What is due diligence primarily concerned with?

Due diligence is fundamentally focused on investigating an action or decision before it is executed. This process ensures that all necessary information is gathered and assessed to understand the potential risks and opportunities associated with a particular course of action. In the context of ethical and responsible sourcing, conducting due diligence allows organizations to evaluate suppliers, understand their practices, and verify compliance with ethical standards and regulations. This proactive investigation helps in making informed decisions, reducing the likelihood of negative consequences resulting from poor choices.

In contrast, the other options concern different aspects of business operations. Researching current market trends pertains to understanding the broader economic landscape but does not specifically address the investigation of prior actions. Meeting legal requirements is essential but is often a result of thorough due diligence rather than the primary focus. Monitoring competitors can provide insights into the market but does not involve the in-depth analysis and risk evaluation that due diligence entails.