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EDDB 604: Due Diligence for Business Report a Broken Link

Course Outline

Week 1: Types of Business Risks That Need to Be Investigated and Their Sources
Week 2: Corruption Risks, Legal Risks, Reputational Risks
Week 3: Determining the Purpose of the Due Diligence is Crucial to Deciding How and What to Investigate
Week 4: How to Investigate Risks – continued
Week 5: Corporate Governance and Due Diligence
Week 6: Due Diligence as It Relates to Mergers & Acquisitions Transactions
Week 7: Using the Results of the Due Diligence Process
Week 8: Tools That Can Reduce Risk

Lesson 1

Please note: Students may access the SSRN readings without registration by scrolling down on the registration page and clicking "Download without registration" on the bottom right.
Reading 1a: Export Development Canada. (2015). Managing political risk: A guide for Canadian businesses that invest in or export to emerging markets. http://www.iberglobal.com/files/2016-2/managing-political-risk.pdf
Reading 1b: Franklin, A. (2017, April 1). So you want to be a compliance or risk assessment officer? https://dx.doi.org/10.2139/ssrn.2943218
Reading 2: The Economist Intelligence Unit. (2019). How to navigate corporate risk [PDF file]. https://pages.eiu.com/rs/753-RIQ-438/images/How-to-navigate-corporate-risk.pdf
Reading 3: Steele. (2018). Incorporating CSR into due diligence programs. https://steeleglobal.com/incorporating-csr-into-due-diligence-programs/
Reading 4: Siskinds (2017, February 9). What is environmental due diligence? [blog post]. https://www.siskinds.com/environmental-due-diligence/  
Reading 5a: Pike, S. A. (2019, September 25). Introduction to modern slavery issues in businesses and supply chains in Canada: Insights for Canadian CEOs and directors addressing modern slavery in their businesses and supply chains. Gowling WLG. https://gowlingwlg.com/en/insights-resources/articles/2019/introduction-to-modern-slavery-issues-in-canada/  
Reading 5b: Pike, S. A. (2019, November 12). Modern slavery in businesses and supply chains in Canada—Part two. Gowling WLG. https://gowlingwlg.com/en/insights-resources/articles/2019/modern-slavery-issues-in-canada-part-two/
Reading 6: Institute for Human Rights and Business. (2019, December). Building a movement: Reflections on the history and future of business and human rights. https://www.ihrb.org/uploads/reports/Building_a_Movement_Reflections_on_the_History_and_Future_of_Business_and_Human_Rights_-_IHRB.pdf
Reading 7: DiMauro, J. (2020, March 3). Just how much pressure are compliance officers under? The FCPA Blog. https://fcpablog.com/2020/03/03/just-how-much-pressure-are-compliance-officers-under/
Reading 8: Chipman, J. (2016). Why Your Company Needs a Foreign Policy. Harvard Business Review, 94(9), 36–134.

Lesson 2

Reading 9: Bathgate, B., Pinsonnault, G., Campbell, N., & Cullen, T. (2019). Anti-Corruption. McMillan [PDF file]. https://mcmillan.ca/wp-content/uploads/2020/07/212621_Chambers-Anti-Corruption-2019-Guide-1.pdf
Reading 10: Deloitte LLP. (2014). Corruption in Canada: Definitions and enforcement [PDF file]. http://publications.gc.ca/collections/collection_2015/sp-ps/PS18-10-2014-eng.pdf
Reading 11: Franklin, A. (2017, June 5). Rule of law: Foreign investment and development. http://dx.doi.org/10.2139/ssrn.2981399
Reading 12: The Economist Intelligence Unit. (2019). Measuring the enabling environment for public-private partnerships in infrastructure [interactive website]. https://infrascope.eiu.com
Reading 13: Franklin, A. (2019, November 12). Reputational risks: A practical perspective. https://dx.doi.org/10.2139/ssrn.3479349
Reading 14: Hogan Lovells. (2016). Steering the course: Navigating bribery and corruption risk [PDF file]. https://stc.hoganlovellsabc.com/_uploads/downloads/4268558-Steering_the_Course-Navigating_bribery_and_corruption_risk.pdf

