How Can You Perform Due Diligence Correctly and Share Best Practice Whilst Still Ensuring your Organisation remains Competitive?

In light of recent media focus in respect of potential failings in due diligence in fast fashion supply chains, it is more important than ever that procurement professionals share best practice to support the eradication of modern slavery.

The process of sharing due diligence techniques is greater than the success of any one company. Knowledge sharing cross-company, with industry peers across a spectrum of organisations is critical to the success of the process on a global scale.

It is vital we recognise that due diligence is not a tool we should harbour to ourselves, to ensure our organisation is best in class, but instead, we should support even our most emulous competitor to improve their process for the good of humanity as a whole.

So what can we share, without fear of breaching the confidentiality of our own organisation?

Certainly, the methodologies we’re using, the tools and our process, how regularly we’re conducting the due diligence and where we feel there might be room for improvement. In volunteering this information we may even gain benefits; a peer might draw our attention to gaps in our own process which could have been a blind spot for us.

Whilst positive reviews on tools we use would be encouraged, it would be ill-advised to discuss costs of tools, as this would clearly be confidential information.

What methodologies should we look to use in order to share relevant, essential information?

The way in which we share this information is going to have a major impact on how it is received and the use we can make of it. Unsolicited emails could be perceived as condescending and ill-received, negating any potential benefits of sharing.

Think about your audience, who would benefit most from communication?

For example, someone purchasing in a supply chain ending in agriculture won’t necessarily have the same due diligence needs as someone purchasing software. But surely due diligence is not subjective? Surely it's always applicable, whatever process you follow and whichever tools you use are presumably transferable to any industry?

Yes - but - no.

You might need to ask more specific questions if sourcing rare earth metals for electronics than if you were procuring a cleaning service. Yet both have significant risks when it comes to modern slavery. But there will still be benefit in sharing any information on your process and tools, with anyone willing to listen.

Whether it be through conversations, forums, CIPS events, or general discussions with anyone you come into contact with on a professional level, now is the time to be open and transparent about the way you conduct your due diligence. Now is the time to share, and not feel that you would lose a competitive advantage in doing so.

Whether you might be in the public or private sector, healthcare or agriculture- we can all learn from each other and in doing so help fight the fight against accidental purchase from organisations which may pose a risk. 

I urge all companies to publish their methodologies online, and strongly recommend you make the same proposal to your own organisation.

In a similar way we would proudly present our Modern Slavery statements online, why not appendix the tools, methodology and process for due diligence activity?

Perhaps this should be the norm, rather than the exception?

Perhaps we should make this an expectation of best in class?

It is not a subject that we should regard as something we need to keep secret, to ensure our company out does our competitors.

Perhaps if we all push to make sharing such information, the ‘world class’ standard will be raised. We can learn from each other and we can look to support each other in our fight against modern slavery. We need to make this change, we need to progress, we need to not be so secretive about a subject that is so imperative that we discuss and share to enable us together to implement the best practices, world class- and all have access to all the required information in order for us to wholly be best in class.

There is no excuse, no reason, no plausible deniability to allow for substandard due diligence. We have obligations to humanity and the environment to ensure we carry out not only basic but, at this specific time, absolutely need to be the best of the best. And this is NOT something we should be keeping to ourselves. We should be sharing the information, if not only from an ethical standpoint, to absolutely 100% ensure everyone is practising best in class due diligence.

As Malcolm Harrison said in the recent Procurement Power List 2020 Webinar, “This is one thing organisations should collaborate more on, it’s not about competition.”

Sharing our information and process is the only way we will ever be able to even begin to think about making steps in eradication of modern slavery. It is our responsibility to share this information, it is necessary, it is vital, if we are ever going to become a slave free world. This, this is our first step.

Disclaimer: This represents the individual and independent insights of Ngaire-Elizabeth Guzzetti.

Special thanks to: Hollie Clemence, Malcolm Harrison, Michael Lewis and David Pratt for their support.