Changing Nature of the Business Environment and its Impact on the Corporate Security Function - Term Paper Example

Critically discuss the changing nature of the global business environment and its impact on the corporate security function. (Course) (Tutor) (Date) Introduction The global business environment can be defined as the different environments available in the different, independent countries, with factors exogenous to the locality of an organization (Brattnaite and Drahos 2000). This normally affects on how decisions are made and how resources available will be utilized. This global business can be categorized into two broad classifications, that is, the internal environment and the external environment. This includes the social, economic, political, regulatory, technological environment. However, the political environment plays a critical role in the business environment as it influences legislation and regulation under which a foreign country will operate in. In order for companies operating internationally to function effectively, they must be aware of the social environment of the host countries, for instance, the culture and their language. As globalization is taking effect in most countries, this has also led to several changes in the international business environment. According to Hamilton 2005, the changes include; emergence and growth of new trading blocs and major changes to the existing one, for instance, development of the European Union, emergence of new markets with a great potential of growth, changes of the fundamental economic system in some countries and regions, diminishing international trade barriers, growth of multinational organizations, development of modern communication technology, and the positive impact that communication has had to the global business environment (Brattnaite and Drahos 2000). This paper will examine the adjusting character of the business environment, and the force of global business on corporate security. Factors that have contributed to the growth of global business environment/ the changing nature of the Global business environment The progress made in the liberalization of the international trade- this aspect is of importance in regard to the growth of global business. The World Trade Organization (WTO) through consensus with other stakeholders has agreed to remove trade barriers such as quotas and tariffs. This move has greatly contributed towards the rise and importance of international business. Cosmopolitan customers have contributed towards the Growth of international business. Most consumers in this era are mobile. They move or travel from one place to another. The mobile nature of consumers combined with the improved global media network means that consumers are exposed to new stuffs in the market, and accessibility (Moran et al 2010). Thus, when consumers move from place to place in search of new products, then there is the development of international business. In contrast, in ancient days, consumers only depended on products that were available locally (Cavanagh 2005). An improved communication system has also led to the growth of global business. Increase in international travel as a result of cheap, and fast communication channels has contributed to the easy movement of products in various countries. With this in mind, modern communication technologies such as internet and electronic media have eased the accessibility of customers (Suder 2004). Global brands have contributed to global business. Brands like coca cola, Rolex, and Mercedes among other brands have contributed to development of the global business as consumers tend to associate with such brands of high quality (Brattnaite and Drahos 2000). Growth of Global companies has also led to the development of global business through transcending international boundaries. Impact of global business on corporate security In light with globalization, the world is now a global village. This is so because problems in a certain part of the world can have effects in the long run. In this regard, traditionally, security was understood as the use of military force in order for a country to achieve goals and interests. However, as countries globalize, security has come to be understood as any factor that may pose a threat such as terrorism, environmental degradation, spread of diseases and overpopulation. With the development of global business, there is a reduction in corporate security services (Brattnaite and Drahos 2000). In as much as there is the introduction of new technologies in the market, they pose a major security to citizens of a certain state or country. Whereas it is the responsibility of corporate security firms to provide the necessary security for its citizens, it is very hard for these security agents to tack and arrest criminals. This is because of the introduction of modern forms of communication like the internet (Hoogvelt 1997). Criminals may use this kind of communication to coordinate with their counterparts as they know it is difficult for them to be tracked if they use the above mode of communication. This is so because most states are outsourcing many of their traditional functions for either political or financial reasons. This may lead to civil wars due to the numerous private security services whose owners have varying agendas (Moran et al 2010). Global business has led to collaboration of securities of different services. This impacts on how different countries make business decisions. Moreover, countries will collaborate in deciding the checks and balances so as to ensure accountability (Stiglitz 2002). This makes corporate security dependant on the collaboration of the home country and other parts of the world. Therefore, partnerships will greatly impact on security and stability of countries. Global business has also led to rise and growth of commitment based security. The private sector has raised concerns of the security of their assets and the overall security in general provided by the governments (Suder 2004). This has led to the private sector to work together in order to commit themselves toward having a better security (Moran et al 2010). For example, a food processor firm based in the US formed an anti terrorism task force that was mandated to evaluate and update its security details in order to curb the rising cases of product contamination through bio-terrorism. Additionally, global business has led to public opinion influencing the decision on the kind of security required. This factor influences on how governments, companies, and other stakeholders respond to any security risk that may arise (ASIS international 2010). Global business has led to the loss of confidentiality of information. Since most businesses have expanded beyond borders, it is necessary for them to outsource costs, for example, data input and data processing (Hoogvelt 1997). This may lead to security vulnerability as the companies can be blackmailed as a result of confidential information being exposed by the outsourced workers in overseas countries. In essence, some personnel have been vulnerable. In this case, the