Due diligence is:
As set out in the UN Guiding Principles, due diligence process includes four core components: identifying 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