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1. Introduction
1.1. Definition and overview of industrial espionage and information theft
Industrial espionage and information theft is a form of crime in the corporate world. It is s a crime involving operations conducted by an organization against another aiming at acquiring some competitive advantage over the organization. In other words, it is the removal and copying of valuable business information relaying marketing strategies aiming at benefiting and strengthening the competitive advantage of the organization. Industrial espionage is a process that integrates several steps (Loberg, 2004). On a more precise context, industrial espionage can refer to collection of data directly related to economic and industrial targets focused at making profits. While referring to industrial espionage, the keywords for the analysis is the collection methods and gains made by the business entity over realization of information from a target company.
Collection refers to the methods and procedures used by business experts while gathering information related to the target organization. These methods are either legal or illegal. Normally, while determining the methods used for gathering data, experts often focus on the nature of information needed (Hannas, 2013). Apparently, these experts target people related to the company and as well the needs by the clients. While determining the possible data for collection, experts focus on valuable information that directly influences clients and market targets (Bencie, 2013).
On the other hand, profit refers to the potential gains arising from the risks faced while collecting the information. Apparently, bare information is irrelevant to the experts and thus focus on information that generates maximum gains to them when presented to competitors and third parties. Industrial espionage, a crime in the corporate world, has its acceleration from greed. The research paper objects at determining the nature of industrial espionage highlighting on some reported cases (Warren, 2013).
1.2. Difference between competitive intelligence and industrial espionage
The two business acts, corporate espionage and competitive intelligence have direct interrelationship. However, these acts differ in the methods of data collection. The latter is a legal procedure of gathering information aiming at increasing the competitive advantage of the organization. However, the former involves illegal procedures (Hannas, 2013).
2. Nature of industrial espionage
Information theft dates back in the sixth century. Its history has its roots when the Byzantine emperor hired some workers who made visits to China aiming at understanding silk production process in the country. Apparently, while in the visit, these workers had the ultimate role of smuggling silkworm eggs and seeds from China so they broke the monopoly in silk production. After some decades, Byzantine Empire became the largest silk producers in the world where they replaced China. It was an act of industrial espionage as it involved illegal smuggling of seeds and eggs from China (Benny, 2013).
Surprisingly, the highlighted case involving silk production formed basis for development of several empires and nations. Another important case was in the eighteenth century when France sent some of its military spies to steal Great Britain’s industrial secrets (Bencie, 2013). Later, in the 19th and 20th centuries, industrial espionage continued gaining roots in different continents and several cases reported raising alarm on the vulnerability of corporate information (Loberg, 2004).
Essentially, in the modern society, characterized by high competition and globalization of business environments experts are considering economic information and intellectual property as a valuable commodity in different nations (Hannas, 2013). Particularly, first class nations, governed by a high reliance of technology, there are high cases of information theft. Both government agencies and business entities are engaging in espionage activities with the objective of obtaining sensitive financial and economic policy information for competitive organization advantage (Warren, 2013).
Despite information stolen aimed at helping in increasing the competitive advantage of organizations, it as well undergoes some processes. These processes aim at analyzing the collected data and presenting it in a form valuable to the competitors. Mostly, sensitive information targeted by these experts present secrets and always has limited access (Warren, 2013).
2.1. Processes involved in Industrial Espionage
There are four steps involved in the overall process. They include determination of requirements, collection of the determined data, and analysis of the collected data and lastly evaluation of presented information. The discussion below gives an in-depth contextual analysis of the immediate steps integrated in the process of information theft (Roper, 2014).
2.1.1. Determination of the requirements
It is the initial phase of information theft. It involves determination of target organizations containing the relevant information (Benny, 2013). More so, during requirements stage, experts make approaches to these organizations requesting them to provide the information concerning the aspect related to the pursuing business entity. During the initial stage of information theft, experts often make promises to the target individuals on their safety on provision of the information (Bencie, 2013).
2.1.2. Information collection
It is the most vital phase in information theft as it incorporates a variety of crime activities based on smuggling and manipulation of target workforce (Roper, 2014). During the stage, collectors engage themselves in a couple of risks. Mostly, collectors evaluate these risks of obtaining data based on the gains promised by organizations and the risks of getting caught while smuggling the data (Hannas, 2013). Promised rewards have great impact on the lengths of risks during data collection. In situations when the collector has high returns from the mission of data collection, they even engage in other risky situation that may incorporate murder to realize the targeted data.
