|Tool||An example “Know your WSI participants” checklist and other sources of information relating to due diligence investigations.|
|Related Key Activities||Analyze WSI participant records and incentives.|
|Questions Addressed||How can the WSI understand the track record of its potential participants to ensure the integrity of the initiative?|
|Purpose||A proper due diligence process will help WSI participants identify potential past unethical behavior by any participant, in order to determine proper next steps and avoid conflicts:
|Possible Users||WSI initiator, might be a single organization or a small group of organizations that are providing financial support to a WSI or are involved in its development, including donor agencies planning to support a WSI.|
|Level of Effort||From simple checklist to comprehensive background research by an independent party.|
|WSI Phase||1: Incubation and Initial Analysis, completed in 2: Formalization.|
Due diligence refers to the care a reasonable and prudent party should take before entering into an agreement or transaction with another party — whether they are NGOs, government, or private companies. It involves a systematic collection and analysis of information on how a particular organization is managed or conducts its business. A due diligence investigation reveals whether a potential participant in a WSI commits to professional and ethical business practices, and uncovers the risks and opportunities that come along with involving this participant. A due diligence assessment will be useful for the WSI initiators while scoping prospective participants in order to assess whether that organization is fit to assume a specific role in the WSI.