The Art of Practicing Due Diligence

Posted by Doug on May 16, 2013
Government, Society

homeDue diligence refers to the steps one takes, as an individual or a corporation, to ensure that the people or company with whom one becomes involved with are conducting ethical and moral business transactions. All those involved in any type of business or political venture owes it to themselves to make certain that their own practices do not become at risk due to being connected to those involved in criminal or unethical behavior. There are financial considerations as well, as when a company or a country becomes involved in behavior that is not reputable, other companies or countries will cease to be involved. This is a domino effect. It is simply the way to become knowledgeable about what to look for.

There is an element to the process of due diligence that may strike some as sneaky or too secretive. But just as any rental service will check the credit history of a perspective tenant or customer, so should one check the history of those with whom they are about to conduct business transactions. This does not have to be an undercover operation, the one being “checked out” may be informed of the process, and if their is nothing to hide, this should never be and issue. When conducting investigations that relate to the practice of due diligence, be aware that although people may be one of the best sources of knowledge, they may also be some of the least reliable.

Never rely only on the opinion expressed solely of an individual. One who is skilled in the art of investigation will know that all evidence should be checked and corroborated by other forms of evidence. And it is important to remember that even official court documents do not present the entire background. The best way to observe and assess a situation is to experience as much as is possible of it, first hand. And for those in upper financial management, or those who will inevitability be held responsible, it is never wise to allow decisions to be made by others. The objective collection of evidence is the key to knowing that one did the research, practiced the diligence, and reached the right conclusion based on that evidence alone.

photo by: Bert Kaufmann

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1 Comment to The Art of Practicing Due Diligence

  • Bess says:

    This is a good skill to have if you plan on making any large purchases, like a house or car, or you are planning on investing a business or individual or organization. You work hard for your money so your money should work hard for you.

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