DUE DILIGENCE in the framework of economic security and sustainable development of enterprises

Abstract

The article examines theoretical and practical aspects of the use of Due Diligence in the system of ensuring economic security and sustainable development of enterprises under current transformational changes in the economic environment. It is substantiated that in conditions of growing uncertainty, increasing competitive pressure, market instability, digitalization of business processes, resource constraints, and rising requirements for management transparency, enterprises need comprehensive managerial tools capable of simultaneously providing protection against threats and creating prerequisites for long-term development. It has been determined that Due Diligence should be considered not only as a procedure for examining a company before investment, corporate or partnership agreements, but also as a multifunctional element of the modern management system. The paper summarizes scientific approaches to the interpretation of the essence of Due Diligence and determines its place in the system of strategic enterprise management. It is proved that the use of Due Diligence contributes to the timely identification of financial, legal, personnel, operational, reputational and environmental risks, reduction of information asymmetry, improvement of management decision validity, and strengthening of the overall level of enterprise economic security. It is established that Due Diligence ensures the transition from a reactive model of responding to threats to preventive risk-oriented management. Special attention is paid to the role of Due Diligence in achieving the goals of sustainable enterprise development. The importance of integrating the ESG approach into comprehensive verification procedures is substantiated, which involves assessing environmental, social and governance parameters of enterprise activity. It has been found that the application of Due Diligence contributes to increasing investment attractiveness, strengthening business reputation, improving resource efficiency, developing corporate responsibility, and ensuring long-term resilience of the enterprise business model.

A practical mechanism for integrating Due Diligence into the enterprise management system is proposed, including the stages of identifying key risks, forming an information base, conducting comprehensive analysis, preparing managerial decisions, and monitoring results. It is proved that implementation of such an approach makes it possible to increase enterprise adaptability to crisis phenomena, strengthen competitive positions, and ensure balanced long-term development.