Monsanto Company Business Ethics Issues - Case Study Example

Monsanto Name: Unit: Course: Supervisor: Date of submission: Introduction Monsanto is the largest seller of genetically modified (GM) seeds, it accounts for 90% of GM seeds sold across the globe and has a market share of 70-100% in some of GM products such as soybean (Saywada, 2011). However, the company has been surrounded by many controversial issues that surround its activities and products (Saywada, 2011). This paper outlines history of Monsanto and discusses ethical issues surrounding the company. History Monsanto was founded in 1901.The first product of the company was a natural sweetener saccharin that was sold to Coca-Cola company. Monsanto experienced remarkable growth and in 1913, it expanded to chemical industries due to the growth prospects and changed its name to Monsanto chemical company. Monsanto expanded products line which saw it being renamed Monsanto Company in1964. The products line then included petroleum, fibers and packaging. After some years, the company produced roundup herbicide, which was very successful and propelled the company growth (Saywada, 2011). In 1970s the company produced a chemical called Agent Orange that was used to deforest the Vietnamese jungles during Vietnam War. The chemical was found to contain dioxin that was carcinogenic and led to a major legal obstacle for the company. Monsanto Company with other manufacturers agreed to settle this with 180 million compensation. The repercussions were great for the company and in 1981, it refocused to biotechnology. In 1994, Monsanto Company introduced agricultural biotechnology in 1994 that won regulatory approval. The company then embarked on seeds of soybean, canola that were tolerant to Monsanto Roundup herbicide. Sine venturing into agricultural biotechnology, it has remained to enjoy monopoly in GM seeds (Saywada, 2011). Monsanto case Monsanto has a history of controversy. Since the manufacture of the first product natural sweetener, there have been ethical issues surrounding its major products such as, Agent Orange and herbicides. The company has continued to enjoy monopoly in genetically modified seeds that use Roundup herbicide that is also produced by Monsanto. Monsanto is involved in charitable activities and practices that are aimed at enhancing its corporate social responsibility. Despite of the charitable works the company has been criticised for being more profit oriented and disregarding health issues, environment and biodiversity (Saywada, 2011). GM seeds have been termed as a means to increasing crop production to feed the growing world population. There have been arguments for and against GMs. There are no concrete scientific evidence of the harmful effects of GM seeds, critics base their argument on the controversial history of the company and its record of disregarding ethical issues. For instance, critics argue that the monopoly the company has been enjoying in provision of GM seeds is an attempt to control foods supply across the globe and the introduction of genially modified food that that has the potential of destroying the ecosystem. The company statistics point that, GM seeds have increased yields and revenues of farmers in developing countries such as production of cotton in India. In addition, farmers who produce the seeds are able to grow crops on less land (Saywada, 2011). The greatest fear of scientists is that the GM crops may have potential spread their traits to native plants (Kay & Drake, 2008) Ethical issues Despite of the many issues raised against Monsanto the company has responded to critics that it carries environmental impacts for its products. However, there are still many ethical issues that have continued to surround the company. Bribery Monsanto has been involved in bribery issues, in 2002, it authorised a bribe worth $50, 000 to an official in Indonesian environment ministry which was supposed to allow bypass of environmental assessment study (Saywada, 2011). This implies that the company has not endeavoured to develop the trust of customers based on integrity issues. Patent issues The seeds of the company are patent. However, the farmers using the seeds are not allowed to harvest them and reuse for planting in next season. The company requires the farmers to purchase new seed, which is a means of ensuring profits (Saywada, 2011). Corporate responsibility and charity Monsanto was ranked 31 out of 100 companies by Corporate Responsibility Magazine in 2010. This was improvement from 81 in previous year (Saywada, 2011). Corporate responsibility of Monsanto is based on enhancing lives of the of farmers. However, the comp-any has been found to be more oriented to shareholders and employees and has does not really taken more considerations on issues that concern customers. Environmental issue and sustainability Monsanto has been long accused of environmental violations. The reputation of the company was put at stake in 2003 after been found to be contaminating ground water. GM seeds are claimed to produce more yield, however, they are not aligned to sustainable environmental practices which encompass caring of the future. Question 1 Ethical culture entails in engaging in practices that are regarded good for human kind (Edward, 2010). It entails manifestation of humanism by creating meaningfulness in lives of people. According to Edward (2010) ethics entails values and standards that guide entities in running their processes. Even though Monsanto has maintained that its main mission is to improve crop yield through biotechnology, the processes it has used to gain market and effects of its products have had, there are many concerns that are contrary to ethical culture. Since 1901 the company has failed in establishing an ethical culture. The company has concentrated on profitability and has had the products accepted based on bribery. For instance 2002, Monsanto was accused of bribing an official in Indonesia to grant a pass which ensured that environmental impact assessment was not done. In 2003, the company was found guilty of practices that polluted underground water for decades by courts in Anniston. This was found to affect over 20,000 residents and the company was obligated to compensate the resident for $ 700 million (Saywada, 2011). Earlier, in 1970 it produced Agent Orange that was used during the Vietnamese war to clear jungle. This product was later found to be carcinogenic due to high levels of dioxin. The company has not ethically met the needs for stakeholders as it has engaged in maters that have hurt the key stakeholders. Question 2 GM seeds have been a subject of debate. Pro- scientists have argued that GM seeds are solution to the issue of food shortages while other have argued on negative implication to the environment and sustainability. The main advantage of GM seeds is increased yield. Biotechnical modifications of seeds give resistant to pests and drought and hence serve as a solution to changing climatic conditions of unreliable rains for crop rising (Miller, 2009). Through modifications, the nutrient value of the crops can be increased which help in meeting the needs of the populations. This has been cited as advantage to developing countries that do not have adequate resources to meet nutritional needs (Miller, 2009). Disadvantages Genetically modified seeds have been considered as dangerous. They have been associated with allergic reactions (Kay & Drake, 2008). Studied conducted have pointed to potentiality of damaging intestines, tumour growth and allergies. In addition, Scientists argue that GM seeds could pass traits to native plants which could irrevocably lead to damage the environment. The GM seeds are modified with herbicides and pesticides, if proper farm use is not followed, they can become resistance (Kay & Drake, 2008). Question 3 Monsanto has the mandate to carry out more research on the issues that surround the Roundup. Through intensive research on the products and exposing it different study environments, Monsanto will be in position to establish the environmental impacts of the product. This will gauge the resistant that pest are likely do develop and hence Monsanto can engineer products that will not require the usage of roundup. Based on sound research the company will be able to train farmers on farm practices that avoid the development resistance. Conclusion and Recommendations GM seeds have been gaining popularity around the world. Some countries have adopted them as a measure to boost food security while others are still weighing options. Monsanto boasts of supplying 90% of the worlds GM seeds and has been enjoying a market share of over 70% on certain GM seeds such as soybeans (Saywada, 2011). Despite of this market presence, the company has been faced with a lot of criticism that relate to the use of GM seeds (Miller, 2010). The issue of resistant, environmental sustainability and effects on human beings are key areas of concern. To avoid negative implications, Monsanto should invest on research on the GM seeds and how they can be integrated with the natural environment without causing harm. The company should also train farmers based on research to avoid negative consequences such as that of resistance to herbicides. In matters relating to ethical culture and responsibility, there should be legislation that will ensure Monsanto complies with set standards and moral requirements that guide other multinationals. There should be oversight by regulatory authorities on the performance of the company products as it operations directly affect global community. Furthermore, key stakeholders should demand value from the company. The government regulatory body should put a policy that ensures that the company activities are monitored. References Saywada, J. (2011). Monsanto attempts to balance stakeholder interests. Case Study Edward, E.. (2010).The humanist way: an introduction to ethical culture. New York: American Ethical Union. Key, S. and Drake, P. (2008). Genetically modified plants and human health. Journal of Research Medicine 101 (6), pp. 290-298. Miller, h. 2009. A golden opportunity squandered. Trends in biotechnology 27 (3), pp. 129-134 Miller, J. (2010). Monsanto loses case in Europe over seeds. The Wall Street Journal, 1 (1). Read More

