Case Assignment 1
Monsanto Attempts to Balance Stakeholder Interests
Nhu Nguyen
Liberty University
Running Head: MONSANTO ATTEMPTS TO BALANCE STAKEHOLDER INTERESTS1
MONSANTO ATTEMPTS TO BALANCE STAKEHOLDER INTERESTS 2
Monsanto attempts to balance stakeholder interests
Introduction
Sustainable agriculture has remained a hotly debated topic for some time. One of the
representative companies for this category is Monsanto. Established in 1901, it has been
evolving constantly, such as diversifying its line of chemical products to petroleum, packaging
and many more (Monsanto, 2014). However, the company has been facing many legal problems
recently because of its chemicals, following its herbicide development. Plus, the company has
been criticized for releasing potentially harmful environmental effects in relation to its herbicide.
Subsequently, due to multiple legal, bribery and patent issues, Monsanto’s ethics are
questionable (Ferrell, Fraedrich, & Ferrell, 2015). In order to correctly determine the ethical
nature of the company, the genetically modified (GM) plant seeds’ advantages and the risk
management must be analyzed. The GMO seeds are considered the best selling product of
Monsanto. Thus, addressing the process of growing these seeds after closely examining the
company is highly recommendable.
Efficacy of Monsanto’s Ethical Culture
Thanks to innovative technology and entrepreneurship, the company has been enjoying
its appealing culture. As the official website of the company has stated, Monsanto is devoted to
encouraging its farmers to optimize and produce more from their land and resources while
paying close attention to water and energy conservation (Monsanto, 2014). Though the
company’s culture and vision is praise-worthy, Monsanto’s ethical culture is under the public’s
scrutiny. In light of various controversies and criticism, the company decides to take
responsibility to account for the interest of shareholders and embrace ethics. According to Jacqui
Fatka (2011), ever since the issue of possible harmful effects of company products and
MONSANTO ATTEMPTS TO BALANCE STAKEHOLDER INTERESTS 3
substances arose, Monsanto has been reassuring the general public that no damage has been
committed environmentally, and the company always takes the Environmental Protection
Agency ‘s reviews seriously (Fatka, 2011). The company continues to be put in a tight spot due
to the discovery of illegal company bribery and misbranding violations. Consequently, Monsanto
has to uphold ethical behavior and take the blame for its employees’ unethical actions (Robinson,
2010). As the agricultural resources have been depleting, Monsanto has invested in a policy with
an aim to “produce more yields in crops, conserve resources, and improve the lives of farmers”
(Ferrell, Fraedrich, & Ferrell, 2015). Thus, this leads to the development and growing of
genetically modified plant seeds. Ultimately, the company hopes that with the new agricultural
creation, it can offer sustainable agriculture multi-nationally.
Costs and Benefits of Growing GMO Seed
Because of Monsanto’s passionate investment in the field of biotechnology, the birth of
genetically modified plant seeds is assured. Hence, this scientific discovery has created an
agriculture industry revolution. Just like any other scientific invention, GMO seeds and products
have been the subject of debate for decades with one advocating its benefits whereas another
criticizes its cost. Monsanto has managed to pass the knowledge and convince farmers and
customers that better crop yields can be obtained through the use of the company’s newly
developed technological creation. While many have accepted the new equipment, others have
given the company the benefit of the doubt. It is stated in “Monsanto and the Requirement for
Real Risks in GM Food Regulation” that there are individuals who point out the potential health
risks associated with chemically modified food consumption (Fernandez, 2006). According to
the GMO opposition faction, farmers will be less financially compensated since GMO seeds are
more costly than regular plant seeds. Another reason to watch out for GMO seeds is that
MONSANTO ATTEMPTS TO BALANCE STAKEHOLDER INTERESTS 4
chemicals, such as glyphosate, might be added. According to the Chairman of Monsanto, Hugh
Grant, Glyphosate, an ingredient of Monsanto’s Roundup, allows the company to “boost
Roundup production capacity by 20% and help minimize the impact on the environment by
reducing the carbon footprint and scaling back the energy use” (“Monsanto company,” 2010).
