How to perform corporate due diligence
Due Diligence is the hot new topic in prospect development, and for good reason. Across the news, stories are being told of organizations accepting dirty money or partnering with unsavory characters. These stories are important because the legitimacy of your organization is on the line when exposed in this way. So, how do you prevent your organization by falling into this trap? That’s where due diligence can come into play.
Corporate due diligence presents a particular challenge to organizations, many of whom could be unfamiliar with due diligence best practices in the first place. So the question becomes; how do you perform corporate due diligence?
Identify the moral compass of your organization. This guiding philosophy will help you determine what areas your organization cares most about and would never compromise itself on.
Think in terms of scope. Crimes of a CEO should weigh more for a due diligence check. Company leadership should be held to a higher standard. Are the issues you find isolated rotten apples, or is the whole barrel ruined? Thinking this way will help you determine how serious the transgression is.
Rely on precedent. This can be difficult to determine when first starting out, but over time, how your organization responded to situations in the past will help inform you on how you should act in the present.
Approaching corporate due diligence in this way can ensure your organization doesn’t succumb to the common pitfalls of the day. By performing corporate due diligence you can ensure your organization is in good standing with the public and has a moral high ground they can project to donors and the communities in which they serve.
