Chapter 9: Terrorism and Business

The recently created Office of Homeland Security, located in the Executive Office of the President, has overall responsibility for developing governmentwide policies on enhancing the nation's domestic security. At least for a while, the struggle aginst international terrorism has become the number one priority among federal government programs and activities. The larger role for government is taking many forms: increased military spending, unprecedented emphasis on homeland security, special assistance to companies heavily ulation of private activities, especially business. However, what is Terrorism? Terrorism is the deliberate and systematic murder, maiming, and menacing of the innocent to inspire fear for political ends

Involves a violent act or anact dangerour to human life, property, or infrastructure; Appears to be intended

• to intimidate or coerce a civilian population
• to influence the policy of a government by intimidation or coercion;
• to affect the conduct of a government by mass destruction, assassination, kidnapping, or hostage-taking

The Treasury Department has directed these private companies to do many things

• to conduct more "due diligence" investigations of account holders, especially private banking clients, to make sure they are not terrorist groups.
• to set up anti-money laundering programs - or to expand their existing efforts - in order to prevent the conversion of illegal funds into legitimate financial accounts.
• to report "suspicious" activities to the Treasury Department.
• to cease transactions with "shell banks" that have no physical presence in any country.
• to gain more information about the foreign banks that they do business with.
• in the case of hedge funds, not to accept money from anonymous sources.

The first role of business in the struggle against terrorism is helping to cut off the money flows to the terrorists. Business also designs and produces the antiterrorist equipment and systems used by both the public and private sectors. Business develops and produces the medicines and the related equipment used to respond to biological and chemical attacks. In its overseas activities, private enterprise helps bolster the economies of the nations that are America's allies in the struggle against terrorism.
The most indirect role of business may be the most powerful-to maintain the flow of goods and services to consumers and, in the process, to generate the jobs incomes, and taxes that keep the economy moving ahead and the government adequately financed. Heightened security measures are basically an expense. a bigger outlay for these overhead items raises the cost of production. Many companies who have been producing for conventional markets are adapting their products to meet the rapidly rising demand for antiterrorist equipment. Domestically, some companies are decentralizing their operations to avoid excessive concentration of resources in one highly visible and vulnerable headquarters office.
The struggle against terrorism is being waged on two fronts. the forst is the most bovious: Government forces, military and civilian, directly fight the terrorists and their networks. The second front is also vital, especially in a long struggle.

Source:Business and Government in the Global Marketplace (7 edition Murray L. Weidenbaum)