69 Sodobni vojaški izzivi, november 2013 – 15/št. 3
Contemporary Military Challenges, November 2013 – 15/No. 3
VPLIV	KORPORATIVNE	VARNOSTI	NA
NACIONALNO	VARNOST
Povzetek
Ključne 
besede
Abstract
Dragan Trivan
THE	INFLUENCE	OF	CORPORATE	SECURITY	ON
NATIONAL	SECURITY	
V sodobnem svetu je varnost izpostavljena številnim nadnacionalnim in asimetričnim 
grožnjam. Take okoliščine zahtevajo sodelovanje in skupna prizadevanja varnostnih 
zmogljivosti nacionalnih držav, pa tudi njihovo trdnejše povezovanje v kolektivni 
sistem mednarodne varnosti. V tem okviru korporacije kot najbolj razviti poslovni 
sistemi, ki presegajo nacionalne meje, vzpostavljajo sistem korporativne varnosti, ki 
poleg svoje temeljne funkcije, torej zaščite varnosti podjetja, dodatno vpliva na na-
cionalno varnost.
V času globalne soodvisnosti sta nacionalna varnost in gospodarski razvoj neločljivo 
povezana. Medtem ko varnostna tveganja ogrožajo pretok ljudi in kapitala, stabilni 
gospodarski razvoj in uspešno izvajanje javnih služb spodbujata legitimnost in 
krepitev socialne kohezije v državi, s čimer se zmanjša nevarnost družbene frag-
mentacije. Po drugi strani pa lahko gospodarska kriza in recesija sprožita varnostne 
grožnje, od brezposelnosti, revščine in politične nestabilnosti do znotrajdržavnih in 
mednarodnih konfliktov.
Na stanje korporativne varnosti v državah Zahodnega Balkana in njeno vlogo v 
sistemu nacionalne varnosti vplivajo predvsem trenutna gospodarska in finančna 
kriza, nedokončan proces tranzicije, politična nestabilnost, nove oblike varnostnih 
tveganj in groženj, porast organiziranega kriminala in korupcije ter slaba pravna in 
normativna ureditev nedržavnega varnostnega sektorja.
Nacionalna varnost, družba, korporativna varnost.
In the modern world, security is exposed to numerous transnational and asymmet-
ric threats. Such circumstances necessitate the collaboration and joint efforts of 
the security capacities of national states, as well as their firmer integration into the 
DOI:10.33179/BSV.99.SVI.11.CMC.15.3.5
70 Sodobni vojaški izzivi/Contemporary Military Challenges
Dragan Trivan
collective system of international security. Within that framework, corporations, as 
the most developed business systems that transcend national boundaries, establish a 
system of corporate security that, in addition to its basic function as the protection of 
the security of a business, exerts further influence on national security. 
In the era of global interdependence, national security and economic development 
are intricately connected. While security risks jeopardize the transfer of people and 
capital, stable economic development and successful provision of public services 
stimulate legitimacy and strengthen the social cohesion within a state, thus reducing 
the threat of societal fragmentation. On the other hand, economic crisis and recession 
can fuel security threats, from unemployment, poverty, and political instability, to 
intra- and international conflicts. 
The state of corporate security in the countries of the Western Balkans and its position 
in national security systems is influenced primarily by the following factors, the 
ongoing economic and financial crisis; the unfinished process of transition; political 
instability; new forms of security risks and threats; the coupling of organized crime 
and corruption; insufficient legal and normative organization of the non-state security 
sector. 
National security, corporation, corporate security. 
The transition from the XX to the XXI century was marked by the onset of a 
worldwide shift in security trends, with the focus of security widening from the 
military-political sphere to many other areas, in particular to economic, energy, 
social, ecological and information and communications security, including human 
security and the security of society in general. The end of the bloc confrontation, 
the processes of democratization, globalization trends, integrative processes and 
established mechanisms of prevention in the area of international security, as well 
as growing economic and cultural cooperation and interdependence, have reduced 
the risks of the escalation of regional conflicts, as well as the escalation of crises 
on a wider scale and open interstate conflicts. 
The traditional understanding of national security, based on the concept of sover-
eignty, i.e. the model of protection of state and societal values and interests, loses 
its meaning and significance in actuality. The new concept of national security 
focuses on human security and the participation of individuals in international 
and global security. In place of the state, the role of active security subjects has 
been increasingly overtaken by individuals and non-governmental, sub-national 
and transnational entities. Apart from traditional security functions – diplomacy, 
intelligence and defense – contemporary states place emphasis on the importance 
of economic, energy, cultural, social, information, and other spheres of security. 
Key words
Introduction
 71 Sodobni vojaški izzivi/Contemporary Military Challenges
THE INFLUENCE OF CORPORATE SECURITY ON NATIONAL SECURITY 
Having considered these facts, it can be argued that a key precondition for the 
functioning of a state is the corresponding level of its economic development. 
All relevant components of the social life of an individual are conditioned by his 
standard of living, meaning that the survival and development of a state’s demo-
cratic institutions are dependent on the level of economic development. According 
to John Dewey, economic history is more human and more democratic, and hence 
more liberalizing than political history (Dewey, 1966, pp. 232-233). However, 
this does not necessarily indicate that societies with richer economic histories are 
politically more progressive, nor that economic development alone is enough to 
eradicate authoritarianism within a nation; in fact, what is being stated is that only 
at a certain level of economic prosperity can the level of education and political 
culture which makes citizens ready for democratic challenges be achieved. (Lipset, 
1960, p. 50). 
The increased availability of information, as well as that of capital, services, 
products and people, in a world in which the significance of international bounda-
ries has changed, has created new social, political, economic and cultural relations. 
Thus, the world as we now know it is almost unrecognizable in comparison to the 
one which existed until the last decades of the XX century. The underlying premise 
of such a situation is that the concept of the sovereignty of a national state and 
economy has been violated, and that new regional and transnational associations 
and systems are being established throughout the world, acting as regulators of a 
globalized economy. One of those key associations and systems is the large, trans-
national corporation. 
The conditions of doing business on national and international levels reduce the 
capability of corporations to predict future occurrences, consequently increas-
ing the uncertainty of all aspects of their function. The increasing number of or-
ganizations, groups and individuals – as well as the appearance of new methods 
and means of compromising available to them – with the potential to jeopard-
ize the survival, growth and development of corporations, is evident, regardless 
of whether they do it for economic, political, ideological or religious reasons. In 
an attempt to avoid or diminish the consequences of different forms of threat to 
their business and property, and in order to achieve their business goals, modern 
corporations are obliged to pay more attention to threat-identification and assess-
ment, as well as to risk management. Of additional importance is the introduction 
and implementation of defense mechanisms - the most important being corporate 
security, as an efficient integral system of protection from inside. 
Inadequate preparation of corporations with regard to the identification of and 
reaction to symptoms of latent and strategic crises can significantly endanger their 
business, something which was observed in the case of many companies following 
the onset of the international financial and economic crisis in 2008. 
72 Sodobni vojaški izzivi/Contemporary Military Challenges
Given the significance of corporate security in relation to achieving the strategic 
goals of a company, an organizational unit assigned to undertake security tasks 
should be set up in a way that ensures the establishment of clear responsibili-
ties and precise authorization for the execution of its primary purpose. Should 
a firm or company with a high number of employees, or one doing business in 
different locations be involved, an organizational unit on the first level of division 
of labor is necessitated. As regards smaller companies, for tasks within the scope 
of security management, a corporate security manager should be named and 
should report directly to top management. In the event that this is not economi-
cally viable, a top-level executive must assume the role of a security manager 
(Trivan, 2012, p. 227). 
There is no doubt that in Western Balkan countries, an important part of the current 
function of corporate security within companies is still related to activities that 
are, in the broadest sense, related to the physical and technical protection of indi-
viduals, property and operations of the company, internal factors that these opera-
tions organize and direct, as well as the contracting of external or internal subjects 
that can implement it in practice. It can be argued that the current “epicenter” of 
corporate security in the region is self-protection activity in large technical-tech-
nological systems, which results in errors in definitions of the concept and content 
of corporate security. The problem is made more complex by the fact that some 
companies that are compulsorily-protected (banks, post offices and other institu-
tions) may employ private security for most categories of service, whether protec-
tive or self-protective. 
