Due diligence is more than an audit of services or products; it’s a legal concept that arises when a duty of care exists. This duty can be by directors to shareholders, management to employees, parents to children or by manufacturers to the public.
The importance of due diligence is how we — as citizens, institutions and corporations — deal fairly with each other. It is the basis of trust without which an open, civilised society cannot prosper.
Essentially it asks the question: If you were in the same position, how would you expect to be treated?
Of course, this is hardly a novel idea. Treating others the way we want to be treated has been considered throughout recorded history.
What is new is its absorption into the legislative and judicial process within the last 100 years.
Due diligence has become endemic in Australian legislation. And it seems this process is set to increase in Australia with a plethora of Royal Commissions.
Parliamentarians and judges seem to have decided that due diligence is universal in its application and creates a moral justification for action.
This means that failure to act demands sanction against the failed decision maker.
This due diligence focus also means better governance for fiduciary, project, environmental and safety risk within an adversarial legal system.
But what exactly do we mean by due diligence? And how do you engineer it? And why do Directors, Government Ministers and other senior decision makers need to be making diligent decisions accordingly?
This is what we detail in our 296 page Engineering Due Diligence Text. First published in 1996 and updated every year or two, the latest edition, our eleventh, has been repurposed to reflect this increased focus on due diligence in Australian and New Zealand legislation.
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Please note, a tax invoice will be sent with the publication via mail.