• Be familiar with the normative, management and policy background to corporate sustainability and risk-based due diligence
• Explain key aspects of corporate sustainability and risk-based due diligence as a management process and its direction to identification and management of risks
• Explain differences between risk-based due diligence for corporate sustainability and transactional (financial or legal liability) due diligence
• Be able to analyze demands on corporate sustainability and due diligence and reflect upon their application in various business contexts
• Be able to reflect upon the managerial implications of due diligence demands in regard to corporate sustainability reporting, value chain management and sustainable finance
• Be able to explain the implications for functional managerial tasks of the soft and hard law on corporate sustainability and risk-based due diligence that has been covered in the course

This course aims to equip current or future managers from companies, including SMEs, to understand, work with, apply and comply with corporate sustainability and risk-based due diligence demands in their own organisations and in relations to business relationships.

An important aspect of responsible business conduct, risk-based due diligence related to corporate sustainability is a common element across the current so-called EU ‘tsunami’ of sustainability legislation that is currently being rolled out (including non-financial corporate sustainability reporting, value chain management, sustainable finance and taxonomy, ESG, etc). Several individual countries, such as France, Germany, Norway, the United Kingdom and Australia, have also adopted their own laws requiring business organisations to undertake and/or report on risk-based due diligence policies and practices corporate sustainability. Similar demands exist or are emergent in countries in Asia, the Americas and Africa.

While most of these demands directly mainly apply to larger companies, they are expected to trickle on to the value chain, including SMEs, in Europe as well as in other countries. A basic awareness of corporate sustainability and risk-based due diligence will therefore be an asset for many organizations, even if they are not subject to direct requirements. Moreover, many organisations of all sizes, around the world, apply due diligence for corporate sustainability issued based on leading international soft-law guidance, in particular the United Nations Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, and the United Nations Global Compact.

For this type of due diligence, the risk focus is directed at risks caused by the organization to society. Importantly, this direction differs from that of ‘transactional’ due diligence, such as financial or legal liability due diligence that many companies are already familiar with. This significant difference in risk orientation, too, underscores the relevance for managers and organisations to attain awareness of the relatively new form of due diligence.

Risk-based due diligence for corporate sustainability issues was originally conceived as a management process for companies to identify and manage their harmful impacts on society on an ongoing basis. The original objective was solely on developing and implementing effective management processes for that particular purpose, to assist the organization in understanding about and managing its harmful impacts or risks of such impacts, and ensure that affected people and communities were involved meaningfully in processed to identify risks and develop solutions. Transforming this into legal requirements and quantifiable data (that may easily lead to a singular ‘compliance’ focus) without losing the overall and original focus on sustainable and responsible business conduct, will requires solid knowledge in business organisations. That applies whether organization is subject directly or indirectly to the requirements.

Paying attention to the original objectives and novel legal demands, this course introduces managers in SMEs and other organisations to corporate sustainability and risk-based due diligence in terms of contents, context, demands and implementation.

We will also look at how due diligence with a corporate sustainability focus can support other business functions and be of value to general business practices; how it may support CSR, corporate sustainability and Sustainable Development Goal (SDG) objectives of the organization; and how it relates to a fair and just green transition.

The course applies a combination of teaching forms to support participants’ learning: lectures and guest lectures, cases, group discussions and presentations. We may also use role plays and documentary viewing. Blended learning may occur, mainly if ideal for guest lecturing or exercises. Guest lecturers with practical experience will provide insightful thoughts on their own experience and the value and challenges that corporate sustainability due diligence work can entail.

2-week course cannot be combined with any other course.

If you are a CBS student, please apply for dispensation in your study board in order to sign up for this course. You can find information on your study board at mycbs.dk

As corporate sustainability and risk-based due diligence is a topic that is rapidly evolving due to increasing demands, the literature is also fast evolving. This tentative list is intended to represent types and topics. It will be updated with new literature before course start.  