Lesson 3

Reading 15: Steele. (n.d.). Third-party risk issues for your board to see [PDF file]. https://steeleglobal.com/wp-content/uploads/2019/06/Third-Party-Risk-Issues-for-Your-Board-to-See.pdf  
Reading 16: Steele. (2018, May 3). Due diligence in practice, not on paper [blog post]. https://steeleglobal.com/due-diligence-in-practice-not-on-paper/  
Reading 17: Rosen, A. (2019, August 23). Worlds apart: Supreme Court rulings vs. Canadian reporting standards. Canadian Accountant. http://canadian-accountant.com/content/al-rosen/worlds-apart-supreme-court-rulings-vs-canadian-reporting-standards
Reading 18: Rosen, A. (2018, October 11). It’s time to get serious about the future of Canadian auditing. Canadian Accountant. http://www.canadian-accountant.com/content/business/it-s-time-to-get-serious-about-the-future-of-canadian-auditing  
Reading 19: Rosen A. (2018, January 25). SCC abandons investors, part II: The purpose of financial reporting. Canadian Accountant. http://www.canadian-accountant.com/content/business/scc-abandons-investors-financial-reporting  
Reading 20: Franklin, A. (2019, November 9). Ethical investment funds—Shedding some light on the reality vs rhetoric. https://dx.doi.org/10.2139/ssrn.3484261
Reading 21: Adkins, T. (2019, March 10). Financial statement manipulation: How to spot the signs when considering a stock. Investopedia. https://www.investopedia.com/articles/fundamental-analysis/financial-statement-manipulation.asp

Lesson 4

Reading 22: Global Business Risk Management. (2019). Due diligence review for a mining project [MS Word file].
Reading 23: Shift (2015, March). Human rights due diligence in high risk circumstances: Practical strategies for businesses [PDF file]. https://shiftproject.org/wp-content/uploads/2015/03/Shift_HRDDinhighriskcircumstances_Mar2015.pdf

Lesson 5

Reading 24: Cossin, D., & Hongze Lu, A. (n.d.). The four tiers of conflict of interest faced by board directors. https://www.imd.org/research-knowledge/articles/the-four-tiers-of-conflict-of-interest-faced-by-board-directors/
Reading 25: Bekefi, T., & Epstein, M. J. (2006). Management accounting guideline: Integrating social and political risk into management decision-making [PDF file]. Mississauga, ON: The Society of Management Accountants of Canada and the American Institute of Certified Public Accountants. http://www.cimaglobal.com/Documents/ImportedDocuments/Tech_MAG_Integrating_Social_Political_Risks_Sept06.pdf
Reading 26: Fox, J., & Lorsch, J. W. (2012). What good are shareholders? Harvard Business Review, 90(7/8), 48–57.

Lesson 6

Reading 27: Franklin, A. (2017, March 17). Due diligence in mergers and acquisitions with international components. http://dx.doi.org/10.2139/ssrn.2933873
Reading 28: Franklin, A. (2018, May 3). Twenty valuation issues related to international M & A transactions. http://dx.doi.org/10.2139/ssrn.3171802
Reading 29: Bradt, G. (2015, June 29). The root cause of every merger's success or failure: Culture. Forbes. https://www.forbes.com/sites/georgebradt/2015/06/29/the-root-cause-of-every-mergers-success-or-failure-culture/#2d73d471d305  
Reading 30: U.S. Department of Justice. (2012, November 14). Successor liability (pp. 27-33). In A resource guide to the U.S. Foreign Corrupt Practices Act. https://www.justice.gov/sites/default/files/criminal-fraud/legacy/2015/01/16/guide.pdf
Reading 31: Triponel, A. (2016, January). What do human rights have to do with mergers and acquisitions? https://www.shiftproject.org/resources/publications/what-do-human-rights-have-to-do-with-mergers-and-acquisitions/
Reading 32: Buffett, W. E. (1998). Chapter 4 Mergers and Acquisitions (pp. 137-157). In The essays of Warren Buffett: Lessons for corporate America. L. A. Cunningham (Ed.). http://csinvesting.org/wp-content/uploads/2015/05/Essays-of-Warren-Buffett-_-Lessons-for-Corporate-America_Cunningham.pdf
Reading 33: Hogan Lovells. (2017). Steering the course: Navigating bribery and corruption risk in M&A. https://stc.hoganlovellsabc.com/_uploads/downloads/11799_D3_Steeringthecourse-Part3_NL_V8.pdf
Reading 34: Wouters, N., & Hillebrand Pohl, J. (2020, June 30). The use of insurance to manage the risk of investment screening. Dentons Insights. https://www.dentons.com/en/insights/articles/2020/june/30/the-use-of-insurance-to-manage-the-risk-of-investment-screening

