Navigating Preparedness for Corporate Sustainability due Diligence Directive Compliance in Czech Manufacturing Businesses

ABSTRACT This study assesses the readiness of Czech manufacturing companies for the corporate sustainability due diligence directive (CS3D), revealing a disparity in preparedness between large firms and smaller manufacturers (SMEs) within the Czech sample, with smaller firms facing stronger barriers due to less formalized internal processes and geographic disadvantages. Based on qualitative interviews, the study recommends that the public sector establish CS3D resource centers to provide localized guidance and enhanced information dissemination. It also advises companies to integrate sustainability and human rights due diligence into their core operations. This involves leadership endorsement, comprehensive employee education, and promotion of a sustainability culture through transparent communication and active engagement. These initiatives ensure compliance with the Directive, enhancing companies' competitive advantage and reputation and positioning them as leaders in sustainable and ethical practices.