What is due diligence in the supply chain?

Due diligence is:

As set out in the UN Guiding Principles, due diligence process includes four core componentsidentifying and assessing actual or potential adverse impacts that the company may cause, contribute to, or be directly linked to; taking appropriate action and integrating findings from impact assessments across relevant company processes; tracking the effectiveness of measures in order to assess whether they are working; and communicating with stakeholders about how impacts are being addressed and showing stakeholders that there are adequate policies and processes in place.


Benefits for Due Diligence for Responsible Business Conduct:


Source: Quantifying the Costs, Benefits and Risks of Due Diligence for Responsible Business Conduct: Framework and Assessment Tool for Companies, OECD &  University of Columbia’s School of International Public Affairs (SIPA), 2016


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