This background note analyses the institutional and legal implications of the use of soft law instruments on the EU level. It begins with introducing the concept of soft law in EU law. The discussion then follows with defining various categories of Community soft law that have been developed by Community institutions. Further, it elaborates on the competence of Community institutions to adopt soft law acts. After examining the nature and the role of Community soft law, the discussion turns to the issue of simplification and improvement of EU regulation. The background note ends with summoning the role and relevance of soft law with regard to achieving better regulation and good governance in the EU. It also concludes on the urgent necessity to increase the implication of the Parliament in the elaboration process of soft law.