The work, as well as an earlier empirical research conducted in Serbia, have 
required the application of various scientific methods (historical-comparative 
method, case study, content analysis, examination). Research results suggest a 
necessity of further adjustment of organizational forms of corporate security in the 
companies in Serbia and in other countries of the Western Balkans.
Statistical method was used in the research, with certain limitations. Mentioned 
limitations in application of this method were conditioned by the researches of 
mostly quality and not quantity contents. In the selected deliberate pattern, which, 
taking into consideration the research problem was the only one possible, 34 re-
spondents were included (30 corporate security managers in companies and two 
representatives of each, the Security-Intelligence Agency and the Army-Security 
Agency).
We have used a questionnaire which was based on the semi-open (semi-guided) 
questions as an instrument of the empiric research of situation in the corporate and 
national security area. By the test method (structured expert’s interview) informa-
tion was collected about the factual situation of functioning of corporate security 
in companies in the Republic of Serbia, about various segments of scientific foun-
dation of basic theoretical provisions on national and corporate security and about 
Dragan Trivan
 73 Sodobni vojaški izzivi/Contemporary Military Challenges
their mutual influence, as well as a value judgments of leading corporate security 
managers and representatives of the Republic of Serbia security services about 
questions that were a subject of the research.
 1 NATIONAL SECURITY
 1.1 Conceptual determiners of national security
The precursor to the modern concept of national security is thought to be “The 
Doctrine of inviolability of sovereignty”, dating from the Peace of Augsburg in 
1555, which gave the right to a ruler to decide the religion of his realm (cuius regio, 
eius religio – whose realm, his religion). This right was confirmed and reviewed by 
the Prague Treaty of 1635, and the Westphalia Treaty of 1648, which marked the 
end of the Thirty Years’ War between Catholics and Protestants. It is about the last 
feudal war, which was the first war of the sovereign state. After that, the European 
rulers were refusing to accept a secular authority of the Roman Catholic Church. 
They have replaced the Papacy System from the Middle Ages with a geographically 
and politically separate states, which were not recognizing any type of higher gov-
ernance. The same legal rights were given to the newly liberated states, the territory 
under their exclusive control, unlimited control related to the internal policy affairs 
and the freedom of leading the foreign affairs and conclusion of agreements with 
other states. A concept of the state sovereignty was established then, that no one is 
above the state and the political authority is based on the territory and autonomy. 
Territoriality – internal sovereignty – signifies the right of an exclusive political 
authority over a certain geographic area, whilst autonomy – external sovereignty – 
signifies that no outside factor – namely, another country – has authority within the 
boundaries of a defined state (Holsti, 2006, pp. 17-23).
As for the concept of “national security”, we can understand it to be the objective 
state of a nation and a country, in which its legitimate organs and institutions 
undertake legal measures and activities with the aim of achieving basic national 
interests in the field of foreign and internal policies, economy, defense, education, 
scientific work, culture, and other areas of social life. Starting from this theoreti-
cal definition, national security depends on its military-political and geostrategic 
position, the character of the state, as well as the characteristics of international 
relations in both its immediate and wider surrounding. According to the definitions 
of several international relations experts, national security means “the lack of any 
fear of attack, endangering of interests or threat of any other country or countries” 
(Bourquin, 1934, p. 473).
There are numerous definitions of the concept of national security in contemporary 
literature, the content of which comprises key elements of the concept of security 
(the object of security, the subject of security and the subject of threat), as well 
as the activities undertaken by the aforementioned elements. The term “national 
security” has been in use since 1943 when Walter Lippman used it for the first 
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time in his seminal work “U.S. Foreign Policy”. After World War II, the concept of 
national security found widespread use in the political glossary of modern states. 
In that context, it was used to denote the internal and external security of the state; 
that is, the security of a state in relation to internal and external sources of threat or 
hazard. It is the security of a state that enables its survival and normal function, with 
all elements of independence, territorial unity and constitutional order (Masleša, 
2001, p. 37). Some feel that such use of the term “national security” is inadequate, 
given that it defines the security of a state, and not of a nation, which generally 
pertains to a broader geographical area. In that sense, the term “state security” is 
more correct, as it signifies the security of state values and interests, primarily 
sovereignty, constitutional order and government, thus rendering the everyday 
security of individuals a secondary priority (Mijalković, 2009, pp. 60-61). 
Though the term “national security” is employed extensively, the concept lacks a 
unified, universal definition. Each proposed definition has relied on other conten-
tious and unclear concepts, particularly when it comes to defining values vulner-
able to threat and which require protection (Dimitrijević, 1973, p. 20). Therefore, 
in the “International Encyclopedia of Social Sciences”, national security was 
defined as the capability of a state (nation) to protect its inner values from outside 
threats (Sills, Merton, 1968, p. 40). Amin Hewedy understands national security as 
a function of national states, through which, in accordance with their own current 
and future capacities, and with respect to global changes and development in the 
world, protect their own identity, existence and interests (Hewedy, 1989, p. 16), 
whilst B. Javorović defined it as a global security of a political community, and 
as a particular security within the framework of the internal community. In that 
sense, national security is understood to include both the internal and external 
security of the state, i.e. the security of the state with regard to internal and external 
threats, which enables its existence and normal functioning (Javorović, 2001, pp. 
23-24). D. Nelson regards national security as a basic frame of any other security
and defines it as a relation between state threats and state capacities. Furthermore,
he has stated that a balanced relationship between threats and capacities offers
potential conditions for peace and prosperity (Nelson, 1997, pp. 348-350). Taking
into account the above statements, it is reasoned that “hard power”, i.e. military
power, is becoming increasingly offset by so-called “soft power,” to wit, econom-
ic-financial, technical-technological, communications and information, political
and democratic-social power. (Simić, 2002, pp. 37-38).
Common elements in the varying definitions of national security that are relevant 
to the content of this concept are as follows, the state as an object and subject of 
national security; defense and control of national (state) territory; public security – 
personal and property protection; the preservation of national sovereignty; the re-
alization of basic functions of society (social-economic, social-political, cultural, 
ecological, economic, etc.); the strategy and politics of security; the security of 
total state potential; the protection of national interests; security from aggression 
and external pressures; security from internal subversions; security from threats to 
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proclaimed fundamental societal values; the subjective feeling of safety, security 
and well-being. Taking all this into account, a broad spectrum of elements and activ-
ities contained within the concept of national security can be noted. Distinguishing 
between concepts of state and society in contemporary theory and practice, it can 
be concluded that certain elements representing the security of society and individ-
uals also represent the contents of national security. This implies that a state is not 
the sole object of national security, but that this concept also comprises a societal 
and individual security.
 1.2 Components of national security 
With the aim of the protection of national security and the realization of national 
interests - understood as a set of values and goals that are to be achieved or 
preserved from other nations by the use of capabilities and potential of a state or a 
nation - every state establishes a system of national security according to its needs. 
The pillars of the national security system are, the state, which confronts security 
challenges and threats in an organized manner; society (citizens), which confronts 
them primarily through unorganized forms and non-governmental sectors which 
complement the security function of a state and society. To some degree, we can 
include the international community as a pillar of the security system, primarily 
with regard to the prism of international law and the different methods of collabo-
ration within the security sphere. The content of the state’s national security system 
is defined in terms of the influence of various threat elements (real or presumed) 
stemming from both external and internal sources. Modern practice shows that 
distinguishing between real and presumed sources of threat is often difficult, and 
sometimes impossible (Tatalović, Bilandžić, 2005, pp. 74-75).
The subjects of the national security system are, the state apparatus, non-state 
subjects, intergovernmental capacities and citizens, as well as services, organiza-
tions, organs, bodies and institutions which, through their regular activity, directly 
or indirectly realize security function or contribute to its realization. These forces 
are organized, trained, equipped and authorized organizational units of conven-
tional security subjects, who directly undertake a particular group of security tasks. 
“Activities” are elements of the national security system that enable the function-
ing of the system on two levels, at the internal level, with the aim of conceiving, 
organizing, establishing, functioning and improving the security system, and at 
the external level, with the aim of neutralizing of threats, and the maintenance 
and improvement of security. “Duties” are legally defined parts of the function 
(sub-functions) of national security, by which the goals of the security system are 
accomplished, and whose realization is in the authorization of particular security 
subjects and forces. “Security measures” are operations and activities undertaken 
by the security system in situations unfavorable to the core values of a society, 
with the aim of moving the security subjects and forces from a regular state to 
one of increased readiness for the neutralizing of existing or forthcoming threats 
(Mijalković, Milošević, 2011, pp. 15-16).
