Due Process is a phrase that arose from Chapter 39 of the Magna Carta in 1215. The exact phrase was first used in a restatement in 1354. It is fundamental to the purposes of that document and to the operation of a democracy. It limits the power of those in authority to operate in an arbitrary (read, tyrannical) manner and forces them to use the rule of law.
This idea was incorporated twice into the U.S. Constitution, where the federal government is required to use due process before depriving any person of his life, liberty, or property and then expanded to the state governments.
As such, it has become ingrained in the American consciousness as “fairness.” It is not fair to act in an arbitrary manner, that is, without due process.
From Wikipedia:
Typically, “Due process” means
1) NOTICE, generally written, but some courts have determined, in rare circumstances, other types of notice suffice. Notice should provide sufficient detail to fully inform the individual of the decision or activity that will have an effect on his/her rights or property or person.
2) right to GRIEVE (that being the right to complain or to disagree with the governmental actor/entity which has decision making authority) and
3) the right to APPEAL if not satisfied with the outcome of the grievance procedure.
Why Do You Need It?
First, courts have been very expansive in requiring due process. Yes, it originally applied only to governmental actions and then only to those that deprived a person of life, liberty, or property. But the scope has expanded to other rights and coverage been extended to non-governmental authorities. For example, due process is often required before firing an employee for cause.
Second, your reputation depends on it. Many view due process as a fundamental right. Ignore it at your own peril. You can lose the trust of your stakeholders in an instant by arbitrary action.