Corporate Due Diligence through Contractual Commitments

About the Project

Corporate due diligence is at the core of responsible business conduct due to an increasing complexity of global supply chains and a changing regulatory framework in Europe and across the globe. The Corporate Sustainability Due Diligence Directive (CSDDD), along with other rules and regulations applicable for specific industries, encourages companies to identify, prevent, mitigate and account for adverse impacts of their activities on human rights and the environment throughout their value chains. The increasing litigation and reputational risks impact business decisions and the choice of suppliers, as companies must navigate these challenges to ensure compliance with due diligence requirements and maintain their market position. Contractual commitments between business partners that contain different obligations for undertaking due diligence serve as one of the legal frameworks that operationalize due diligence in practice.

There is, however, a significant distinction between the regulatory ambition of due diligence frameworks and the actual contractual commitments adopted by companies. Contract clauses including due diligence obligtaions are often generic, lacking specificity for the risks they address, and disconnected from the corporate governance processes they support. These clauses remain limited in their effectiveness regarding enforcement in courts or by arbitral tribunals. This disconnect creates legal and business uncertainty, undermines accountability, and imposes higher costs on companies.

This PhD project examines how organizations design, negotiate, and implement due diligence obligations through their contractual frameworks. It critically assesses corporate contract drafting practices to evaluate the efficiency of due diligence processes, stressing the congruence between contractual obligations and actual corporate behavior. The study researches whether contractual mechanisms sufficiently implement the procedural and substantive requirements of due diligence as delineated by European and international regulatory standards and to what extent it contributes to sustainable supply chain practices.

This study combines doctrinal and empirical methods, primarily assessing the existing contractual practices and the relevant legal frameworks, offering actionable insights for companies aiming to enhance their due diligence frameworks via improved contractual design, and enriching the academic discourse on corporate accountability, contract law, and business and human rights.

Duration: 5 years, depending on progress

Investment: Year 1 € 4,250, Years 2 & 3 € 9,750 per year, Years 4 & 5 and possible subsequent years € 3,500 per year. Fees are subject to change, no rights can be derived from this information, visit our website listed below for the latest fee information.

To apply:

This project is only available within our Self-Funded Part-Time PhD program. Application is only possible via our website, which also provides further details around the application package, which includes:

• Application essay form (our fillable application essay form)
• Title
• Proposed research question
• Research background & rationale
• Methodology
• Suggested supervisors at Nyenrode
• Personal motivation
• Certified copy of your Master's degree or equivalent (in law)
• Copy of corresponding transcript/grade list(s) from your Masters or equivalent
• Curriculum vitae
• Reference letter(s)
• Photo

Contact:

For further information, please visit our website or contact Nyenrode’s PhD School at phd@nyenrode.nl