchies and a high level of flexibility are argued to intensify the formation of those outcomes. On the individual level of employees, responsible leadership behavior is proposed to positively influence their work-related attitudes and behaviors mediated by psychological empowerment and trust in the leader. On the organi-zational level, responsible leadership has the potential to enhance the level of ethics and inno-vation of the firms culture and finally to an enhanced sustainability performance on the Triple Bottom Line (TBL). On the interorganizational level, responsible leadership can promote the formation of social capital which includes benefits for all concerned parties. Finally, the strong relationships between the focal firm and external organizations can lead to a spill-over of the focal firms sustainability to the external stakeholders sustainability outcomes. Hence, the the-sis proposes that responsible leadership has the potential to increase the sustainability level on the TBL of the whole relational network of the focal firm.