Ask each department in your company to identify how they could support due diligence and to describe their current due diligence efforts. This could involve changes to the code of conduct, supplier selection, procurement procedures, payment terms agreements, due diligence training for employees, the remuneration policy, communication on the company website, etc.

Every company needs a policy that clearly sets out how the company respects human rights, environment and climate. This policy must be written after consultation with internal and external stakeholders and experts. The policy must be approved by senior management and published on the company’s website or another platform. Based on the risk analysis performed in step 2 of due diligence, the policy also states the prioritised risks that the company seeks to address. It also says how the company intends to do this.

Ensure that everyone at the company knows about changes to existing business processes and understands the approach to RBC. This can be achieved by incorporating the policy into regular communication with all employees and by providing training to relevant organisational units. Also inform external parties, such as suppliers and buyers, and emphasise the benefits of excluding human rights violations and environmental damage in joint supply chains.

Organisational alignment between departments usually occurs more naturally in smaller companies. This makes it much easier to embed due diligence into the organisation. When people in different roles and different departments have regular meetings, they can quickly respond to new challenges. These challenges could relate to emerging risks, such as human rights violations in the tomato sector or child labour in electronic factories. They could also be about new legislation that the company must comply with.

Ensure that everyone involved in the due diligence cycle knows precisely what they should do, what they will be evaluated on, and with whom they must collaborate to implement due diligence effectively. Almost everyone in the company will play a part. Buyers select suppliers and have direct contact with them about social and environmental issues. The sales department is aware of buyer expectations. It can mitigate them or convert them into sustainable actions at the company. Legal affairs draws up contracts and codes of conduct. These documents can set out mutual expectations between you and suppliers on human rights and the environment. The finance department must prepare enough budget to implement plans of action and other measures. The HR department ensures all staff members receive adequate training and know what is expected of them. The logistics department calculates whether other transport options could be less polluting. And so on. If your company has a sustainability department, this department will have a central role in coordinating and connecting due diligence efforts. Lastly, the executive board plays a crucial role. Their support and engagement is required to properly implement due diligence throughout the company.

When drafting a code of conduct, it is essential to consider suppliers’ interests as well. An excellent example of implementing this is a buyer-supplier mutual code of conduct, also known as a ‘2-way code of conduct’. This results in a sustainable, trust-based and stable relationship with your supplier. You can find a good example on pages 30 and 31 of the ‘Guide to buying responsibly’ (ETI).

To understand whether the measures taken are effective, it is important to collect information. Where possible, do this in your current information systems. It is crucial to set measurable goals to monitor your progress on RBC policy. That could be an agreed percentage of certified products, a specific percentage of suppliers signing the code of conduct or reducing your carbon footprint by a certain percentage. Formulating objectives using the SMART criteria (Specific, Measurable, Actionable, Relevant and Time-bound) supports progress monitoring. This information helps the board to monitor progress and make necessary adjustments on time.

As explained before, due diligence is a continuous, reactive and flexible process. That is why it is important to have a solid RBC policy and then make a good attempt to address risks. Remember: it is impossible to achieve perfection from day one. You can always change your policy and should do so continuously. These changes could be based on the knowledge gained from implementation and new developments.

• European Model Clauses provides examples of RBC contract clauses