This study investigated the investment decisions of Saudi corporations in the corporate social responsibility (CSR) context and examined the moderated role of corporate governance quality. The panel dataset consisted of 82 firms and 328 Saudi firm-year observations listed on the Saudi Stock Exchange over the period of 2018–2021, and feasible generalized least squares (FGLS) regression was used for model estimation. The empirical findings indicated that companies with higher levels of CSR reporting invested more effectively than companies with lower CSR reporting levels. The empirical analysis suggested two main findings: (i) corporate social responsibility (CSR) reporting has a significant effect on investment decisions and (ii) this relationship depends on corporate governance practices. This research presents new evidence that improves the discussion around CSR involvement and corporate investment decision making in the emerging market of Saudi Arabia. Furthermore, it presents practical and managerial implications for policymakers and standard setters who are interested in ameliorating sustainable development in Saudi Arabia under the Kingdom Vision of 2030. Additionally, this work provides suggestions for firm management regarding the importance of CSR commitment and corporate governance mechanisms in enhancing corporate investment decisions. Finally, the outcomes of this research are beneficial for investors, as they represent the factors to be considered before making investment decisions.