With the rapid development of the economy and the introduction of environmental policies, increasingly serious environmental problems are getting more and more attention. Studying how to motivate enterprises to actively fulfil their environmental responsibilities and establish the concept of green development is the key to achieving sustainable development. This paper selects a sample of large steel enterprises of the China Iron and Steel Industry Association from 2008 to 2017, and explores the effect of environmental responsibility of industrial enterprises on corporate economic performance and the transmission mechanism based on the perspective of the mediating effect of green reputation. The results show that corporate environmental responsibility (CER) has a significant positive effect on corporate performance. Green reputation has a significant mediating effect in the impact of corporate environmental responsibility on economic performance. In addition, the differences in the mediating effects of green reputation between corporate environmental responsibility and economic performance are explored in depth from the perspectives of regional heterogeneity and ownership heterogeneity. Finally, based on the findings, the paper suggests that corporate policy makers should balance environmental and economic benefits in their management, and promote the establishment of management systems and production methods that use environmental protection as a value leader and growth driver.