The oil and gas industry faces a profound credibility crisis, where its Corporate Social Responsibility (CSR) programmes are often perceived as inadequate compensation for severe environmental degradation, social disruption, and a legacy of liability in host regions. This chapter provides a critical, sector-specific review that moves beyond generic CSR discourse to examine its unique application, failures, and evolving strategic role within this high-impact industry. It begins by analysing the intrinsic link between CSR and environmental sustainability in extractive operations, identifying the acute implementation challenges and institutional barriers prevalent in developing countries. The discussion confronts high-profile CSR failures, legal accountability mechanisms, and the complex issue of long-term environmental liabilities. A core contribution is a structured comparative analysis of corporate approaches across five distinct national contexts: Nigeria, Brazil, China, the Netherlands, and the United States. This analysis distils key lessons on regulatory models, state influence, and judicial activism. Finally, the chapter maps the critical integration of CSR with the energy transition, exploring emerging trends in decarbonisation strategy, sustainable finance (ESG), community-centric just transition principles, and digital innovations for transparency. By synthesising this evidence, the chapter offers a pragmatic framework for transforming CSR from a reputational shield into a core strategic component for operational legitimacy, risk management, and proactive adaptation in a decarbonising global economy.