use of global staff is a security issue and thereby making it necessary for employers to vet these personnel before they can employ them. Failure to vet and ascertain that the people employed will be trusted with the company details can lead to employment of undesirable personnel who can sabotage the business (Suder 2004). Global business has led to Kidnappings for ransom. This has greatly raised the question of business security. With kidnappers targeting employees of a big organization, this is impacting negatively on the business environment. This is because kidnappers demand hefty ransoms in exchange for the kidnapped employees (Cavanagh 2005). This may lead to companies either to avoid doing business in kidnap prone business environments or incur extra costs in boosting private security in such areas. It has also led to the easy access and exchange of dangerous weapons of mass destruction (Stiglitz 2002). Once enemy countries possess such weapons, they can use them against countries they are in war with. If war breaks out, these weapons destroy various properties and lives are lost thereby affecting the business environment negatively. This will also result in transnational threats as weapons proliferation, drug trafficking, and spread of infectious diseases are some of the factors that will cause bad business relationships with other countries (Suder 2004). However, global business also has positive impacts towards corporate security. It promotes corporate security since there are new and better devices that assist in providing security. For example, the introduction of the CCTV cameras has reduced rate of crimes and general insecurity (Briggs 2005). This has been made possible due to the need of companies to ensure their assets are safe, and it is through this backbone that developing countries get to acquire such devices from developed countries (Hoogvelt 1997). It is easier for companies to track on what is going on in their companies. For example, with the emergence of technology, it is possible for companies to establish the point at which things start going wrong in their companies as records are saved in a computer and can be accessed from anywhere if one is connected to the internet (Stiglitz 2002). Global business has also promoted corporate security as it is not necessarily for companies to carry bulk cash. Due to globalization, technology has developed such that one can carry or store liquid cash, which is safer and less bulky compared to the traditional bulk of notes and coins (Stiglitz 2002). With these technologies, companies are only required to develop codes that they can use to send or receive money to other entities like banks. This brings down the risk of being robbed off the cash while it is being transited to various destinations (Stonehouse et al 2004). Reflective Commentary I can assertively say that the adverse growth of the global business has presented new challenge in the business environment. This has facilitated the emergence of trend in the corporate business. Continuous awareness in the growth of security cases has resulted from the presence of organization insiders. Essentially, this has lead to increased flow of insecurity reports where there is breach of security and /or theft of data. With regard to this, I propose that companies and/or organization should provide the required data accessing tools to data centers. Access controls should also be put in place in order to limit outsiders. The breach of data stored files should be countered by storing all data in secure database. This makes it easy for the files to be accessed only by authorized personnel in the companies and/ or organization. Consequently, increased sophisticated technology in mobile phones such as smart phones has contributed towards corporate security. It is now easier to transfer files, and other documents within companies /organizations put their security at stake due to the fact that technology is shared between mobile and computes in the business environment. Never the less, as technology advances data will gradually move to be stored in cloud computing. This will facilitate confidentiality in stored data of the given companies. Needless to mention, convergence of data security is a result of most governments implementing data security. Hence, most governments are able to handle security collectively by implementing privacy laws. Thus, reduction of hacking will prevail although this could be risky if the hackers are allowed to form large groups, which could be more destructive operations to a national sponsored level. Cyber criminal activity is likely to be on the rise forcing most companies to shift their priorities so as to mitigate the challenge. Through this, students should be in a position to understand the global environmental business, the advantages that have kept them thriving all along. Conversely, it should also be in a position to identify the critical threats that have brought challenges to the environment. With regard to this, they should be in a position to place their professionalism so as to fully handle both situations. My professional aspiration is being a head of security in a large organization where I can put to practice my profession. In essence, I would begin by improving the social network security by pursuing more efforts in security over privacy where information can only be accessed by the concerned people either personally or in companies or organizations. With the liberalization of international/ global trade, cosmopolitan customers, introduction of new communication technologies and development of global brands, the necessity of companies to invest in security rises. As Global business continues to thrive, it is imperative for corporate and private security institutions to tighten their security in order to create conducive environments where businesses can flourish. Thus, security institutions should take advantages of the available networking systems to boost security. Networking through the internet, and the new form of communication technology will assist in addressing the issues of insecurity. Bibliography: . ASIS international., 2010.Enterprise security risk management: how great risks lead to great deeds.a benchmarking survey and white paper Alexandra, VA: ASIS international Brattnaite, J. and Drahos, P., 2000. Global business regulation. Cambridge University Press. Briggs, R., 2005. Joining forces from national security to networked security .London Demos Cavanagh, E., 2005. Corporate security measures and practices:an overview of security management since 9/11.New York: The Conference Board Of Canada. Hamilton, B., 2005. Convergence of enterprise security organisations Alexandra,VA,The Alliance for Enterprise Security Risk Management. Moran, R., et al.,2010. Managing cultural differences: Global leadership strategies for cross- cultural business success. Rontledge. Stonehouse, G. et al ., 2004. Global and transitional business: strategy and management. John Wiley & sons. Suder, G., 2004. Terrorism and the international business environment. Cheltenham. Edward Elgar publishing. Read More