Social Entrepreneurship Education (SEE) has the potential to benefit society by reducing poverty and advancing social, economic, and environmental sustainability. This study examines how SEE enhances students’ perception of Corporate Social Responsibility (CSR) and leads to more sustainable behaviour among students. Additionally, this study explores how the Institutional Environment strengthens the connection between SEE and perceived CSR, both crucial for cultivating sustainable behaviour. The theory of planned behaviour serves as the foundation for this study. A questionnaire-based survey was completed by purposively selected 271 undergraduates from private universities in Lahore, Pakistan. The findings indicate that social entrepreneurial education positively impacts the students’ perception of CSR and sustainable behaviour. Additionally, the study found that CSR plays a mediating role, which is statistically significant. The findings also suggest that the institutional environment acts as a moderator. This study contributes significantly to the existing knowledge and is a valuable guide for educational institutions to develop policies for education programs based on social entrepreneurship courses and training.