Monsanto - Global Compact Submission - Case Study Example

Monsanto- Global Compact Submission Customer name Subject Name Here Instructor’s Name Here August 23rd, 2012 Monsanto- Global Compact Submission This submission contains our recommendations to the Local Network to support compliance of more organizations with the Global Compact principle four, which proclaims “the elimination of all forms of forced and compulsory labour” and principle eight that states “undertake initiatives to promote greater environmental responsibility” (The Ten Principles. Accessed 23/08/13). Monsanto was among the first companies to ratify the global compact 10 principles. Monsanto has continued to abide by the 10 principles and has taken every opportunity to advocate for more business to become more responsible global citizens by adopting the principles (Monsanto. Co 2011). As an agricultural multinational we have worked with communities in numerous countries and the recommendations we are forwarding to the Australasian local network contain the knowledge and experience we have gained from working with diverse cultures and regions in the world. We at Monsanto remain proactive in making sure that all our operations remain firmly aligned to the 10 principles (Monsanto. Co 2011). Through the Global Compact Principles (GCP), Monsanto is assisting communities in realizing the millennium development goals in the developing countries it operates in. Monsanto recommendations to the local area network are as follows: Recommendations for Abolishment of all types of forced and compulsory labor RECOMMENDATION I: Companies should make sure all their contractors engage in just labor practices We at Monsanto have ensured that every organization or individual farm we contract for our researches do not practice force and compulsory labor. In Africa we make sure migrant workers are justly compensated and are not forced to stay in the host country against their wishes (Monsanto. Co 2011). We also carry out training programs that educate workers about their rights and how they can voice their complaints. RECOMMENDATION 2: Companies should make sure their regularly audit there labor and management practices It would be an exercise in futility if Monsanto insisted its contractors engage in just labor practices while its own internal operations are riddled with exploitive labor practices. Even though Monsanto’s corporate policies leave little room for such practices, the company still carries routine appraisals of its management and labor practices to make sure they remain aligned to the GCP RECOMMENDATION 3: Before trading with any business partners they should ensure they adhere to acceptable labor and management practices. Monsanto uses a third-party verification approach to make sure all its trading partners have ethical labor practices. Third-party verification makes sure that occurence of conflict of interest and collusion in the making of such deals is minimised (Monsanto. Co 2011). Where a grower is found to be have questionable labor practices the results are reviewed and Monsanto responds immediately by suspending its dealings with suspected growers. Recommendations to undertake initiatives that promote greater environmental responsibility RECOMMENDATION 4: Promotion of agriculture that is less resource intensive At Monsanto we have developed products that enable farmers to become more environmentally responsible (Nyerhovwo and Omotor 2010). Our crops use less land and water compared to other alternatives. Monsanto continues to support efforts to enhance usage of these crops that prevent further degradation of the planet’s natural forest cover through cultivation and depletion of its water resources through irrigation (Monsanto 2011). We carry out numerous farmer training workshops on the need to use lesser land and water resources pointing out their impacts on the environment. RECOMMENDATION 5: Promotion of Responsible Usage of Pesticides We at Monsanto understand the effects pesticides have on the ecosystems; we have taken steps to reduce the residual effects of our chemical products on the environment. However, farmers still have to use some herbicides which have some negative environment effects but with proper usage the environment footprints of the pesticides can be significantly reduced (Monsanto 2011). Monsanto organizes workshops with farmers who use their pesticides to educate them on the proper usage and emphasis on the importance of the using the right quantities of products. In a similar manner companies which manufacture products with significant environmental footprints should strive to make sure their products are used properly to control their effects on the environment. Benefits to the Local area Network By adopting the recommendations discussed above members of the local area network will benefit in the following ways: 1. Better corporate image: companies who adopt the recommendations will be perceived as better corporate citizens whose concern for their customers go beyond profit making activities. 2. Larger market share: Companies perceived as “green” attract more customers as they know by trading with them they are not participating in environmental degradation or the exploitation of workers. Benefits to Stakeholders 1. Employees will be treated equally and justly compensated for their work. Employees enable a company realize its objectives, if a company adopts the recommendations discussed in these submission its workforce will be more satisfied and willing to co-operate in the realization of the company’s objectives. 2. Communities can continue benefiting longer from the resources nature has endowed onto them as the recommendations place less pressure on the environment. 3. Communities can experience better lives as the recommendations for promotion of environmental responsibility means the environment will be conserved and the community can continue benefiting from its natural resources for many generations to come Challenges and Implications Although the recommendations provide a number of benefits as discussed above to the local area network and other key stakeholders they could be faced by a number of challenges. Labour practices recommended in the report imply that some organizations have to pay their workers more. Most organizations are reluctant to adopt any policies that push their expenses up. Secondly, recommendations 5 imply that producers have a larger say in the usage of products already in the possession of consumers. However, consumers have deeply formed opinions over the usage of products in their possession and it is still hard to persuade a consumer to use a product in an environmentally responsible manner. Thirdly, the need to run background checks on the labor relations of business partners implies that the length of time needed to complete transactions will increase significantly. This presents a huge challenge as most companies prefer not to interfere with their supply chains if they think their current process is running smoothly. Even though the process of implementing the recommendations discussed above has a few challenges, we at Monsanto believe their implementation will contribute immensely to the realization of principles four and nine of the GCP. References Nyerhovwo, Tonukari and Douglason, Omotor. 2010. “Biotechnology and food security in developing countries.” Biotechnology and Molecular Biology Reviews 5 (1): 13-23. Monsanto.Co .2011, Corporate Social Responsibility and Sustainability Report 2011. http://www.monsanto.com/SiteCollectionDocuments/CSR_Reports/2011-csr.pdf Gershon, Diane. 1997. "Monsanto Reinvents itself After 95 Years." Nature 387 (6631): 433-434. http://search.proquest.com/docview/743609883?accountid=10382. The Ten Principles. http://www.unglobalcompact.org/aboutthegc/thetenprinciples/index.html Accessed 23/08/13. Read More