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Business Ethics: Case 1 – Monsanto Attempts to Balance Stakeholder Interests
Melanie Brown
Liberty University: BUSI 472– B02
February 15, 2021
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The Monsanto Company is the largest seed company in the world, with sales over $15.9
billion (Ferrell & Fraedrich, pg. 382, 2016). The company’s area of expertise is in genetically
modifying organisms, or use of biotechnology. Their seeds are genetically modified (GM) to
survive weeks of drought, ward off weeds, and kill invasive insects. Monsanto’s GM seeds have
supported an increase in the quantity and availability of crops, thus helping farmers increase food
product and revenues (Ferrell & Fraedrich, pg. 382, 2016). While the outcomes seem positive,
review of Monsanto’s ethical culture to various stakeholders will be addressed. Next,
identification of both the pros and cons of growing GM seeds. Last, review on how Monsanto
should manage the potential harm to plant and animal life from using products like, their
Roundup.
Efficacy of Monsanto’s Ethical Culture
Prior to 2003 the Monsanto Company had earned the reputation of being a dishonest
company that left various stakeholders feeling uneasy. During the 1970s the company engineered
a chemical known as Agent Orange, which was used during the Vietnam War in effort to quickly
strip the jungles. Agent Orange contained a chemical, called dioxin, which was found to be
extremely carcinogenic. In 1979 a lawsuit was filed by hundreds of veterans who claimed harm
due to exposure. Monsanto will endure this repercussion for years to come (Ferrell & Fraedrich,
pg. 383, 2016). In the early 2000s it was revealed the company had been disposing of
polychlorinated biphenyls in the land field. This chemical was linked to deformed fish and
elevated levels being seen in the community. Unfortunately, this had been going on since the
1960s and was covered up by the company (Ferrell & Fraedrich, pg. 383, 2016). Yet again,
proving they were dishonest and not doing their due diligence in protecting the public.
Additionally, in 2002 an incident occurred in which an employee paid an Indonesian government
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official $50,000 towards a bid. The bid was to change a law in that country, that would require an
environmental impact study before planting modified crops. Going against the anti-bribery law,
worldwide (Thisdell, 2005).
In 2003, CEO Grant Hugh took over the business. The company was focused on fostering
an image and product line that reinforce new direction (Lamphere & East, 2017). About this
time, many global issues were on the rise about biotechnology. Monsanto quickly reacted with
change in documents to address these concerns worldwide (Lamphere & East, 2017). During this
time period, Monsanto implemented a new set of commitments and addressed them in their
‘Monsanto Pledge’. Negative environmental claims against the company receive a counterclaim
from Monsanto to question methodology being used. Any allegation of cross contamination of
crops from non-GMO farmers is being addressed through collaboration with Dow Chemical to
support crops being able to coexist. Monsanto has shown that they take action in addressing all
environmental and health concerns through maintaining their products are studied by the EPA
and approved (Ferrell & Fraedrich, pg. 386-387, 2016). In 2006 Monsanto revised their pledge to
‘Our Pledge’ which now reflects a human rights section (Lamphere & East, 2017). Over the last
18 years Monsanto has had a global discursive shift that has aligned with the changes in social
acceptance (Lamphere & East, 2017). These changes have allowed the company to maintain an
ethically driven culture that responds effectively to various stakeholders.