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1.3 Security sector
Notwithstanding important differences between comprehensive and restrictive 
definitions of the security sector, there is also a significant level of agreement con-
cerning the basic institutions which fall within the scope of that sector, namely the 
army, the police and the security services. Differentia specifica between these and 
other state institutions is that the first ones are authorized to use force on behalf 
of the state (Edmunds, 2007, p. 23). Through such a definition, a clear and un-
ambiguous difference is made between security sector institutions and other state 
organs; however, the differences between the aforementioned institutions have not 
received much attention. For instance, the notion of “security system reform” is 
considered in conjunction with the presumption that it is equally attributable to 
each of the three mentioned institutions, thus neglecting and negating important 
differences between them. Within the framework of the process of transition of 
post-authoritarian and post-conflict societies of the former Eastern bloc countries, 
including the states of the Western Balkan region, there is an ongoing reform of 
the security sector. By this, we understand a separate theoretical concept which, 
under the influence of the European Union and North Atlantic Treaty Organization 
(NATO), has developed into a comprehensive and well-rounded political strategy. 
This concept is increasingly used in the interpretation of society and security 
processes in a national state or union of several states, and the achievements of 
security sector reform are seen as an important indicator of the direction, tempo 
and reach of the total democratic reform of a whole society. 
Given that the term “security sector” encompasses the completeness of a concrete 
society and its component institutions, its reform comprises and requires, changes 
in the way of thinking and practicing security; changes in constitutional and insti-
tutional arrangements; the establishment and development of democratic, civilian 
control over armed forces; reform of the armed forces, i.e. redefinition of the 
purpose and tasks of each of their components, and the resultant change of their 
structure, training, equipment and number, as well as various forms of interna-
tional security collaboration and an increased level of security integration (Shaw, 
2000, pp. 14-16). 
It should be taken into account that defined limits between private and public/state 
security sector have not yet been established. Though it is possible to classify the 
forms of the organization and methods of control over non-state and state subjects 
in these sectors, the tasks themselves are much more difficult to differentiate. This 
refers in particular to the tasks of the private security sector, which bear many sim-
ilarities to public sector police work. Consequently, many authors differ in their 
classification of the tasks or functions of private security, considering them to be, 
in a way, akin to the tasks and functions of the police. A similar pattern is followed 
by national lawmakers during the normative regulation of certain issues related to 
the private security sector (Trivan, 2012, p. 172).
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 2 CORPORATE SECURITY
 2.1 The functioning of modern corporations
According to the “Oxford Advanced Learner’s Dictionary” the term “corpora-
tion” is defined as “a large business company, an organization or a group of or-
ganizations that is recognized by law as a single unit, which has similar rights to 
an individual, and which represents the most common way of business associa-
tion” (Oxford, 2000, p. 279). Thus, a corporation represents the union of different 
interest groups (stakeholders) – shareholders, management, employees, deponents, 
and the local community. 
The basic principles upon which modern corporations are based are profit efficien-
cy, HSEC (Health, Safety, Environment Management, and Community Relations), 
and BCCM (Business Crisis and Continuity Management). The HSEC principle 
comprises of, Health – the promotion and improvement of the health standards 
of the employees and the local community; Safety – the establishment of safety 
values and the provision of a safe and secure workplace for the employees; 
Environment – the promotion of an efficient use of business resources, concurrent 
with the reduced pollution of environment; Community – adherence to ethical prin-
ciples, contribution to the economic prosperity and sustainable development of the 
local community, and respect for the human rights. Implementation of the BCCM 
principles involves facilitating the functioning of a corporation in normal condi-
tions, during crises, emergencies and accidents, as well as enabling business con-
tinuity after the end of crisis and emergency situations, which requires proactive 
and reactive action and administration by the management. 
Characteristics of the business practice of modern companies are simultaneity 
and interdependence of opportunities, vulnerabilities and dependencies. Although 
every business operating in an open market has an opportunity to succeed, it 
is also vulnerable, regardless of whether the threats to which it is exposed are 
results of market competition or stem from general insecurity. Modern corpora-
tions, in order to function successfully in today’s conditions, must anticipate future 
events and threats. The duty of top management is to define convenient business 
responses to all challenges. Moreover, the functioning of companies cannot be 
seen as isolated, but intertwined and dependent on the multitude of circumstances 
and events caused by worldwide globalization trends and the current international 
economic and financial crisis. Thus, security management, now more than ever, 
requires in-depth understanding of the threats with which corporations are faced. 
In these uncertain times, no business is immune to an unforeseen circumstance. 
(Mishkin, Eakins, 2005, pp. 380-381). 
The causes and forms of endangerment which relate to the security of corpora-
tions include, technical and technological accidents; natural disasters; criminal 
offenses that damage a business subject (diversions, terrorism, sabotage, destruc-
tion or damage of the production tools or products); classic criminal offenses; 
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“white collar crime” committed by employees, most often in collaboration with 
business partners (abuse, corruption, bribery, embezzlement, robbery, agreement 
to do business against the company’s interest); criminal offenses of causing general 
danger and criminal offenses against human health and environment; leaking of 
confidential data; tort (the breaching of work discipline, deviation from prescribed 
work organization, transgression or usurpation of authority and competence, in-
compliance or insufficient compliance with procedures, negligent operation); 
social and other disturbances within the corporation. 
 2.2 Concept and basic characteristics of corporate security 
According to some definitions, corporate security represents the presence and/or 
absence of premeditated, negligent or accidentally-caused hazards in the largest 
business systems in the area of corruption, organized crime, business secrecy, in-
formational security, physical and technical security and safety at work. In this 
regard, corporate security is a strategic function of a company, with the goal of 
achieving safety of the business success of the corporation. It comprises the elimi-
nation of all risks and hazards that can impact business activities and achieve-
ment of business goals; the reduction of threats to a minimum; the maintenance of 
operation during crisis conditions (crisis management), the overcoming of crises, 
and the return to normal functioning“ (Ivandić Vidović, Karlović, Ostojić, 2011, p. 
34). Within the framework of corporate security, security management refers to the 
organization and administration of the system of protection of corporate employees 
and property. Its responsibilities necessitate the setting of goals, planning, organi-
zation, the issuing of orders, control, coordination, and the responsibility for safe 
operational conditions within the company. 
It is thought that corporate security is integrated by definition, as it comprises 
various functions that require synchronization. As such, it represents a function of 
a corporation that controls and coordinates all security, continuity, and safety activ-
ities within a company. The existence of an efficient system of corporate security 
protects the company from dangerous activities, establishes the base for the man-
agement’s decision-making, provides the top management access to the confiden-
tial information, and sets into motion processes and procedures that prevent the 
leaking of classified data (Milošević, 2010, pp. 59-60).
Today, corporate security has become a strategic function of business subjects and, 
as such, defines the integrated security policies of corporations and their practical 
implementation. Consequently, the definitions of some authors state that the basic 
characteristics of corporate security are, the general security of a corporation; the 
responsibility of experts for corporate security, who nowadays face difficult tasks 
(simultaneously supporting increasing business needs and preventing increasing-
ly sophisticated attacks on corporations); professional ethics, i.e. the feeling of 
belonging to the profession and the efforts of all corporate security professionals 
to aspire to a high level of performance (Murray, McKim, 2000, p. 6).
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Pursuant to the doctrine and practice of countries with developed market 
economies and stable democracies, the functions of corporate security include, 
Administrative Security – procedures and policies in the area of information 
security; physical and technical protection (Out-Source/Proprietary) of machinery, 
equipment and objects; security of property and external partnerships (Personnel 
Security); Protective Security – protection of individuals and safety at work; 
Fire Security; Contingency Planning; Information Security; Executive Security; 
Event Security; security of agreed activities within state structures; investiga-
tions/Criminal Protection Program, as well as Security Education Awareness and 
Training Program (Kovacich, Halibozek, 2002, pp. 161-162). 
