<p>This paper examines the relationship between corporate social responsibility (CSR), competitiveness, and environmental sustainability, with a specific focus on the mediating roles of innovation and industrial structure. It aims to determine the broad and crucial impact of CSR on the economy as a driver of both competitiveness and environmental sustainability. To this end, we employ a panel data analysis covering 20 developed and 20 developing countries over the period 2016–2021, using Ordinary Least Squares (OLS) and Fixed Effects (FE) estimation techniques. Our findings reveal several key insights. First, CSR-based strategies have a positive and significant direct impact on competitiveness. Second, innovation has a strong mediating effect in developed countries, amplifying the CSR-competitiveness link, whereas in developing countries it has a moderating effect. Third, the effect of CSR on environmental sustainability depends on industrial structure. In particular, our results indicate that the effectiveness of CSR strategies in preserving the environment depends on countries’ high industrialization potential. Advanced industrial frameworks enable CSR strategies to significantly improve environmental outcomes. This research contributes to the literature by empirically validating the different channels through which CSR influences macro-level outcomes, highlighting the critical and asymmetric roles of innovation capacity and industrial development. The findings offer nuanced implications for policymakers and corporate strategists seeking to tailor sustainability initiatives to national economic contexts.</p>