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Human Rights Due Diligence: Is It Too Risky?

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2010-02

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Mossavar-Rahmani Center for Business and Government
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Sherman, John F. III, and Amy Lehr. “Human Rights Due Diligence: Is It Too Risky?” Corporate Social Responsibility Initiative Working Paper No. 55. Cambridge, MA: John F. Kennedy School of Government, Harvard University, February 2010.

Abstract

Due diligence is a familiar business tool, designed to enable companies to manage risk and reduce liability. It requires companies to ask tough questions about the risks of major transactions, projects, and ongoing operations. The answers may reveal unwelcome facts, requiring the company to take action to avoid or mitigate risks previously unappreciated. Since few people like bad news, companies must often overcome a reluctance to ask questions, the answers to which they may not like, in order to perform the process effectively.

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