GM seeds have been termed as a means to increasing crop production to feed the growing world population. There have been arguments for and against GMs. There are no concrete scientific evidence of the harmful effects of GM seeds, critics base their argument on the controversial history of the company and its record of disregarding ethical issues. For instance, critics argue that the monopoly the company has been enjoying in provision of GM seeds is an attempt to control foods supply across the globe and the introduction of genially modified food that that has the potential of destroying the ecosystem.

The company statistics point that, GM seeds have increased yields and revenues of farmers in developing countries such as production of cotton in India. In addition, farmers who produce the seeds are able to grow crops on less land (Saywada, 2011). The greatest fear of scientists is that the GM crops may have potential spread their traits to native plants (Kay & Drake, 2008) Ethical issues Despite of the many issues raised against Monsanto the company has responded to critics that it carries environmental impacts for its products.

However, there are still many ethical issues that have continued to surround the company. Bribery Monsanto has been involved in bribery issues, in 2002, it authorised a bribe worth $50, 000 to an official in Indonesian environment ministry which was supposed to allow bypass of environmental assessment study (Saywada, 2011). This implies that the company has not endeavoured to develop the trust of customers based on integrity issues. Patent issues The seeds of the company are patent. However, the farmers using the seeds are not allowed to harvest them and reuse for planting in next season.

The company requires the farmers to purchase new seed, which is a means of ensuring profits (Saywada, 2011). Corporate responsibility and charity Monsanto was ranked 31 out of 100 companies by Corporate Responsibility Magazine in 2010. This was improvement from 81 in previous year (Saywada, 2011). Corporate responsibility of Monsanto is based on enhancing lives of the of farmers. However, the comp-any has been found to be more oriented to shareholders and employees and has does not really taken more considerations on issues that concern customers.

Environmental issue and sustainability Monsanto has been long accused of environmental violations. The reputation of the company was put at stake in 2003 after been found to be contaminating ground water. GM seeds are claimed to produce more yield, however, they are not aligned to sustainable environmental practices which encompass caring of the future. Question 1 Ethical culture entails in engaging in practices that are regarded good for human kind (Edward, 2010). It entails manifestation of humanism by creating meaningfulness in lives of people.

According to Edward (2010) ethics entails values and standards that guide entities in running their processes. Even though Monsanto has maintained that its main mission is to improve crop yield through biotechnology, the processes it has used to gain market and effects of its products have had, there are many concerns that are contrary to ethical culture. Since 1901 the company has failed in establishing an ethical culture. The company has concentrated on profitability and has had the products accepted based on bribery.

For instance 2002, Monsanto was accused of bribing an official in Indonesia to grant a pass which ensured that environmental impact assessment was not done. In 2003, the company was found guilty of practices that polluted underground water for decades by courts in Anniston. This was found to affect over 20,000 residents and the company was obligated to compensate the resident for $ 700 million (Saywada, 2011). Earlier, in 1970 it produced Agent Orange that was used during the Vietnamese war to clear jungle.

This product was later found to be carcinogenic due to high levels of dioxin. The company has not ethically met the needs for stakeholders as it has engaged in maters that have hurt the key stakeholders.

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