Meaning & Definition

due diligence

Due diligence is the thorough investigation and evaluation conducted before entering into an agreement or contract. In HR, due diligence often pertains to assessing potential employees' backgrounds, qualifications, and suitability for a role. It may also involve evaluating business partners, mergers, or acquisitions. Conducting due diligence helps organizations make informed decisions, mitigate risks, and ensure compliance with legal and ethical standards.