The organizational structure of the security sector in corporations is a symbiosis of 
human and material resources which, in the most efficient manner possible, con-
tributes to the successful realization of its tasks. The quality of a structure depends 
on many factors, with the basic criterion being the success of strategy-realization 
or the end-goal of corporate security. Therefore, it is necessary to analyze available 
ways of organizing the security sector or models of the formation of organizational 
structure (Massie, 1987, pp. 41-42). For small enterprises, and also for medium-
size companies, the expenses required for the introduction of a system of corporate 
security are considerable, and difficult to attain. However, this is not to say that 
security should be ignored on the part of such enterprises. On the contrary, it is 
important that executives or owners are educated and well-informed in relation to 
security management issues, are prepared to utilize their internal resources for that 
purpose, and choose appropriate external partners in order to undertake security 
activities that they themselves cannot perform. 
 2.3 Corporate security as a part of the non-state security sector 
Theoretic efforts to define the non-state security sector have not produced uni-
versally-accepted results. According to some, that concept would, in a broader 
sense, include all activities in the security area outside the competencies of the 
state organs. More specifically, the non-state security sector contains only legally 
based professional activities organized for providing certain security services in 
the process of security protection and crime control. This is primarily related to 
the activities of private specialized security companies (hereinafter, PSC), the op-
erations of organizational units in companies in charge of corporate security tasks, 
as well as the operations of private military companies, detective agencies and in-
stitutions for the implementation of criminal sanctions (Kesić, 2009, pp. 11-12).
Therefore, there is an insufficient distinction between private and corporate 
security. It should be noted that besides activities related to the private protec-
tion of individuals, operations and property (objects, space, and values), the op-
erations of private military enterprises also enter the scope of private security, as 
well as other security-related operations undertaken on a commercial basis, mer-
cenaries, private detention centers, different forms of “participation of citizens 
in crime control” and other (Matić, 2006, p. 61). On the other hand, the system 
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80 Sodobni vojaški izzivi/Contemporary Military Challenges
of corporate security organized and implemented within companies contains ac-
tivities which, for a variety of reasons, are not normally delegated to specialized 
suppliers of private security (“business intelligence“, protection from industrial/
business espionage, information security, security of operations contracted with 
the state structures). Furthermore, in accordance with the European Union guide-
lines, corporate security is defined as an integral security which covers security 
and safety jobs, and what includes information collection duties, security assess-
ments and risk assessments, IT protection, crisis management, fire-protection, 
explosions and accidents, health and safety at work and other. (Ivandić Vidović, 
Karlović, Ostojić, 2011, p. 68).
1 Under the concept of Business Intelligence (BI) the most often we understand a 
legal collection of business information, in fact of the publicly available data, as 
well as processing of the mentioned information into the business analysis for the 
sake of providing support to the corporation management in making and realiza-
tion of the best quality possible business decisions for preservation of its position 
within the business environment.
Unlike in developed countries, in the former Yugoslavia (with the exception of 
Slovenia and, to some extent, Croatia) the concept of corporate security has not 
yet been put into practice, whilst there is a mismatch in the approach to this issue 
in theory. Among Serbian authors there is no consensus in relation to the notion of 
corporate security; thus, it is often merged with the concept of private security. In 
literature from this region, definitions tend toward the following, it is a planned, 
organized and legally based individual or joint activity and function of organiza-
tions aimed at their own protection or protection of others, as well as at the protec-
tion of certain individuals, areas, assets, businesses or activities, and which are not 
covered by the exclusive protection of state organs.
In terms of previous development of the non-state security sector in the Southeastern 
Europe area, it is evident that there is a significant inequality. As a matter of fact, 
whilst the corporate security in the most countries of that area is relatively undevel-
oped, the grown private security sector, which is, by the outsourcing model, often 
being engaged for performance of security functions in companies, is followed 
by numerous problems, which are, due to joint legal, political, economic and 
cultural heritage, typical for these countries. Amongst them, the most important is 
the absence of appropriate standards and professional ethics in work, inadequate 
training of staff and insufficient material and technical equipment of companies 
for private security.
The process of the spreading of corporate security and the non-state security 
sector in general is global, universal and simultaneous. It is also characterized by 
uniqueness and diversity, due to the specific relations and processes existing in 
particular societies. Part of the operations performed by this sector is to relieve 
police services and enable them to dedicate their efforts to other legally-regulat-
ed activities, whilst on the other hand, the material and technical resources, as 
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well as knowledge and skills possessed by the staff employed in corporate and 
private security sector can be very useful for the state organs and citizens during 
a state of emergency. However, aside from the numerous advantages of the pri-
vatization of security sector, problems and risks stemming from it should not be 
forgotten, including its position in the national security system, oversight of the 
operations of companies that perform this profession, the ownership structure of 
those companies, staff contracting and training, and the evaluation of services they 
provide and other (McCarthy, 2006, pp. 30-33). 
A major problem in the development of non-state security sector has been 
observed by a German theorist, V. Merkel. He argued that in so called deficient 
democracies and weak states, some actors (individuals, groups, institutions) exert 
direct influence on the direction and content of state decisions in accordance with 
their own interests. In such cases, the efforts of the state to pursue reform in the 
non-state security sector are often blocked due to the interests of the opposing 
structures, particularly if reforms would deprive them of financial, material and/
or some other benefits. These opponents can be individuals who possess economic 
power (tycoons and oligarchs), economic complexes such as military-industry, 
multinational corporations, organized criminal, paramilitary and guerrilla groups 
etc. Furthermore, democratic reforms can be blocked by particular state institu-
tions or its organs not subject to democratic control or accountability, such as 
armed forces, police and security services. The common denominator in relation 
to all of the aforementioned actors is that they use illegitimate channels in order to 
block reforms that would jeopardize their partial interest (Merkel, 2004).
The privatization of security functions, in addition to other factors, raises the 
question of accountability and transparency, particularly if the operations of the 
specialized agencies are to be undertaken on the territory of other states. With such 
activity comes the risk of potential abuse of power, the violation of legal norms 
and the violation of human rights and freedoms, as well as, in extreme cases, the 
exacerbation of social tensions and political destabilization in a country (Fabien, 
Dearden, 2006, pp. 13-16).
At first glance, the security privatization process can appear to be an example of 
the erosion of sovereignty of state power, given the violation of the monopoly over 
the use of legal violence. However, it is the state that decides when and which 
security contracts will be offered to the specialized legal entities, with the purpose 
of selling them to those who can afford to pay for this right. For this reason, it 
would be more precise to say that, instead of the erosion of state power, the privati-
zation of security leads to the creation of a new web of security subjects in which 
the power of state and private actors is divided through the new technologies of 
governance, control, and coercion (Avant, 2004, p. 157).
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2.4 Regulations in the area of corporate security
Corporate security in the highest number of national legislations is not separately 
administered by the appropriate regulations. However, the most important issues 
that are related to its functioning are the subject of various laws, primarily of those 
that refer to the security area, critical infrastructure, human rights protection….
In terms of the states from the territory of former SFRY, the Republic of Slovenia, 
while in procedure of admission to the European Union with full membership, 
regulated the issue of relationship of the state and non-state security sector 
(corporate and private security) by passing the Law on personal security and the 
Law on detective activity. In accordance with these regulations, the Ministry of the 
Interior and the Assembly (professional association of companies of the non-state 
security sector) are responsible for issuance of licenses and for supervision of work 
of this sector. Procedure for obtaining of the license differentiates personal and 
technical conditions which candidates are to fulfill when submit their application. 
Personal conditions include the following, citizenship of the Republic of Slovenia; 
adequate qualifications; psycho-physical capability and no criminal record for can-
didates for crime offences that are punishable ex officio and for the offences with 
elements of violence. Technical conditions are determined by the Minister of the 
Interior with a special regulation. Commission for issuance of the license consists 
of two representatives of MoI and three representatives of the Assembly. 
Regulations in the Republic of Slovenia forbid for the subjects of non-state security 
sector making of business deals for which the police and judicial authorities are 
authorized, as well as performing of jobs for domestic and foreign intelligence or 
counter-intelligence services. Members of the respective sector cannot use special 
operational methods and means during their work, for which the Ministry of the 
Interior and Slovene Intelligence-Security Agency are authorized. If, during their 
work, they come across information about the committed crime offence that is 
punishable ex officio, they are obliged to inform a competent state authority about 
it.
