What is Due Diligence?
Due Diligence is a comprehensive, critical investigation or audit of a potential investment, product, business, or partnership. It involves examining financial records, business operations, legal obligations, and other critical details to assess risks and opportunities.
In the realm of supply chain traceability, due diligence is the process companies undertake to ensure their suppliers and partners comply with legal, environmental, and ethical standards. This includes verifying the origins of materials, ensuring labour practices are fair, and assessing environmental impact. Due diligence helps companies manage risks, protect their reputation, and ensure responsible sourcing and compliance with regulatory requirements.
Related terms
Deforestation Legislation
Deforestation Legislation encompasses the body of laws enacted by governments to control, limit, or entirely prevent deforestation globally.
Accountability
Accountability ensures that companies can verify the integrity of their supply chains, uphold compliance with environmental and social standards, and respond to any discrepancies or issues with honesty and corrective action.
Due Diligence
In supply chain traceability, due diligence is the process companies undertake to ensure their suppliers and partners comply with legal, environmental, and ethical standards.