Information collectors may not only domestic citizens but as well foreigners from other nations (Warren, 2013). The time span of the collection process varies depending on the nature of data and the methods of extraction used. In situations where experts require collectors to have a complete production of data from an electronic chip, the task might be complex and conversely, the job might integrate some illegal activities such as murder and bribery. The following are some of the common methods used while collecting information from target industries (Warren, 2013).
2.1.2.1. Traditional methods
These involves the classical approaches to information theft use prior to the modern realization and reliance on technology (Warren, 2013). These methods often involved volunteers, recruits, and as well specialized technical and economic operations. Surprisingly, it was a physical attitude and approach towards realizing the objectives and targeted data from organizations. Bribes to authorities was the most common approach used by these collectors. After bribes, collectors gain access to the files and systems revealing the secret information required by the competitors (Benny, 2013). However, despite failure of reliance on technology approaches, they still engaged some information technology intelligence such as signal intelligence and communication intelligence that aided in evaluating the form of data presented in these systems and file systems (Roper, 2014).
2.1.2.2. Clan destine
It is a common method used in the modern society. The method uses blackmail on foreign students and other individuals in the foreign nations on their return to their home nations. It is a form of ethnic targeting (Hannas, 2013). Collectors as well use murder threats on these individuals inciting them to reveal information during trade fairs and conferences related to the targeted organizations and institutions. Apparently, while using the method of data collections, government officials aid in facilitating its prevalence and contexts (Bencie, 2013).
In some situations, competing firms recruit workforce from their competitors as a method of clan destining data from their targets. Other methods include corporate technology agreements between international organizations and as well sponsoring research projects on the target nations and corporates. Government-to-government projects that focus on evaluating policies implemented by other competing nations (Roper, 2014).
2.1.2.3. Open-source intelligence
It is the third method used in information theft. It entails technological approach based on database and systems. It involves secret reports and hiring of individuals on a wide range of scope (Benny, 2013). Manipulation of lawmakers often facilitates the overall process (Warren, 2013). Similarly, use of oversea recruits enhance an increased cooperation and contacts with officials with access to these database and file systems. Open-source intelligence is itself a hacking principle that uses several hacking methods.
Collectors in the modern society are focusing on database and systems using methods such keylogging where they retrieve passwords and other encrypted files relevant to information targeted (Hannas, 2013). On the other hand, company servers experience attacks based on denial of service attacks that contribute to network failure and conversely leading to revelation of vital and sensitive organizational data. Apparently, sniffer attacks are common while retrieving email passwords and website scripts. Scripts collected from these sites often may contain banking information important bank details and credit cards. Furthermore, targeting personal computers owned by target individuals, collectors as well use some malware threats that make their computers vulnerable to remote access (Roper, 2014). These can by through viruses, malware and Trojans.
2.1.3. Analysis of the collected information
In most situations, data collectors present their data in bulk. Conversely, it is not ready for use by the experts and competitors (Benny, 2013). The process involves compilation of data both in physical and electronic procedures. Furthermore, in the collected data, analyzers mostly focus on determining the interrelationship and the flow of information between the past presented data and the market trends.
2.1.4. Evaluation
After analysis, both collectors and analyzers relate the outcomes with the requirements developed prior to the espionage. The evaluation process involves auditors who develop the interrelationship between the results and the target missions presented. Lastly, in cases where the outcome does not meet the requirements, new collectors repeat the procedure (Benny, 2013).
3. Industrial Espionage cases
3.1. Opel and Volkswagen case
During the early 1990s, Opel piled a case against Volkswagen for industrial espionage. These automobile companies engaged in an unhealthy competition move when Volkswagen hired some workforce from Opel (Roper, 2014). The court judged the case as espionage when it ruled out bale payment to Opel of a minimum of 1 billion dollars for seven years from the company.
3.2. Starwood and Hilton case
It is among the recent reported cases where Hilton Inc. engaged in an espionage act over its competitor Starwood (Benny, 2013). The case arose when the later hired employees from Starwood. Based on these employees, Starwood filed a case against Hilton for stealing secrets from Hilton. Evidence from the case revealed that Hilton’s head downloaded some information from Starwood’s laptop and emails accounts related to the company that enhanced their profitability in the hospitality industry (Hannas, 2013).
3.3. New Gillette Razor Design
It is another case relating to information theft in the corporate world. The case presents information related to Gillette Company and its competitor Bic. The former filed a case accusing Bic for using Davis, a former Gillette employee, in accessing their trade secrets (Warren, 2013).
4. Effective measures while curbing information theft.
4.1 Data Encryption
In cases engaging electronic data, encrypting data increases the difficulty of access by unauthorized people. Data encryption can be through passwords on personal computers and networks and firewalls on servers. Loopholes are some of the common channels used by collectors while gathering data from networks (Roper, 2014).