Relation between the national security system and non-state security sector in the 
Republic of Croatia is regulated by the Law on protection of persons and property 
and detective activity and by the Law on private protection. Inspectorate of the 
Ministry of Interior is responsible for registration of enterprises, issuance of work 
licenses and for supervision of work of this sector.
In order to register a legal entity as enterprise for providing security services the 
following must be done, to get registered with the Commercial Court; register the 
person responsible for the enterprise; form organizational structure of the enter-
prise; register the armory and determine design of uniforms of employees, which 
must be different than uniforms of the state bodies. In order to have a particular 
person working in a non-state security sector, he/she must fulfill the following con-
ditions, to have place of residence in the Republic of Croatia; to have appropriate 
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educational degree; to posses psycho-physical working capability; to have no 
criminal record, no investigation pending against him/her, and no convictions for 
offences with elements of violence during last three years; to have security checks 
successfully passed with the competent security agency; and that he/she speaks 
Croatian and is able to write Latin scripts. 
The Law requires that the members of non-state security sector must pass the 
training and the examination with the authorized institution. Candidates who 
already have secondary school education (for private detectives higher or high 
education is required) attend mandatory training courses in duration of 40 hours 
for guards, and 80 hours for security officers, whilst for the detective’s jobs ad-
ditional training is not anticipated, but only passing the exam. However, former 
police officers, military police officers, state security services, former court and 
prison guards and bailiffs are exempt of the examination if they have three years 
of work experience in security jobs. 
In Montenegro, conditions and way of performing of work and of performing jobs 
of protection of persons, property and assets which are out of the state competen-
cy, were administered by passing the Law on protection of persons and property 
in 2005, as well as of the authorization of persons who perform protection duties, 
of mandatory organization of the protection service, organization of internal pro-
tection service and of supervision over the protection work performance. In ac-
cordance with the provisions of this Law, companies and entrepreneurs may deal 
with jobs of physical and technical protection in Montenegro. These jobs may 
be performed only upon a written contract concluded between the purchaser and 
the entrepreneur who performs internal physical protection work of the protected 
object. 
In Bosnia and Herzegovina functioning of the non-state security sector is admin-
istered on the entity level, in the Federation of BiH by the Law on agencies for 
protection of persons and property, and in the Republic of Srpska, by the Law on 
agencies for protection of persons and property and private detective work. Both 
Laws forbid to the agencies performing of jobs for the needs of the Army and 
Internal Affairs bodies, performing jobs of protection of managers of the executive 
power bodies, state administration bodies, canton, city and municipality bodies, 
as well as jobs of protection of representatives of political parties. Furthermore, 
employees of agencies cannot dispose with police authorization nor with the au-
thorizations that possess prosecutors and judges, and they also cannot apply the 
operational methods and means which, on grounds of special regulations, are being 
applied by the Ministries and other competent state administration bodies. 
In the Republic of Macedonia relation between the state and non-state security 
sector (in this country it includes providing services of physical and technical 
security and fire protection) is regulated by the Law on activities of personal and 
property security and the Law on weapons. The Ministry of the Interior of the 
THE INFLUENCE OF CORPORATE SECURITY ON NATIONAL SECURITY 
84 Sodobni vojaški izzivi/Contemporary Military Challenges
Republic of Macedonia and the Security Chamber, which are normally competent 
also for registration of enterprises and for issuance of the work licenses, control 
the implementation and following of legal provisions in this area. To obtain the 
work license in the non-state security sector, a candidate must have Macedonian 
citizenship and the place of residence in this country, cannot have a pending court 
decision on a ban of employment and must pass the state exam before the Security 
Chamber. 
The Republic of Serbia is the only state in Southeastern Europe which has not yet 
legally administered the non-state security sector, in spite of the fact that a high 
number of companies which provide security services deals in the region and in 
Serbia during the last several years submitted a number of proposals how to legally 
regulate this sector. Despite the fact that this area is not legally regulated in Serbia 
such as in other countries, there is a high number of companies that perform jobs 
related to the sector of private security. Smaller number of agencies have joined 
up as legal bodies to the Serbian Chamber of Commerce, whilst other, smaller, 
informal “companies” which provide “ad hoc” services in that area, are not regis-
tered with the Chamber.
The arguments in favor of legal regulation of corporate security and non-state 
security sector are numerous, and through analysis it is possible to determine why, 
in some cases, this has not yet been done. Some authors have classified the reasons 
for the regulation of that area as follows, a determination of constitutional and 
other legal competencies and restrictions of work of private providers of security 
services; the protection of inviolability and privacy of individuals who come into 
contact with the non-state security sector; the prevention of use of private protec-
tion agencies for political purposes, for suppression of strikes, demonstrations and 
similar; the definition of space and objects in which private security enterprise 
is allowed to perform its operations; a definition of the role, area of cooperation 
and division of labor between the organs of state power (police) and the non-state 
security sector; enabling the public to clearly and visibly distinguish police staff 
from the staff of private protection agencies; the overseeing of delegated compe-
tencies by the members of the non-state security sector; the provision of additional 
legal protection of the employees of those agencies in performing their activi-
ties; the exclusion of criminals and ex-convicts from that sector; the securing of 
equal standards in the operations of security agencies; the control of arms posses-
sion within companies that provide security services; the overseeing of operations 
of multinational security companies; the provision of uniform training in those 
agencies; the elimination of unregistered companies in this area; the improvement 
of status and reputation of subjects of non-state security sector; the establishment 
of acceptable working conditions and the remuneration of employees in this sector; 
the increase of state income through licensing fees (Hakala, p. 2008). 
Harmonization of regulations that refer to the non-state security sector has still not 
been conducted at the level of the European Union. In this area two organizations 
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are operating, the Confederation of European Security Services (CoESS) and UNI 
Europa. The two organizations, which promote minimum conditions for operation 
of private security companies, have so far adopted several joint documents related 
to some aspects of functioning of the private and corporate security sector in the 
EU member states, aiming to establish standards and an adequate level of pro-
fessional ethics. And besides that, national legislatures of the European Union 
member states exhibit a significant diversities, that also reflect various traditions, 
social and cultural environment.
Despite the absence of harmonized legislature in the European Union, some aspects 
of the non-state security sector activity have been regulated by numerous conven-
tions and recommendations adopted by the Council of Europe. These documents 
primarily refer to the human rights protection and preservation of the rule of law at 
national level, having in mind that these values may be jeopardized by the private 
security sector (right to privacy, freedom and security, non-discrimination, ethics, 
responsibility and protection of consumers and other). 
 
It should also be mentioned that the shortcomings in the European legislature which 
refer to the non-state security sector do not also mean an absence of the appropriate 
legal regulations at the European level. In that regard, the European Commission 
reviews the legal regulation of PSC in certain member states in accordance with 
the principle of freedom of movement of people, freedom to provide services and 
freedom of law establishment. Having in mind that the industry of private security 
represents a significant economic sector in the European Union, we must apply the 
market laws when providing services of private security, whose implementation is 
within competence of the European Court of Justice. 
 2.5 Corporate security in Southeastern European states
When we analyze the development of corporate security in the Southeastern 
European states, we should bear in mind that the type of activity, as well as the mem-
bership of the company to the certain economical branch or industry, determine the 
nature of security jobs in it and the specifics of corporate security organization. In 
this respect, the most important industrial branches in this area are related to the ex-
ploitation of oil, gas, mines and other natural resources, including water. Business 
activity of corporation in these areas requires large investments and generates high 
revenues which are to be shared with the local authorities, which often becomes a 
source of disputes and frictions inside the state or between the states. (Trivan, 2012, 
p. 25). In these circumstances, a respectable level of communication with the sur-
roundings is expected from security managers. Corporation practice indicates the 
high influence which these companies may have on the local surroundings and its 
existing characteristics (ecological, demographic, technical and technological) with 
regard to the level of protection of natural resources and reduction of various types 
of pollution. Corporate security in such corporations has got a high importance in 
situations connected with building and functioning of big infrastructure projects, es-
pecially of those which require displacement and relocation of the local population, 
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86 Sodobni vojaški izzivi/Contemporary Military Challenges
in order to obtain access to natural resources which are the subject of exploitation. 
Mining, oil wells and similar activities which degrade natural resources may often 
aggravate the local security situation, especially if they are not followed by provision 
of information to the population about potential health vulnerability. (Daničić, Stajić, 
2008, p. 90). 
