Introduction: In the new era every organization wants to build a good reputation to gain a competitive advantage. An innovative idea, a fascinating business plan and good strategies are of little importance if a company does not enjoy considerable reputation in the eyes of the organization's current and potential customers, employees and investors. Employees prefer to work in highly reputed organizations, investors also prefer well-reputed companies. A good corporate reputation demonstrates people's confidence in doing business with the company and helping it even during recession. Some organizations are able to manage their good reputation, but many fail to do so. Charles J. Fombrun, director of the Reputation Institute, developed the "reputation quotient" which was used to measure the reputation of companies. The "Reputation Quotient" measures a company's reputation based on the following six key elements: "emotional appeal, product and services, financial performance, vision and leadership, working environment and social responsibility". Many researchers have developed a positive relationship between corporate social responsibility and the company's corporate reputation. (Fombrun, 2005) states that companies engage in CSR activities due to the extrinsic motivation of their corporate reputation. (Maidnan & Ferrel, 2001) classified organizational CSR practices as follows: legal, ethical, and discretionary (philanthropic). Most companies have adopted the four principles of CSR known as: economic CSR, ethical CSR, legal CSR and philanthropic CSR (Carroll, 2000). The economic responsibility of organizations is gaining importance due to vast global competition. It is not good for good business behavior for an organization to focus on profit. Do Investors in Good Corporate Organizations Get High Returns with…Middle of Paper…Stupidity?”, USA Today Magazine 123 (January), 60–61. Akerlof, G. A. and P. M. Romer: 1993, “Looting: The Underworld economics of for-profit bankruptcy,” Brookings Papers on Economic Activity 2, 1–60. Dowling, G. R. (2008). How the tension between “good” and “bad” profits can devastate a company's reputation. Series on Corporate Strategy, 9(6), 330-335. doi: 10.1108/17515630810923649.Baucus, M. S., & Baucus, D. A. (1997). Academy of Management, 40(1), 129–151. JSTOR. doi: 10.2307/257023.Jarrel, G., & peltzman, S 1985. The impact of product recalls on sellers' wealth : 512-536.Maignan, I.,&Ferrell,OC (2001).Corporate citizenship as a marketing tool. European Journal of Marketing, 35, 457–484.