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This research departs from the urgency of implementing Corporate Social Responsibility (CSR) in the palm oil industry sector in Riau Province, which serves as the epicenter of national palm oil production while simultaneously facing complex social, economic, and environmental issues. This study identifies three main pillars of CSR implementation, namely (i) local economic empowerment through support for MSMEs, nucleus–plasma partnerships, and entrepreneurship programs, (ii) provision of basic services and development of social infrastructure including education, healthcare, and village public facilities, and (iii) environmental management and sustainable supply chains emphasizing forest fire control, peatland conservation, and compliance with global sustainability standards. At the regulatory level, the implementation of CSR in the palm oil sector in Riau is governed through three levels of regulation: the national legal framework (Law No. 40/2007, Environmental Law, and derivative regulations concerning social and environmental responsibility), international standards and global market mechanisms (ISPO, RSPO, NDPE, and ESG investor indicators), and regional policies in the form of CSR forums, regional regulations, and development priority maps based on local needs. However, the analysis reveals a significant gap between compliance and actual implementation. Although regulations are formally available, practices in the field often remain short-term philanthropic in nature and are not yet fully integrated with regional sustainable development agendas. This study recommends that the Regional Government (Pemda) of Riau strengthen the institutional capacity of the Regional CSR Forum, integrate CSR programs into development planning documents (RPJMD), and tighten monitoring and evaluation mechanisms based on transparent and participatory performance indicators. Thus, CSR should not merely function as a legal obligation, but as a strategic instrument to enhance the competitiveness of the palm oil industry while addressing local community needs and maintaining environmental sustainability.