According to the annual analysis, created by the SEENews and by the consultancy 
agencies A. T. Kearney and Euromonitor International, on the list of 100 biggest corpo-
rations in Southeastern Europe in 2011, the first ten posts were taken by, OMV Petrom 
(Romania – 4.1 billion € revenue), INA (Croatia – 3.6 billion € revenue), Lukoil 
Neftochim Burgas (Bulgaria – 3.4 billion € revenue), OMV Petrom Marketing SRL 
(Romania – 3.2 billion € revenue), Automobile – Dacia SA (Romaina – 3.1 billion 
revenue), Aurubis Bulgaria (Bulgaria – 2.9 billion € revenue), Petrol (Slovenia – 2.8 
€ revenue), Rompetrol Rafinare SA (Romania – 2.7 € revenue), Naftna industrija 
Srbije AD (Serbia – 1.9 billion € revenue) and Lukoil – Bulgaria EOOD (Bulgaria – 
1.8 billion € revenue).
A certain number, of mostly large corporations in Southeastern Europe (SEE) has in 
the last decade expressed a readiness to invest a part of the profit in their own sectors 
of corporate security, as they have recognized them as an important support to the 
business process, competitiveness at the market and a successful functioning of the 
company. These investments have been leading to professionalization, as well as to 
a necessity for employment of a new category of professions – security managers, 
as competent experts responsible for management of processes related to security in 
corporation. Therefore, a demand for services of specialized companies for security 
consulting, business intelligence, information security, physical and technical 
security and other, has been growing. Awareness about the corporate security has 
progressed with the top management of a certain number of business subjects from 
this region during the past years, especially in comparison with the situation when a 
need for development of security system in companies has exclusively been looked 
upon through the services of physical and technical protection.
Under the influence of the global economic crisis, but also of various internal factors, 
corporation management in the countries of SEE has got more and more tighter ma-
neuvering space in terms of anticipation possibility and realization of influence on 
the happenings important for the stable running of business. In an effort to remain 
at the market and to mitigate numerous negative consequences of crisis, more suc-
cessful corporations from this area (mainly bigger ones, and often the multinational 
ones) focus even more on the timely identification and assessment of business-relat-
ed threats, risk management as well as on the more efficient and wider implemen-
tation of the defense mechanisms, of which corporate security has got the biggest 
importance. In comparison to the situation in the developed economies, implementa-
tion of corporate security system is in the majority of Southeastern Europe countries 
in backlog, which is also typical for the Republic of Serbia.
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Under the circumstances of the current crisis, in most Serbian companies (similar 
situation is in Bosnia and Herzegovina, Montenegro, Macedonia and Albania as 
well), only some functions of corporate security are being realized. Their security 
management realizes it either by engaging internal resources or by concluding 
contracts with special agencies (outsourcing). In almost all companies various jobs 
related to physical and technical security, fire protection, and health and safety pro-
tection at work are performed, and in most of them also the jobs of risk assessment 
and business security, as well as prevention and taking action in extraordinary situ-
ations. Information and administrative security are significantly lower on the list 
of priorities of business entities, the same as education programs and development 
of security culture of employees, and security of the top management. The domain 
of criminal protection of companies and conducting of internal investigations in 
companies, in the absence of sufficient normative provisions, is being reduced to 
internal controls and reviews, and to more or less successful cooperation of corporate 
security managers (or members of the agencies engaged for providing services of 
private security) with representatives of competent state bodies and services in the 
area where a business entity is located.
In the Republic of Serbia, like in other countries of the Western Balkans, a small 
nubmer of companies protect themselves from the industrial and business espionage 
in an organised way. Such situation is caused by the habits kept from the time of 
socialism, when the state-owned enterprises were not only protecting their own in-
formation and projects, but they were even giving them free of charge. Available 
data indicate that the “business intelligence” activity has been carried out in a certain 
number of corporations which operate in this region. In practice, the content of these 
activities is most often related to searches on the Internet, conversations with in-
dividuals from competitive companies, transition of people from these enterprises 
to the work in the company, obtaining of data and exchange of data at the fairs, 
symposiums and similar events. However, there is no information that any business 
entity in Serbia has got a separate internal “business intelligence” organizational 
unit, which has, for years already, become a practice of modern corporations in the 
world (Trivan, 2012, p. 371).
The basic problems in the security management area in the Republic of Serbia, but also 
in most Southeastern Europe countries that are currently in the accession procedure 
to the European Union, besides the immediate consequences of the current economic 
crisis, are related to a lack of adequate legal documents in this area, unawareness 
in numerous companies of the necessity of functioning of the efficient system of 
corporate security (and often non-understanding of corporate security role), bad or-
ganization and bad staff composition of the corporation security protection services 
(significant presence and influence of former members of army, security and police 
agencies), lack or obsolescence of the existing rules and procedures, insufficient 
and non-regulated cooperation with competent state bodies (Kešetović, Simonović. 
2009, p. 155).
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 88 Sodobni vojaški izzivi/Contemporary Military Challenges
 3 THE INFLUENCE OF CORPORATE SECURITY ON NATIONAL SECURITY 
Corporate security represents one of the basic criteria for the achievement of 
economic goals and the adoption of the economic measures for crisis situations, and 
also represents an important segment of the economic politics of a state. In addition, 
corporate security contributes to the energy security of a state, which includes di-
versified routes of supply, stability of delivery and production of fuels, creation of 
necessary autonomy and strengthening of regional position in supply of fuels and 
products. One of the goals of corporate security is that corporations, in line with 
their capabilities, support defense and security preparations on a national level, and 
in the event of a threat to the state, assist in providing the basic needs of citizens and 
logistic support to key structures in the system of national security. In order for these 
measures to be undertaken in a timely manner, harmonization of the existing and the 
adoption of new regulations that may improve the reaction of the state in different 
situations is of prime importance. 
The increased risk of asymmetric security threats, especially in the aftermath of 
terrorist attacks in the USA in 2001, has played a part in developing the idea that 
protection of critical infrastructure should become one of the priorities of national 
security in almost all states (Čaleta, Rolih, 2011, pp. 41-42). Although in theory there 
is still no consensus regarding the content of the concept of critical infrastructure, 
we normally understand by that term natural and material assets, property, technical 
systems, communications, business operations and services that are of particular 
interest for a state and whose destruction or termination of functioning would jeop-
ardize national security, the economic system, vital social functions, the health of 
the population, the public order and the protection of national interests. Technical 
systems, technological processes and operations in different parts of critical infra-
structure at a national level have the potential to be the targets of various harmful 
activities, including terrorism. 
Critical infrastructure must be specially protected and it is necessary to ensure its 
normal work, since one of the most difficult disorders that may happen is so called 
a chain reaction, which transmits the disorder also on other systems, multiplying 
the consequences. Result of a variety of disorders within the mentioned systems in 
theory is described as a cascade effect or a domino effect. Due to these reasons the 
main task of critical infrastructure management is prevention or reduction of prob-
ability of the occurrence of natural or man-induced effects which may lead to cata-
strophic disorders in the protected systems.
The process of European integrations, among other things, also requires establish-
ment of interoperability between the regional infrastructures and infrastructure of 
the European Union as a whole. In that regard, a special accent is on the critical in-
frastructure as a bearer of stability of economic development and social relations, 
and due to that reason, recommendations and legal frames for protection of these 
resources have become a necessity in the national development programs. 
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In accordance with the Statute of the Council of Ministers of the European Union 
no. 114/2008 dated 08 December 2008, the definition of the “European Critical 
Infrastructure” (ECI) includes a critical infrastructure which is situated in the 
member states and whose disorder or destruction has got a significant influence on 
at least two member states. Which serious circumstances are in question, is assessed 
in accordance with the inter-sector criteria. This includes impacts on other types of 
infrastructure, which is expressed through cross-sector dependence. 
In accordance with the Decision of Government of the Republic of Slovenia dated 19 
April 2010, “critical infrastructure of national importance in RS covers those areas 
and services which are of a vital importance for the country and whose outage or de-
struction would have a significant influence and serious consequences to the national 
security, economy, key state functions, health, security and protection, as well as 
social protection”.
