Because CSR initiatives and voluntary standards are a relatively new area
that is developing quickly and in many directions, the management of
their policy implications is a challenge for many developing countries.
In particular, the potential interactions between soft law and hard law
can be complex, and the value of standards difficult to extract for lack
of monitoring capacity and limited comparability. A number of areas
can benefit from the encouragement of CSR initiatives and the voluntary
dissemination of standards; for example, they can be used to promote
responsible investment and business behaviour (including the avoidance
of corrupt business practices), and they can play an important role in
promoting low-carbon and environmentally sound investment. Care needs
to be taken to avoid these standards becoming undue barriers to trade
and investment flows.