Monsanto Attempts to Balance Stakeholder Interests

NATIONAL UNIVERSITY[pic 1][pic 2]

551 M.F. JHOCSON ST. SAMPALOC, MANILA

COLLEGE OF BUSINESS AND ACCOUNTANCY

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Monsanto Attempts to Balance Stakeholder Interests

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MAR144

Londonio, Ma. Felicia Mae

Palloc, Michelle

Penamante, Ma. Eloisa

Quenery, Robert John

Samsico, Ace Errol

San Pablo, Lorenzo Franco

Valenzuela, Carlos

Villalon, John

Dr. Redentor S. Mariano

Proffesor

A.Y 2017-2018

Second Semester

NATIONAL UNIVERSITY[pic 5][pic 6]

551 M.F. JHOCSON ST. SAMPALOC, MANILA

COLLEGE OF BUSINESS AND ACCOUNTANCY

TABLE OF CONTENTS[pic 7]

1. Company Background

1. Identification of Problem

1. Solutions to the Problem

1. Conclusion

1. Recommendation

COMPANY BACKGROUND

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Monsanto is an American multinational company founded in 1901 by John F. Queeny, It is the world’s largest seed company, with sales over $10.5 billion, famed for the use of biotechnology for genetic manipulation of organism in seeds and the world’s leading producer of herbicides, as well as producing 90% of the world’s genetically modified (GMO) seeds which aim to help farmers grow food more sustainably. It started as a supplier of saccharine, an artificial sweetener, which was sold to Coca-Cola. In subsequent years, the company expanded its production and include caffeine, aspirin, vanillin, and other chemicals. In the mid-1900’s, Monsanto Company changed its name to Monsanto’s Chemical Company and positioned itself as a high-growth “life sciences” company, focusing on food additives, chemicals, pharmaceuticals and  agricultural products.

On the heels of its success, Monsanto have been renovating their company several times through the years to fulfil the needs of the society. It is then when the company decided to sold its chemical business and purchased biotech firms and began aggressive development of genetically altered foods. The company moved into agricultural chemicals, introducing the herbicides and began to expand its agricultural products division

With the rise of the “new” Monsanto, the company’s conduct and doings has been exposed. They were accused of its legal, unethical practices and environmental and health concerns from biotech foods.

Ethics plays an important role in every company. These are the principles that guide how an individual or organization conducts activities. The public expects the individuals and organization to act in the best way possible and in the interest of all stakeholders, that’s why every action must have an ethics. Organization like Monsanto upholds the highest ethical standard that’s why it is difficult to implicate if they act ethically or unethically.

The stakeholders that benefits from the company are: Employees, Managers, Farmers, and its Consumers. Employees are people inside the company that follows the business’ operations and completing tasks given by the managers. They benefit from the company through the incentives and salary that was promised to them by the company. Managers are the ones who control and supervise how the employees operate its operations. They also benefit from the company through the promises that the company made for them. Farmers do the dirty work where they execute the plans of the owner of the company. They benefit mainly by having less worries of predators destroying their crops because the GMO has pesticides that would protect the crops from predators. Also, they benefit from GMO because these seeds do not need a huge amount of land to produce humongous quantity of crops. Lastly, the consumers benefit in GMO by consuming it. Although, there are consequences to the ones who makes direct contact to GMOs because it makes them risk their health and causes deformities for new born children.

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IDENTIFICATION OF THE PROBLEMS

1. Efficacy of Monsanto’s Ethical Culture
2. Legal Issues
3. Environmental and Health animosity towards Monsanto’s Products

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Problem 1                 Efficacy of Monsanto’s Ethical Culture

There are quite instances that reveal how Monsanto failed to act ethically with regards to its stakeholders. Ethics requires that an organization should have self-control (Kerns, 2003). This means that the company should not involve into actions for its own benefit. In Monsanto’s case, the company failed to maintain their ethical culture of which its stakeholders would approve. This is due to the fact that corporation has always been publicizing the benefits and positive outcomes without informing the public about the negative effects and the harm it can cause to the people and animals that consumes their products on a regular basis. In return, this unethical behavior showed by the corporation ruined their reputation making it extremely hard for the stakeholders to trust and invest to them, as well as the consumers, causing a big downfall to their sales/profit. Monsanto has always been involved in lawsuits over health and environmental issues related its products. Bribery is also one main problem that the company should address. One of the many cases Monsanto Company faced is bribery where one of its employees to paid an Indonesian official to cover up environmental studies being conducted on its cotton and had to pay $1.5 million fine. Monsanto also admitted to paying bribes to other number of other high-ranking officials.

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Problem 2                Legal Issues

        Agent Orange

Being a chemical that was produced by Monsanto for the U.S military during WW1, the orange-painted mixture caused a severe devastation to the Vietnamese jungles and people resulting to numerous lawsuits.

        Roundup

This contains glyphosate which was labeled by the World Health Organization as a probable carcinogen for humans who have been exposed to the herbicide. In effect, Domina Law Group has been investigating matters linking it to cancer.