This study examines the relationship between institutional investment (II) and corporate social performance (CSP) of public listed companies (PLCs) in Bangladesh using cross-sectional data. The sample includes 152 firms as listed in Dhaka Stock Exchange (DSE). Structured questionnaires, annual reports, CSR reports, websites, regulatory notifications, and newspaper articles were used for data collection.The results of the study indicate that CSP has a positive but insignificant relationship with institutional investment in Bangladesh. This would also improve the investment climate by encouraging the institutional investors to make their investment decisions based on long-term sustainability. To the best of our knowledge, the paper investigates, for the first time, the linkage between institutional investment and CSP in the context of a developing country like Bangladesh. In the process, this paper attempts to develop the first known comprehensive CSP Index in the context of Bangladesh.Based on the review of relevant literatures and theoretical understanding, CSP can be viewed as a risk-reducing mechanism. Adding with the efficient market theory assumption that risk averse investors will choose the company having less risk given the same expected return, the following testable hypothesis can be proposed:Hypothesis: Better corporate social performance leads to increased institutional investment 4 S. U. Ahmed et al.

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