Costs and Benefits of Growing GMO Seed
Synthetic herbicides and pesticides were invented to ward off pest. Applying this process
to all crops was time consuming and costly. Through biotechnology, the Monsanto scientist were
able to implant these seeds with the genes that would have the same outcome farmers were
looking for. In addition, the company provides seeds that can upturn productivity by increasing
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crop yields without taking up more land (Ferrell & Fraedrich, pg. 384-385, 2016). Which, in
return, means more revenue for the farmer. A meta-analysis that was conducted on 147
agronomical studies showed farmer’s profits increase by an average of 68 percent, crop yields
rose by 22 percent, and expenses for pesticides declined by 39 percent when using GM seeds
(Lucht, 2017). In addition, it showed that farmers also reaped non-monetary benefits like time
savings, ease of use, and more flexibility in planning (Lucht, 2017). Some negative outcomes
stems from consumers with wanting awareness and knowledge about GM food due to it currently
being superficial through government regulations (Lucht, 2017). In other countries, like Europe,
more stringent regulations have been put in place that offer labels for more awareness to
consumers. Nongovernmental organizations, outside of the U.S., raise concerns to the threat
GMO products bring to biodiversity, farmer autonomy, and food safety. European consumers
lean towards a lower intention to purchase GM food compared to North American consumers
(Lucht, 2017). Consumers also worry about unexpected nutritional quality or allergenicity. Since
consumers do not have awareness or perceived direct advantage, the public will focus on the risk
side of the risk-benefit question (Buiatti & Christou, 2013).
Management of Harm to Plants and Animals
Monsanto’s product stewardship segment reflects their moral responsibility on potential
harm to plant and animal life. Safety measures like testing products to ensure they are compliant
with official regulations and performing extensive risk assessments are being completed. In
addition, they observe the import regulations and acquire the product approvals that are needed
in countries where products are being marketed. Their principals follow international recognized
standards through Food and Agriculture Organization of United Nations, CropLife International
specifications, and guidelines of the industry initiative Excellence through Stewardship (Bayer,
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2021). They are also committed to providing transparency about products to stakeholders and
customers to strengthen confidence in their products. Effects to bees are continuously undergoing
laboratory studies to confirm there is no risks being posed to bees, or other pollinators. In
addition, the company offers targeted training courses to teach farmers and dealers how to safely
handle their products in regard to human health and the environment.
In the last couple decades Monsanto has reshaped their ethical culture and maintained it
through their response from various stakeholders. There are many positives that GM seeds
provide that can outweigh the negatives of using them. Monsanto must continue to maintain their
sustainability efforts towards doing what is morally right in protecting plant and animal life from
potential harm of their products. Furthermore, God gave Adam and Eve a garden that was
perfect. Once Adam and Eve disobeyed, God told Adam in Genesis 3:17-18 that the ground
beneath him was cursed because of his choices. That the ground would bring thorns and thistles.
Today, plants and animals still suffer. GM seeds are one way that the Monsanto Company is
trying to counterbalance the effects.
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References
Bayer. (2021). Product Stewardship in Agriculture.
https://www.bayer.com/en/sustainability/product-stewardship-agriculture-farming.
Buiatti, M., Christou, P., & Pastore, G. (2013). The application of GMOs in agriculture and in
food production for a better nutrition: two different scientific points of view. Genes &
nutrition 8, (3), 255–270. https://doi.org/10.1007/s12263-012-0316-4
Ferrell, O. C., Fraedrich, J., Ferrell, L. (2016). Business Ethics: Ethical Decision Making and
Cases (11th ed.). Cengage Learning
Genesis 3:17-18. (2011). In The Holy Bible. NIV. Colorado Springs, CO: Biblica.
Lamphere, A. Jenna, & East, A. Elizabeth. (2017) Monsanto’s Biotechnology Politics:
Discourses of Legitimation, Environmental Communication, 11:1, 75-89, DOI:
10.1080/17524032.2016.1198823
Lucht, J. M. (2015). Public Acceptance of Plant Biotechnology and GM Crops. Viruses, 7(8),
4254-4281. http://dx.doi.org.ezproxy.liberty.edu/10.3390/v7082819
Thisdell, Glenda. "Time to kill off the bribe: the chemicals industry is not as clued up on anti-
corruption issues as some industries. This recently cost Monsanto $1.5m." ECN-
European Chemical News Business Insights: Global 31 Jan. 2005: 19. . Web. 14 Feb.
2021. Article can be used to support unethical issue of bribery & corruption from an
employee at Monsanto in 2002.
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Bayer. (2021). Product Stewardship in Agriculture.
https://www.bayer.com/en/sustainability/product-stewardship-agriculture-farming.
