Case Description on Monsanto Company - Research Paper Example

Case Description on Monsanto Company Monsanto is one of the largest and leading American companies, but it has faced several key issues of addressing corporate social responsibility and public image. The company has received varied attention from the public because of several aspects. Monsanto is a large company that is dedicated to sustainable agriculture, but many people perceive their business moves as attacking other businesses. The company own varied patent rights to diverse genetically reengineered seeds, and many of them have become the major legal battles. The company is also at the forefront problems with genetically modified organisms in food. The company had been constantly attacked because of health concerns and company transparent. The media has been recently attacking the company because of their business practices that have raised public concern; thus impacting the performance of the company. Recently, there was an argument in the Supreme Court of America about cutting patent rights for the genetically modified seeds. The argument was between Bowman vs. Monsanto Company and the case was how Monsanto Company can control the Roundup Ready patent. Vernon Hugh Bowman, the Indian farmer presented the case to court arguing that he had discovered a loophole for a second and riskier crop in the growing season (Liptak 2013). Bowman argued that the Roundup Ready gene, which is a patent for the Monsanto Company was a threat to farmers. This patent was for the soybeans that the company patented, but it was also argued that the patent was likely to cause broader implications for many biotech products, as well as impact information technology products. The lawsuits over the patent rights for their seeds, which are distributed across the globe, were presented into the court. The farmer (Bowman) argued that Monsanto could not have sold their Roundup Ready soybeans to farmers because this patent and the progeny are exhausted (Mann, 2013). Additionally, the lawsuit pointed out every case that was presented to the court about Monsanto’s products. Many of the company’s patent dealt with varied issues affecting the company including the living organisms such as seeds, which sells replicates. Each case presented to the company contributed to another verdict; thus, it became apparent that some of the case rulings could impact the patent right of the company and humanity because of cloning effects. The company received a lot of pressure and this impacted their performance because it started producing little without caring the long-term impact on people. Customers stopped purchasing genetically modified seeds from Monsanto because of bad reputation of the company. This drastically contributed to fall of sales because of the troubles that the company was facing. For instance, the company fell from being one of the leading and best publicly traded companies across the globe, in 2010. This is because the company attempted to sell the premium products but they did not live up to the promised yield in corn crops. The company failed to show up their loyalty but a sense of being forced to buy products to continue business activities in own enterprises. The GMO (Genetically Modified Organisms) is one of the modified species that the company is presently producing in the market. These seeds are crop resistant because they can withstand bad weather, crop pests, weed and other hazards. This is one of the biotechnologies that have increased crop yields since it was invented, but the long-term impacts have not yet been recognized. However, some ecological risks have started evolving as the crop continues to intensify. Therefore, on November 6 2012, the Monsanto Company was again involved in proposition 37, which is a state law that attempted to pass laws regarding Genetically Modified Organism crops. Monsanto Company voted “No” to the statute because it is the largest business contributor; hence, this could impact their business. However, the safety of the food was emphasized, healthy food and integrity; thus, these results led to varied conception about what Monsanto has for their market. Therefore, the company appears to be worried about what reputation they are sending to the public. Background History of Monsanto Company Monsanto Corporation is one of the widely traded American international companies and it is headquarter is at Creve Coeur in Missouri. The business produces genetically engineered seeds that are marketed under Roundup brand. Monsanto is relatively a new business company, which was founded by John Francis Queeny, in 1901 (Monsanto, 2013), and was a major manufacturer of plastics in 1940s. It also became the leading mass producer of light emitting diodes and other products included Agent Orange, DDT and recombinant bovine products. The company is currently dedicated on supporting agriculture and farmers across the globe. Their mission is to product plenty agricultural commodities while conserving more in order to meet the needs of their clients effectively. The company announced a long-term contract to cooperate agricultural research, developmental activities and, marketing of a biotechnological plant, in 2007, and has tremendously improved in terms of performance level; thus, it was named among the top Canadian workers by Mediacorp Canada Corporation. The company is structured in two sections including the crop protection, as well as seeds and traits. Monsanto Company has also been placed among the top 100 best companies in the Fortune magazine because it is committed to sustainable agriculture. Ethical Issues Ethical concern is significant in any business; thus, Monsanto should ethically follow and raise awareness about their corporate environmental responsibility. Being environmentally and socially responsible is crucial in any organizations, but Monsanto has faced many problems and criticism for their marketing products. This is because their products contribute to serious environmental damage and yet the company claims to deliver sustainable agriculture commodities. For the past decades, the business produced a potent Roundup herbicide for weed eradicator, but this substance has a long-term impact on the environment. Therefore, the company need to be responsible for their techniques and be socially responsible for any activity they perform in order to maintain proper corporate image. Secondly, the company should find better genetic modified crops rather than Genetically Modified Organism, which have been known as the silent killer product. Even though the company aim to maximize profits, it is also crucial to take into consideration the health and safety of human beings. Crane and Matten (2010) argue that managing business and maintaining sustainability in the globalization age is crucial; therefore, Monsanto should ensure that they manage and ensure the safety of their clients in order to improve their business performance. Many companies have made attempt of utilizing technology with an aim of increasing profits but they forget that customers are the central and key towards increasing profitability; therefore, Monsanto should start adopting effective business practices and globally recognized best practices when it comes to sustainable management. References Crane, A., & Matten, D. (2010). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford: Oxford University Press. Liptak, A. (February 19, 2013). Supreme Court Appears to Defend Patent on Soybean. The New York Times. Retrieved on April 1, 20113 from http://www.nytimes.com/2013/02/20/business/justices-signal-a-monsanto-edge-in-patent-case.html?_r=0 Mann, R. (February 21, 203). Argument recap: Justices wary of cutting patent rights to genetically modified seeds. Scotusblog.com. Retrieved on April 1, 20113 from http://www.scotusblog.com/?p=159730 Monsanto. (2013). Company History. Monsanto.com. Retrieved on April 1, 20113 from http://www.monsanto.com/whoweare/Pages/monsanto-history.aspx Read More