Schilling-Vacaflor, A. and Lenschow, A. (2023), Hardening foreign corporate accountability through mandatory due diligence in the European Union? New trends and persisting challenges. Regulation & Governance, 17: 677-693. https:/​/​doi.org/​10.1111/​rego.12402

Bright, Claire, and Buhmann, K (2021) Risk-based due diligence, climate change, human rights and the justtransition. Sustainability 13(18), DOI https:/​/​doi.org/​10.3390/​su131810454

Ooms, M. (2022). Risk-based due diligence reporting in global mineral supply chains and the rule through transparency. The Theory and practice of legislation. 10(1), 48–66. https:/​/​search.informit.org/​doi/​10.3316/​agispt.20220326064328

Buhmann, K., Jonas Jonsson & Mette Fisker (2019) Do no harm and do more good too: Connecting Business & and Human Rights theory with Political CSR to help companies identify opportunities for contributing to the SDGs. Corporate Governance: The International Journal of Business in Society, 19(3) 389-403 https:/​/​doi.org/​10.1108/​CG-01-2018-0030

Excerpts from the OECD’s Guidelines for Multinational Enterprises for Responsible Business Conduct, OECD 2023 (available at: https:/​/​www.oecd.org/​publications/​oecd-guidelines-for-multinational-enterprises-on-responsible-business-conduct-81f92357-en.htm), Chapter II (General Principles)

McCorquedale, Robert, Lise Smith, Stuart Neely and Robin Brooks (2017) Human Rights due diligence in law and practice: Good practices and challenges for business enterprises, Business and Human Rights Journal, 195-224, doi:10.1017/bhj.2017.2

Excerpts from the EU Corporate Sustainability Reporting Directive (2022)

Buhmann, Karin (2023)  Confronting challenges to substantive remedy for victims: Opportunities for   OECD NCPs under a due diligence regime involving civil liability. Business and Human Rights Journal (Cambridge Journals), online: doi:10.1017/bhj.2023.9

Excerpts from the OECD (2018). Due Diligence Guidance for Responsible Business Conduct. Paris: OECD

Buhmann, Karin (2023)  Addressing a human rights paradox in the green transition: Guidance for  invested mining operations to benefit local communities. Journal of Cleaner Production,  online: https:/​/​doi.org/​10.1016/​j.jclepro.2023.137903

Johanna Elbel, Stephan Bose O'Reilly, Rok Hrzic (2023) A European Union corporate due diligence act for whom? Considerations about the impact of a European Union due diligence act on artisanal and small-scale cobalt miners in the Democratic Republic of Congo, Resources Policy,

https:/​/​doi.org/​10.1016/​j.resourpol.2022.103241.

Milanez, B. (2021) Climate crisis, critical minerals extraction and their effects in Brazil. POEMAS/Dialogos dos povos. Doi.org/​10.6084/​m9.figshare.16903480

Buhmann, K. (2020) Meaningful stakeholder engagement as an aspect of risk-based due diligence between the economy, politics and law: the constitutive role of the Business & Human Rights regime. In Johnstone, Rachael L. and Anne Merrild (eds) Regulation of Extractive Industries: Community Engagement in the Arctic (Routledge): 78-98

Excerpts from the OECD (2017b). Responsible business conduct for institutional investors: Key considerations for due diligence under the OECD Guidelines for Multinational Enterprises. Paris: OECD

Excerpts from the OECD (2017c). Due Diligence guidance for meaningful stakeholder engagement in the extractive sector. Paris: OECD.

Excerpts from the OECD (2016). Due diligence guidance for responsible supply chains of minerals from conflict-affected and high-risk areas. Third edition. Paris: OECD.

Buhmann, K. (2018) Neglecting the proactive aspect of human rights due diligence? A critical appraisal of the EU’s Non-Financial Reporting Directive as a Pillar One avenue for promoting Pillar Two action. Business and Human Rights Journal 3(1) 23-45, doi:  10.1017/​bhj.2017.24

Buhmann, K. (2018) Analyzing OECD National Contact Point statements for guidance on human rights due diligence: method, findings and outlook, Nordic Journal of Human Rights 36(4) 390-410

Mancini, L., Eslava, N.A., Traverso, M., Mathieux, F. (2021) Assessing impacts of responsible sourcing initiatives for cobalt: Insights from a case study, Resources Policy, 71, https:/​/​doi.org/​10.1016/​j.resourpol.2021.102015 .

Buhmann, K. (2017)  Business and Human Rights: Connecting the managerial and legal aspects. In Patricia Flynn, Tay Keong Tan, Milenko Gudic, eds) Beyond the Bottom Line: Integrating the UN Compact into Management Education , PRME/Greenleaf: 97-108  [to be made available on Canvas]

Buhmann, K. (2017) Connecting Corporate Human Rights Responsibilities and State Obligations   Under the UN Guiding Principles: Communication and Human Rights Due Diligence, in Rendtorff, Jacob Dahl (ed) Perspectives onPhilosophy of Management and Business Ethics (Springer): 281-295 [to be made available on Canvas]