4.2. Use of stand-alone computers
Stand-alone systems refer to computers that do not relay information to the network. Often, networked computer are more vulnerable to than stand-alone and thus need of storing critical information in these computers (Hannas, 2013). Related to these systems and computers, companies may use alarm systems that may notify the technicians in cases of intrusion.
4.3. Understanding employees
As presented in the cases above, employees are the intermediate sources for information relayed to competitors. Therefore, understanding employee backgrounds before assigning them tasks of handling sensitive information is vital in ensuring that they do not reveal the information to third parties (Roper, 2014).
Conclusion
Industrial espionage is a major problem in the business world. As a source of information to competitors, it involves both foreigner and insider individuals who expose sensitive information related the organization. As presented in the cases above, industrial espionage plays a great role in contributing to financial losses. However, as seen in the paper, there are some measures that companies take while curbing the act.
References
Roper, C. A. (2014). Trade secret theft, industrial espionage, and the China threat.
Hannas, W. C., Mulvenon, J. C., & Puglisi, A. B. (2013). Chinese industrial espionage: Technology acquisition and military modernization. London: Routledge.
Warren, P., & Streeter, M. (2013). Cyber crime and warfare.
Benny, D. J. (2013). Industrial Espionage: Developing a Counterespionage Program. Hoboken: Taylor and Francis.
Bencie, L. (2013). Among enemies: Counter-espionage for the business traveler.
Loberg, K., & Silver Lake Publishing. (2004). Identity theft: How to protect your name, your credit and your vital information-- and what to do when someone hijacks any of these. Los Angeles, Calif: Silver Lake Pub.
Conduct disorder can be described as a common psychiatric problem that has recently increased its incidence in adolescence. It is of the essence to understand that the primary diagnosis that occurs with conduct disorder often includes aggression, theft, violations of rules and lying. It has that 90 percent of detailed juvenile offenders often have conduct disorder and in fact only 20 percent of these juveniles are often formally assessed (Weiner, 2003).
It is of the essence to, therefore, understand that with the sheer number of children that have conduct disorder, there is a need for the courts to provide adequate mental health assessment, and treatments with positive outcomes. This paper will examine the need for assessment for conduct disorder in juveniles, and the change that occurs in because of the conduct disorder.
Conduct disorder
Must a state of the art assessment tool that will be used in measuring conduct disorder. The assessment will be pivotal in providing effective mental health treatments for children with conduct disorder; this information will be provided to courts hat often detain juveniles (Weiner, 2003). The assessment is important as it provides better outcomes and creates long-term benefits of early intervention.
It is often unfortunate that most patients with conduct disorder typically do not perceive their behaviour as being problematic. Similarly, parents and teachers in many cases do not often consider the longstanding conduct disorder when they are attributing causes to children's behaviour (Grisso, 2005). Therefore, the symptoms of conduct disorder often go unnoticed in the society. Courts are often in their best position to get stakeholders and it includes agencies in juvenile justice, primary care, mental health and education.
There are several issues that must be resolved as well as identified if the mental health needs of the juveniles are to be adequately met. In the assessment stage, there is a need for shared knowledge and information sharing that often includes scientific knowledge as to what is effective mental health treatment. There is a need to understand that social work and law enforcement juvenile justice personnel often has a lot to contribute and there is a need for their opinions to be heard.
In the court, there is a need for justice, and it is of the essence to note that juvenile that have conduct disorder should be given an opportunity for their condition to be heard. This is because this is a disorder, and it might have impacted their ability to commit the crime (Grisso, 2005). For this reason, even if there is a need for a prison sentence, there is a need to ensure that the juveniles are taken into consideration, and that treatment starts right away. This issue will be of importance as justice will be delivered to the Juveniles in the right way considering their mental conditions.
The court might at times bring the matter of conduct disorder and the person might plead insanity (Grisso, 2005). This is because the person at the time of the crime did not have the mind to know what he or she was doing and therefore, he or she was not of sound mind because of the conduct disorder. The first con is that juvenile person might use the conduct disorder as a reason for committing a crime. On the other hand, it is a real disorder and consequently, there is a need to ensure that a person is given the justice that he or she deserves (Mash, 2009).
Works Cited
Grisso, T. (2005). Mental Health Screening and Assessment in Juvenile Justice. New York: McGraw-Hill.
Mash, E. (2009). Assessment of Childhood Disorders, Fourth Edition . Chicago: Aspen Publishers.
Weiner, I. (2003). Handbook of Psychology, Forensic Psychology. New York: SAGE.
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