Having in mind the seriousness of consequences of jeopardizing the “key infrastruc-
ture”, in literature striving was noted that in their protection an integrated model of 
corporate security is applied, leaving some less sensitive functions (physical and 
technical security) of that system to the external specialized service provider from 
that area (outsourcing). That integrated model in the Critical Infrastructure Systems 
would be, when the functions of corporate security which may be an outsourcing 
subject are expected, according to M. Vršec, able to include, head security manager 
and his subordinates – operational security managers; organizational unit for security 
and protection (protection from natural, industrial, transport and other disasters, pro-
tection of persons, secret information and business secrets, protection of information 
and archives, protection of electronic communications, protection of patents, seals 
and corporation reputation, fire protection, protection from hazardous substances 
and protection at work), organizational unit for safety of documents; organizational 
unit for information technology protection; organizational unit for operational work; 
security control centre (Vršec, 2011, pp. 59-60).
Corruption and organized crime, traditionally deep-rooted in Southeastern 
Europe, endanger fundamental values of a society and lead to a decrease of trust 
in the national state institutions, hamper the implementation of essential reforms, 
slow the process of transition, economic development, and integration, discour-
age foreign investment, and can even threaten national security. With that in 
mind, corruption and criminality are often the key tests corporate security in a 
company can fail. Thanks to their resources, corporate security managers in both, 
the public and private sector can contribute significantly to the establishment of 
business procedures and control mechanisms, primarily through cooperation with 
other segments of business practice within the corporations. The establishment of 
a security system in financial and accountancy operations, adequate support for 
internal auditing and control activities, the functioning of the system of informa-
tion security using “business intelligence” method, as well as the establishment 
of an adequate system of procurement, resistant to corruption, are of the utmost 
THE INFLUENCE OF CORPORATE SECURITY ON NATIONAL SECURITY 
90 Sodobni vojaški izzivi/Contemporary Military Challenges
importance. Another important aspect is collaboration with state and other institu-
tions in suppressing criminal and corruptive practice inside a company. 
Strategic advantages of corporations are not any longer founded on exclusive-
ly physical resources or on good management, but first of all on the knowledge 
that exists in the company and information received from the market. Information 
received must be filtered, processed and correlated in order to enable the company 
management to make particular conclusions and decisions on its basis. The problem 
which arises in this regard is that there is a huge amount of information which is 
available from the market, from the competition or from the corporation itself, and 
it is necessary to select the pieces which are really relevant for the certain purpose.
As pointed out by some authors, gathering of timely, punctual and accurate informa-
tion is not sufficient by itself, since it is necessary to correlate these pieces of infor-
mation, to put them in an adequate context and to draw conclusions on their basis, 
which will enable the action, and finally, realization of profit for the corporation. In 
conditions of being overcrowded with information that characterise today’s market, 
individuals and enterprises need a radar (Business Intelligence) which enables them 
to timely identify the relevant information, as well as to prevent the loss of time and 
delays on something which, in the long-run, does not bring profit for us (Singer, 
Alpeza, Balkić, 2009, p. 220).
With regard to the relationship between “business intelligence” and national 
security, it should be taken into account that state instruments still have a dominant 
role in providing its own internal and external security, in the protection of national 
interests. However, the role of corporate security and, by extension, of “business in-
telligence” is becoming increasingly important. This occurs in economic systems of 
all countries, regardless of the nature of their internal regulation. “Business intelli-
gence” as an intelligence function is aimed at collecting and analyzing information 
that serves as a base for the decision-making process within a corporation, and can 
be performed within any of the business instruments when the national interest of 
a country towards foreign nations is in question. Nevertheless, corporate security 
and “business intelligence“ have a dominant role in the area of national security that 
comprises public/general interests, aimed at the achievement of internal economic 
welfare, a high standard of economic development, high level of employment and 
living standard. 
The operation of „business counter-intelligence“- that is, activities aimed primarily 
at security of a company and establishment of mechanisms for its protection - is 
highly important for national security. Any activity that serves to eliminate or reduce 
the results of the actors of industrial/business espionage, contributes to the strength-
ening of security of the economy of a state, which is a significant contribution to 
the total national security of that state. In Serbia, few companies employ any kind 
of protection against industrial and business espionage. The cause of such a state of 
affairs are habits inherited from socialism when socially-owned companies did not 
protect their own information and projects. What is more, they openly shared them 
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for free. With this in mind, a security culture – that is, the culture of business protec-
tion - needs to be adopted by all employees, regardless of their status within a corpo-
ration. That can represent a problem in practice, as top management sometimes dis-
regards certain procedures, due to a common understanding that they are not subject 
to question, even though it is them in particular who are required to be the founders 
and pillars of the security culture; to lead by example and transfer the value system 
of security and protection to other employees.
In the case of the states from the Western Balkans area and the former SFR of 
Yugoslavia, more serious attention is being paid to the business-intelligence operation 
issues in the Republic of Slovenia and the Republic of Croatia. However, in Croatia, 
according to their authors, methods that are considered as Business Intelligence have 
been insufficiently applied in the business practice, first of all because most managers 
of Croatian companies have not been informed about them in the right way. Hence it 
occurs that the corporations in that country cannot also refer appropriately towards 
neither foreign partners who dispose with almost all relevant data, nor towards 
the domestic competition (Bazdan, 2009). Such a situation in the economy clearly 
indicates to a need for opening a good quality Business Intelligence agencies which 
would start up the slow mechanisms in Croatian economy. These agencies would 
be a precondition in creation of solid foundations for future directing of business 
information which will be needed for that state when it becomes a member of the 
European Union. It is interesting that in the Republic of Croatia, unlike highly-de-
veloped countries, only 9% of corporations use „business intelligence“ as a separate 
business function (companies such as Pliva, Adrisa and HT have got a formally 
tasked departments for Business Intelligence) (Singer et al., 2009).
Corporate information systems can be exposed to various security threats that 
endanger not just the technological segment of a company, but often the business 
as a whole. Those threats can come from the outside, but can also be sourced from 
within the system. The object under threat can be any asset in the information system, 
such as, the information-communication system of a corporation; computers and 
the data they contain; data about business associates; personal data of employees; 
various registers and databases; information-communication technology, including 
computers and mobile phones; operational and manufacturing processes in corpo-
ration; technology; staff employed in organizational units connected with informa-
tion-communicative system; technical protection systems; intellectual property, etc. 
(Javorović, Bilandžić, 2007, p. 296). 
The proper handling of classified information of a corporation extends to the entire 
life-cycle of those data or information, including also the aspects related to their 
removal and destruction. At the end of the life-cycle, classified data or informa-
tion are examined and a decision is made as to whether they should be archived 
and stored permanently, have the classified tag removed and used publicly, or 
destroyed. The classified data or information that are no longer needed for the cor-
poration’s business, together with additional material, are destructed in such a way 
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92 Sodobni vojaški izzivi/Contemporary Military Challenges
that the reconstruction and unauthorized use by third parties is not possible (Matić, 
2006, p. 181). 
Corporate security is directly dependent on the democratic character and economic 
development level of a society. In times of the deep global crisis, which also reached 
Southeastern Europe, manifested by, among other things, the decaying and shutting-
down of a number of companies, corporate security (which, incidentally, had not 
been developed in a modern sense) is not in a position to contribute to saving unsuc-
cessful companies or the economic recovery of these countries. 
It can be argued that companies throughout Southeastern Europe do not invest 
enough in security, with the exception of banks and corporations originating in 
developed economies, and in which security is of key importance for the normal 
functioning of a corporation. One of the consequences of the global economic crisis 
is an absolute and relative decrease of investment in corporate security, present in the 
majority of companies in Southeastern European countries. A lowering of the level 
of internal protection makes corporations vulnerable to internal and external security 
threats and hazards, particularly regarding different forms of crime and corruption. 
Therefore, it is necessary that even during the global economic crisis, a part of the 
profit of corporations doing business in this region remains invested in the establish-
ment and improvement of the system of corporate security, as this is a function that 
represents a significant support to the business success of companies. In particular, 
this refers to the protection of critical infrastructure, the area of information security 
and the security education of employees. 
3.1 Results of the empirical research on the influence of corporate security 
on national security 
During 2011, in the territory of the Republic of Serbia, in his PhD dissertation, 
D.Trivan performed empirical research taking the form of expert interviews, with
the aim of describing and explaining the level of influence exerted on the various
areas of national security by performing functions of corporate security on the basis
of collected and analyzed data and expressed value attitudes and remarks of execu-
tives/managers that administer security sector in corporations in Serbia, as well as of
experts from national security services (BIA and VBA).
