It also urged the Singapore Government to respect the society's right to engage in debate on such issues.
Of concern to the institute is the Law Society's failure to respond more fully to its draft report on human rights and democracy in Singapore, which it sent to the society for comment earlier this year.
In its final report released yesterday, the institute cited as an example the Law Society's response on the issue of censorship.
The society had replied that the degree of censorship here is a political matter and 'it is not the place of the Law Society to comment on matters which extend beyond the purely legal'.
The institute also expressed concern over recent comments by Attorney-General Walter Woon on human rights.
Professor Woon had spoken out against those he described as fanatical about human rights and seek to prescribe to others what is acceptable and what is not.
The institute said such statements 'fail to recognise the increasing importance of international law, as developed and practised by states'.
Its report also criticised Singapore for failing to meet 'established international standards' on democracy and human rights.
Asked for his response yesterday, Prof Woon said: 'They are entitled to their views, even though they do not understand the nuances of the Singapore system.'
He also reiterated his stand that the debate on where the lines between rights and responsibilities are to be drawn 'is a matter for Singaporeans'.
Mr Michael Hwang, president of the Law Society, told The Straits Times the society will be meeting tomorrow to discuss the institute's report.