Abstract: The contemporary development of the European Union's internal market is increasingly characterized by demands to align economic activities with the principles of sustainable business and the protection of fundamental rights. In this context, due diligence is evolving as a risk management instrument stemming from corporate operations. The purpose of this paper is to present the significance of due diligence within sustainable business, while its aim is to analyze the content and scope of due diligence obligations under Directive (EU) 2024/1760 and their effects on corporate liability and the functioning of the European Union's internal market. The paper applies the method of legal source analysis and the descriptive method, along with an analytical review of relevant professional and scientific literature. Special attention is paid to the obligations of identifying, preventing, mitigating, and remedying adverse impacts on human rights and the environment in a company's own operations, the operations of its subsidiaries, and in relationships with business partners in the chain of activities, as well as issues of implementation, civil liability, legal certainty, and equal conditions of competition. The results of the analysis show that Directive (EU) 2024/1760 contributes to the transition of due diligence from the realm of voluntary standards to a system of legally binding rules. The paper's contribution lies in analytically connecting the normative development of due diligence, the scope of corporate obligations, and the potential effects of the new legislative framework on legal certainty, corporate liability, and equal conditions of competition in the European Union's internal market.

Keywords: Directive (EU) 2024/1760; due diligence; sustainable business; internal market