Glossary term

business partner

A regulatory term referring to an entity: (i) with which the company has a commercial agreement related to the operations.

1 official sourcessingle_source

What does business partner mean?

Business partner is the CSDDD relationship term that captures both direct and indirect entities connected to a company's operations, products, or services. That breadth matters because the Directive does not stop its due-diligence lens at the first contractual layer.

Official definitions by source

CSDDD

Directive (EU) 2024/1760 on corporate sustainability due diligence

an entity: (i) with which the company has a commercial agreement related to the operations, products or services of the company or to which the company provides services pursuant to point (g) (‘direct business partner’); or (ii) which is not a direct business partner but which performs business operations related to the operations, products or services of the company (‘indirect business partner’);

Reference: Article 3, point f

View official source

CSDDD implementation timeline note

CSDDD entered into force on 25 July 2024. Member State transposition is required by 26 July 2026. The Directive applies first to the largest companies (net turnover > €1.5 billion EU-wide and > 1,000 employees) from 26 July 2027, with phased extension to smaller companies over the following years.

Practical application

This term matters when a company maps who falls inside its due-diligence perimeter, especially where risk may sit beyond the first contractual counterparty. Distinguishing direct from indirect partners affects data-collection strategy, contractual leverage, and the evidential path for showing that risk assessment went far enough.

Minespider commentary

For Minespider, business partner is a perimeter term. It determines how far a due-diligence workflow must reach into the network before the company can credibly say it has identified and assessed material risk.

Common confusions

  • Assuming the everyday meaning of business partner is enough without checking the official source definition.
  • Using business partner as a loose generic label rather than the narrower meaning used in the source text.
  • Confusing business partner with a neighboring legal actor or responsibility term without checking how the source allocates obligations.