According to the answers from the interview, the most important sources and forms 
of corporation jeopardizing are,
Crime offences committed by usage of information technologies (IT)
Leaking of protected and classified data
Technical and technological accidents
Various minor offences (violation of work discipline, deviation of prescribed work 
organization, overdraft or usurpation of competencies and authorizations, non-
implementation or partial implementation of the prescribed procedures, negligence at work)
Dragan Trivan
 93 Sodobni vojaški izzivi/Contemporary Military Challenges
The second group, by importance, consists of, 
Crime offences of causing of public danger and crime offences against the health of people 
and the work environment
Economic crime offences committed by employees, most often in conjunction with business 
partners
Crime offences that are causing damage to the business entity (diversions, terrorism, 
sabotages, destruction of damaging of the production means and destruction of products)
Crime offences of the classic crime
The following is categorized into the less present sources and forms of jeopardizing 
of corporation, 
Natural disasters 
Social and other unrests within the company 
Traffic accidents and incidents
Sources of jeopardising of national security and their influence to corporate security 
have been categorised by the examinees in the following way,
External aggression
Separatism
Terrorism
Armed rebellion
National and religious extremism
Activity of foreign intelligence services
Organised crime
Corruption
Money laundering
Problems od economic development
Consequences of natural disasters and of technical and technological accidents
Jeopardinsing of environment
The general conclusion of the research is that in Serbia exists an unregulated, non-de-
lineated, unbalanced, and ultimately unsustainable relationship between the system 
of national security and the non-state security sector (private and corporate security).
The empirical research showed that corporate security has a large or medium 
influence on the achievement of state and national interests, on the economic power 
of the state, and the stability of the national economy. The majority of the interviewed 
corporate security managers were of the opinion that, despite its lack of functions 
in the area of protection of secrecy of data, corporate security has some, but not yet 
THE INFLUENCE OF CORPORATE SECURITY ON NATIONAL SECURITY 
94 Sodobni vojaški izzivi/Contemporary Military Challenges
sufficient influence on national information power. The research also showed a very 
unfavorable state of information-protection within corporations in Serbia. 
The influence of corporate security on national security in the Republic of Serbia in 
the area of organized crime was evaluated by the interviewees as being at a medium 
level. On the other hand, it is thought that corporate security has a high impact on 
the prevention of corruption and “money-laundering”. According to the results of 
the empirical research, corporate security has a relatively small, i.e. insufficient, 
influence on national security in the area of prevention of political violence (as-
sassinations, coups d’état, armed rebellions, conspiracies, uprisings, revolutions), 
as well as the suppression of different forms of extremism and torture. However, it 
was concluded that the impact of corporate security functions on national security is 
somewhat higher in the prevention of internal conflicts in the state (“the more suc-
cessful companies, the stronger the state, which means less internal conflicts and the 
better situation of national security”).
3.2 Suggestions and proposals for the future
In order to have corporate security functions successfully carried out and to produce 
a higher positive influence to the national security, it is necessary to also do the 
following,
 – It is necessary to have the corporate security developed in companies through the
system established in accordance with the following principles,
 – uniqueness (all elements and system factors at corporate level and in the parts of
company are developed in accordance with the same principles, they are function-
ally connected and conjoined in the executive function at the corporation level,
respecting the subordination and an obligation of carrying out instructions from
the higher decision-making level);
 – rationality (inclusion into the function of security of all available human, material
and organizational resources of the company, forming of operational high-quali-
fied services for security jobs which will efficiently plan, direct, harmonize, follow
and control the functioning of all systemic factors);
 – universality (organizational and functional conformation which will enable an
efficient elimination of consequences of all assessed real sources and forms of
jeopardizing and simultaneous engagement in several directions in order to realize
the best effects);
 – selectivity (precise and consistent defining, delegating and distribution of elements
to the system factors of corporate security);
 – adaptability (possibility of a fast and an efficient transmission of focus of activity
of factors and redistribution of security system elements in accordance with the
changes of work conditions, sources and forms of jeopardizing);
 – reliability (capability of the system to be in permanent functional situation inde-
pendent of anybody’s individual will and to stimulate the factors to the desirable
and prescribed behavior).
 – Taking into consideration the importance of corporate security for realization of
strategic goals of the company, organizational unit which will carry out these jobs
Dragan Trivan
 95 Sodobni vojaški izzivi/Contemporary Military Challenges
should be set up in such way that it possesses clear responsibilities and precise 
authorizations in accomplishing its basic tasks. If we have a corporation with a 
high number of employees or a company which deals at various locations, this 
organizational unit should be at the first level of division of work assignments. 
In smaller companies it is necessary to establish a security board or appoint a 
security director/manager who will be directly responsible to the top management. 
If this is not economically feasible, one of the top managers in the company must 
take over also the role of security manager.
 – Corporate security director should by ranking belong to the highest level of the 
middle management or to the lower level of the top corporation management. His/
her task should be to set up goals, strategic planning, suggestion for alternative 
problem solutions, representation of corporation in the public through PR centre, 
directing and following activities of persons who are responsible for corporate 
security jobs in the company, incitement and encouragement of their professional 
development. 
 – Corporate security manager should coordinate and manage tasks of the security 
system and protection of persons, property and corporation business. In the man-
agement hierarchy of corporation, if in a company the function of security manager 
does not exist, he/she should be immediately subordinated to the head director, or 
to the majority owner.
 – If the corporate security director/manager does not succeed to ensure an unam-
biguous and transparent support of the leading company management, especially 
if it goes through the ownership transformation, it will not be able to carry out the 
planned activities, it will lose its identity and the business role. In order to make 
success, he must be a promoter of all security procedures and has to motivate the 
employees to follow them for a safer business environment.
 – It is necessary to have a permanent improvement of communication and an ad-
vancement of cooperation of managers and organizational units of corporate 
security in the companies with the competent state bodies and services, first of 
all in the area of the key infrastructure protection, prevention and elimination of 
accidents’ consequences, preparation and management of crisis and extraordinary 
situations, information exchange and similar.
 – Normative regulation is required as well as the establishment of cooperation of 
corporate and national security services in protecting corporations from industrial 
espionage and other types of external threat.
 – In order to have the corporation fulfill its business goals, it is necessary that all 
the factors, which represent a threat in the accomplishment of goals, are identi-
fied, prevented or reduced to a minimum. This procedure includes identification, 
analyzing, evaluation and processing of security threats (risks), as well as estab-
lishing the level of permitted vulnerability of economic resources, service infra-
structure and property, so as that the company would successfully implement its 
business strategy.
 – In corporations it is necessary to entirely implement the principles that emanate 
from international standards HSEC (Health, Safety, Environment Management, 
Community Relations) and BCCM (Business Crisis and Continuity Management), 
THE INFLUENCE OF CORPORATE SECURITY ON NATIONAL SECURITY 
96 Sodobni vojaški izzivi/Contemporary Military Challenges
and also implement the required standards ISO (International Organization for 
Standardization).
 – State bodies and institutions, by building of the unique security system and by de-
veloping the capacity of a society for crisis management, must enable a continua-
tion of economic and business activities of the community also in crisis conditions
(extraordinary situation, natural disasters, war conditions and other). In order to
have this realized, it is required to establish a normative, organizational and func-
tionally consistent security system which will enable a safer and more efficient
protection of persons, property and corporation business.
 – Rising of awareness of employees in corporation about the importance of preser-
vation of data must be the everyday care. In that regard, it is required to present
to the employees, by an unofficial communication or through seminars, what
damages may be produced due to loss of important information and how this can
reflect on them. One of preventive measures should be a periodical holding of
informative meetings on protection, aiming to refresh earlier gained knowledge
and to remind of the obligations in this sphere, as with the course of time the
awareness related to the importance of protection and the alertness and vigilance
towards the illicit activities is decreasing.
 – It is necessary to legally confine competencies, authorizations and duties of the
state and non-state security sector, especially with regard to the conditions and
ways of application of the means of force, and usage of operational methods and
means by which a person’s right to privacy is violated, as well as to administer the
way of performing security jobs.
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