Exercises > Diagnostic exercise: Is responsibility clearly assigned?
This exercise refers to the content of "Problem 5. Unassigned responsibility"; please refer to that page for context and to learn more (part of Module III. Why contracts fail).
Diagnostic exercise: Is responsibility clearly assigned?
Imagine you are a buyer who has set out the following requirements for the supplier. Consider who is responsible for ensuring that the requirement is implemented.
Clause 1:
“The supplier shall conduct appropriate due diligence in its operations.”
Who is responsible on the buyer’s side for ensuring that this requirement is implemented?
- Procurement
- Supplier management
- Legal
- Compliance
- Quality / Technical
- Sustainability
- Unclear
Clause 2:
“The supplier and its products shall comply with all applicable laws.”
Who is responsible on the buyer’s side for ensuring that this requirement is implemented?
- Procurement
- Supplier management
- Legal
- Compliance
- Quality / Technical
- Sustainability
- Unclear
The same exercise can also be approached from the supplier’s perspective:
Who is responsible on the supplier’s side for ensuring that this requirement is implemented?
- Management
- Sales / Account management
- Procurement / Sourcing
- Production / Operations
- Legal / Compliance
- Quality / Technical
- Sustainability
- Unclear
In these examples, the clause appears clear and assigns an obligation to the supplier. Yet, it remains unclear
- who ensures the supplier understands what is required,
- who verifies that it is carried out, and
- what key terms such as “appropriate due diligence” or “comply with all applicable laws” actually mean.
This illustrates the gap at the level of ownership: the supplier has the obligation, but responsibility for ensuring implementation, monitoring, and follow-up remains unclear. At the same time, the issue often extends beyond individual clauses to the contract and process level. Responsibility for ensuring that sustainability-related requirements are consistently defined, aligned across documents, and supported by operational processes may be unclear.