Foreign Direct Investment (FDI) have made significant contribution to the growth of developing countries. However, its recent trajectory has shown potential threats to the welfare of local communities. Numerous instances have been documented where large corporations have committed various infractions, such as tax evasion, corruption, environmental degradation, and the forceful eviction of local farmers for land acquisition. The lack of enforceable human rights obligations on investors, coupled with the inability of states to present claims/counterclaims when investors violate human rights, and the reluctance of arbitral tribunals in consideration of such claims/counterclaims, has led to asymmetry in international investment law. Nonetheless, recent advancements in this area are beginning to address these issues. Treaty reforms now impose investors’ substantive obligations, and there is a noticeable shifts in arbitrators’ views on investor responsibility, along with a growing acceptance of state counterclaims. Updates to national legal systems worldwide are also contributing to this shift. These changes are gradually balancing the scales, providing states with the flexibility to adopt and implement regulatory measures that protect the environment, public health, cultural preservation, and other crucial matters.