However, continuous exposure to pesticides and herbicides may result in insects and weeds
building up resistance to the chemicals. Nevertheless, these are only potential risks that need to
be watched out for. As the Food and Drug Administration (FDA) has declared, all GM products
are still approved as safe to consume (“Monsanto and Posilac,” 2008). Potential harms and risks
aside, by growing GMO seeds, GM crops have yielded more and increased farmers’ resources
optimization. In other words, farmers will be more benefited since they are now capable of
producing more crops with less land. In Business ethics: Ethical Decision Making and Cases, the
authors have affirmed that the development of GMO seeds has enabled humanity necessities to
be met more easily (Ferrell, Fraedrich, & Ferrell, 2015). Additionally, Monsanto has declared
that since it is following regulations and guidelines of appropriate authorities, there is little
chance of possible damages to the ecosystems and its habitants (Fatka, 2011).
Management of Harm to Plants and Animals
Contrary to its claim of not damaging the environment, Monsanto’s adventurous
technological and agricultural inventions are speculated to cause harm and possible death to
animals. An example of these technological advancements is “Roundup Ready.” There are also
speculations about the harmful domino effect or chain reaction, meaning the GM seeds which are
spread to native plants, might cause the plants to adopt the GM traits. Subsequently, new genetic
plant types can affect the ecosystem negatively (Ferrell, Fraedrich, & Ferrell, 2015). Surely, this
potential outcome will give consumers second thoughts about purchasing GM products. To be
MONSANTO ATTEMPTS TO BALANCE STAKEHOLDER INTERESTS 5
more specific, risks will come in all shapes and sizes. For instance, if the newly genetically
infected plants continue to grow, the ecosystem that is crucial to human survival will be
hazardously altered. Hence, humans’ lives will be critically impacted for they depend on the
resources of the environment. In spite of these alarming flags, Monsanto still calmly confirms
that the EPA has approved of the company’s creations. According to Jacqui Fatka (2011) in
“EPA Questions Monsanto’s Biotech Seed Monitoring,” the company says that “Roundup
Ready,” will be carefully supervised to prevent the substance from approaching ground water to
cause contamination and risks to natural habitants. Furthermore, Monsanto has already been
working to support the adoption of best management practices (Fatka, 2011). Taken the
controversial debate about Monsanto’s unethical practices into accounts, it is high time that the
company improved its management of chemicals to avoid prospective harms to plants and
animals.
Conclusion
It is undeniable that Monsanto’s dedication to advancing agricultural technology is
commendable. However, it is highly likely that the company will continue to be under criticisms
and opposition just like it has been. While its proactive nature has brought about new inventions,
its ethical field is still questionable. As a result, the efficacy of Monsanto’s ethical culture has
been tested after multiple organizational ethical issues. Another strike is the opposition from
critics when it comes to GMO seeds. Nonetheless, the textbook says that Monsanto manages to
ease its shareholders and consumers by addressing the issue accordingly (Ferrell, Fraedrich, &
Ferrell, 2015). Last but not least, in order to avoid harm to plants and animals, it is essential that
the company conducts effective research regarding a system to manage and prevent chemical
outburst into the environment.
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References
Fatka, J. (2011). EPA questions Monsanto's biotech seed monitoring. Feedstuffs, 83(51), 4.
Fernandez, R. (2006). Monsanto and the requirement for real risks in GM food regulation.
Loyola of Los Angeles International and Comparative Law Review, 28(2), 335-350.
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2015). Business ethics: Ethical decision making and
cases (10th ed.). Stamford, CT: Cengage Learning.
Monsanto and Posilac. (2008). The Food Institute Report, 81(32), 6
Monsanto. (2014). A Sustainable Agriculture Company. Retrieved 14 January 2016, from
http://www.monsanto.com/pages/default.aspx
Monsanto company: Monsanto announces completion of glyphosate plant expansion at luling.
(2010). Agriculture Week, 192.
Robinson, E. (2010). Monsanto fined for misbranding violation. Delta Farm Press, 1.
