FOURTH INDUSTRIAL REVOLUTION: THE ADOPTION OF CYBER-PHYSICAL SYSTEMS AND IMPACT ON THE CORPORATE COMPLIANCES Razia Sultana
T
he digital technology is an indispensable part of today’s social, professional as well as biological life. More specifically, the connected devices are capable to make communication easier in every aspect like office work / attend academic classes through video conferencing / Skype, catch a cab, online shopping, health check up and so on. Currently, businesses are strongly influenced to invest on latest information strategies in order to boost efficiency. Several researches reported that by 2019 maximum number of multinational companies (MNCs) will sponsor the utilization of the wearable fitness tracking devices for better corporate performance. Here it has to be noted that with the fast moving technological development the data protection regulations should also a prime concern to protect the risk of data misuse. Alternatively, after high profile data security breaches at AOL Inc., Sony, Yahoo, etc. the General Data Protection Regulation (GDPR) is now the first requirement of both business houses as well as existing and potential consumers. In order to enter into the GDPR, the European Commission already have issued the new laws and enforced from May, 2018 and all companies are now required to comply the processing of data for the EU citizens. On the other hand, over 11 states of the United Sates (US) have been introduced 21 privacy laws since constituents have failed to introduce federal rules and regulations. Fortunately, good news is that Companies have been taken considerable initiatives to adopt privacy laws in order to secure data through digital transformation. Besides data security, several changes of the fourth industrial revolution will be challenging and a snap of those are – Effect on the scope of employment – due to increase of automation there will be a significant effect on employment numbers and it will be inevitable that the nature of job and required skills to perform those jobs will change radically. A recent research reported that 60% of the existing job nature will become automated soon. Consequently, a large number of jobholder will have a need of finding new job along with to learn new
64 | October-December 2019
job skills and it will significantly effect on social inequality as well as unemployment. Moreover, legal reformation and its combination while partnerships with the government agencies, academia along with business houses will be required to ensure new scope of job opportunities and insufficient resources will harnessing those opportunities. New compliance challenges due to technological and commercial advancements – this has the potential risk to expose businesses because a particular role to contribute efficiently through automated modes but violation of anti-discrimination laws at workplace shall require human-based decisions. Conversely, with the advancement of first industrial revolution the Intellectual Property patronized innovation significantly and now at the commencement of a new industrial revolution protection of both the innovators along with the users of innovation is essential to ensure its successful growth. Challenges to protect the fundamental right to privacy – the new revolution in the law is in need of new developments in order to ensure the primary law and regulations and their effect on the companies to protect entire employees as well as companies data and what would be the stiff penalties for the non-compliant companies. Moreover, a uniform legislation system would be beneficial for a specific geographical area like EU. For example, in South Africa, the data protection law is enacted as the Protection of Personal Information Act (POPIA) and motto of the law is to – i) protect personal information of the common people, ii) ensure fundamental right to privacy in order to stop being hacking of individual ID as well as money from the bank account, etc. The prime objective of any legal reformation should be enough competitive so that the legislative framework would capable to take into account the changes brought by the new industrial revolution. Additionally, the newly developed markets as a result of the fourth industrial revolution should have sufficient scope to meet the increased need for the services of the legal as well as compliance profession.