Lesson 7

Reading 35: Steele. (2017). Safeguarding your company value in an age of reputational risk. https://steeleglobal.com/wp-content/uploads/2017/05/Safeguarding-your-Company-Value-in-an-Age-of-Reputational-Risk.pdf
Reading 36: Steele. (2018). Incorporating CSR into due diligence programs. https://steeleglobal.com/incorporating-csr-into-due-diligence-programs/

Reading 36 was assigned in Week 1 (as Reading 3). Please review it as we look at those concepts in more depth.
Reading 37: Murphy, M. (2019, November 10). Boeing’s CEO is giving up his bonus: Three reasons why it feels distasteful. Forbes. https://www.forbes.com/sites/markmurphy/2019/11/10/boeings-ceo-is-giving-up-his-bonus-but-here-are-three-reasons-why-it-feels-distasteful/#10f81f2367b5  
Reading 38: Saxena, S. B. (2019, October 23). Labor, global supply chains, and the garment industry in South Asia—Bangladesh after Rana Plaza. Institute For Human Rights and Business. https://www.ihrb.org/other/high-risk-zones/commentary-book-bangladesh-after-rana-plaza

Lesson 8

Reading 39: Franklin, A. (2018, April 22). Political risk insurance—A primer for foreign investors. http://dx.doi.org/10.2139/ssrn.3166703
Reading 40: Roberts, I., & Kilner, V. (2014, June 2). Protection against sovereign risk: Political risk insurance vs bilateral investment treaties. https://www.asiainsurancereview.com/Magazine/ReadMagazineArticle?aid=35131
Reading 41: Franklin, A. (2017, June 19). Business reasons for developing a robust anti-corruption program. http://dx.doi.org/10.2139/ssrn.2988322
Reading 42: Franklin, A. (2016, April 14). Effective programmes to combat corruption vs programmes intended primarily to satisfy SEC, DOJ or SFO. https://dx.doi.org/10.2139/ssrn.2761692
Reading 43: Schwellenbach, N. (2019, October 23). How corporate lawbreakers get a leg up at the Justice Department. https://www.pogo.org/investigation/2019/10/how-corporate-lawbreakers-get-a-leg-up-at-the-justice-department/

Supplementary Readings

Week 4 Supplementary Readings
Ethical Trading Initiative (2016, May 19). Human rights due diligence framework [PDF file]. https://www.ethicaltrade.org/sites/default/files/shared_resources/eti_human_rights_due_diligence_framework.pdf
Week 5 Supplementary Readings
Buffett, W. E. (1998). The essays of Warren Buffett: Lessons for corporate America. L. A. Cunningham (Ed.). http://csinvesting.org/wp-content/uploads/2015/05/Essays-of-Warren-Buffett-_-Lessons-for-Corporate-America_Cunningham.pdf
Campbell, A., Whitehead, J., & Finkelstein, S. (2009). Why good leaders make bad decisions. Harvard Business Review, 87(2), 60–66. http://0-search.ebscohost.com.aupac.lib.athabascau.ca/login.aspx?direct=true&AuthType=url,ip,uid&db=bth&AN=36195784&site=ehost-live