Monsanto Attempts to Balance Stakeholder Interest

A Case Analysis
Presented to the Faculty of the National University
College of Business and Accountancy

Submitted by:

Aduca, Allyanna

Benito, Amino

Doromal, Roma Joy

Mercado, Raimiel

Santos, Kattelyn

Tapire, John Amiel

Timbal, Rochelyn

Yabut, Christel

MAR143

Submitted to:

Mr. Mariano
Professor

December 12, 2017

Introduction

Monsanto started around 1901 when John F. Queeny founded a company that could

produce saccharine at one-sixth the cost of sugar. He named the company after his wife, Olga

Monsanto Queeny. The company was into making of artificial food additives before. Its first

product was the artificial sweetener, saccharine. Until the start of WWII, the company saw an

opportunity in chemicals industry. They specialized iin plastics, its own agricultural chemicals

and synthetic rubber. In the 1940s, Johns son Edward Queeny saw an opportunity to enter

the agriculture industry. The first agricultural product introduced by this Monsanto was an

insecticide called Santobane. The company soon expanded to provide fertilizer for farmers as

well, though the current Monsanto no longer sells this product. They specialized iin plastics,

its own agricultural chemicals and synthetic rubber. In 1964, Monsanto was expanding

because of its product lines. It produced diversed products such as petroleum, fibers and

packaging. They also created its first round up herbecide, which was very successful and it

led to gain more public awareness.

Through the years, Monsanto was very successful. But there were lots of criticisms,

issues and cases against them. Inspite of these, the company is still doing its best to be

globally competitive. Today, monsanto is the world's largest seed company. It specializes in

biotechnology or genetic manipulation of organism. As we go through the case, we will find

out the problems, challenges and struggles faced by the Monsanto and what are the possible

solutions and actions that they need to take in order for them to solve the problems.

Objectives

To identify the different problems Monsanto encountered.

To discover what happened after they adopt biotechnology.

To provide specific solution to use in battling with criticism that the company encounter.

To learn what strategies to use to make the business successful.

Problems

Does Monsanto maintain an ethical culture that can effectively respond to various

stakeholders?

Compare the benefits of growing GMO seeds for crops with the potential negative

consequences of using them.

How should Monsanto manage the potential harm to plant and animal life from using

products such as Roundup?

Solution

Does Monsanto maintain an ethical culture that can effectively respond to various

stakeholders?

The Monsanto Company faced some problems in their existence. The

subsidiary of Monsanto at Indonesia filed an Internal Investigation and reported it to

the U.S Department of Justice and Securities and Exchange Commission to spot-on

the irregularities and bribery inside the company. In the said problem, Monsanto will

take the full responsibility for its employees and on the other hand it will help the

American authorities to correct them. Monsanto Company commits that they will

provide the public advancement of their interest and well-being. They will give

developing countries a million of dollar to help them to improve. Monsanto will put up

a fund for the researching for new farmer tools in order to improve the lives of the

farmers and to conserve more resources because it will boost the production in yielding

crops. It also partners itself to some of non-profit organizations around the world in

improving lives of developing countries specifically the farmers from India and Africa.

Monsanto are trying to help to prosper the lives of the farmers and funding those

students who are taking up agricultural-related courses. Children was being included

in the program in which they will give a proper education and teaching them the proper

hygiene to keep out from diseases that the Brazilian children encountered. For the

patent issues, in order to prevent its occurrence. Monsanto was planning to create a
 new seed in the future which is called sterile seeds. Sterile seed are non-bearing

seeds that will lessen the genetic diversification.

The Monsanto Company has not maintained an ethical culture of which its

stakeholders would approve. This is owed to the fact that the corporation has not even

come clean about the negative effects that their products could have on the people

and animals that consume their products on a regular basis. The Monsanto Company

has deliberately kept quiet about the risks that are involved with the usage of their

products but have always been sure to publicize the benefits that their products create.

In turn, this has ruined the Monsanto Companys reputation, making it extremely hard

for anyone to trust the entity, including all of its stakeholders.

Compare the benefits of growing GMO seeds for crops with the potential negative

consequences of using them.

Monsantos genetically modified products produces plants that can survive

weeks of drought, ward off weeds and kill invasive insects. It helps farmers to increase

their production and revenue. On the other side it is believed to have harmful effects

to human health because of the glyphosate exposure. To eradicate the issue regarding

this, Monsantos researchers and scientists can go further and study the components

of the Genetically Modified products. Researchers can go on with their further

research, discovery and experimentation to think of new components for the products

that are safer, cheaper and effective as well. To make this possible, Monsanto should

increase their funds in researching new farmer tools. Being able to care and have

concern to all the stakeholders of the company will make them more successful.

Farmers are the customers of Monsanto. They are also stakeholders of Monsanto

therefore they should be treasured.

The genetically modified seeds that the Monsanto company markets benefits

the farmers who have the tendency to use them. For instance, Monsantos genetically

modified seeds allow farmers to effectively plan during their harvesting seasons. The
 companys genetically modified seeds are made with their own supply of pesticides

that ward off predators that are known to desecrate a farmers crop yield. Having this

barrier to protect their crops from being eaten by predators, farmers are presented with

a little bit more security than when they use regular seeds. Another benefit that the

genetically modified seeds provide the farmers who use them are the amount of space

that is required to cultivate such plants that extend from the genetically modified seeds.

Unlike that of traditional seeds, the genetically modified seeds do not require a

tremendous amount of yardage for a farmer to grow his or her own crops. In addition,

such genetically modified seeds do not require perfect weather conditions in order to

work. Typically, farmers need the sun and ample amounts of rain in order for their

seeds to produce a sufficient amount of crops so that they could support themselves.

Thanks to the composition of which the genetically modified seeds are made, farmers

could make money all year-round, in spite of their settings and/or climates.

But in spite of all of the benefits that the Monsanto Companys seeds provide

farmers, the corporations seeds are known to injure the health of those who consume

them. The chemicals and pesticides that the Monsanto seeds are laced with have been

known to sicken the people and animals that ingest the products.

How should Monsanto manage the potential harm to plant and animal life from using

products such as Roundup?

The protection of the environment in the organizations mission establishing a

clear mission will help a company to align its actions and decisions to the purpose of

the organization. As can be seen in the actions of Monsanto their products were not

environmentally friendly as it kills tadpoles in the wild, poison birds and insects. As well

as contaminate the environment. To limit the issue regarding the negative

environmental effects of Monsantos Products, the company can incorporate the

 protection of the environment in their organizations mission to remind them in the

conservation of the environment and to create environmentally products to people.

It is important for the Monsanto Company to manage the potential harm that is

likely to occur within the plants and animals who consume the companys Roundup

product by informing the public of all of the side effects that have the ability to arise.

Up until this point in time, the company has been looked down upon due to the fact

that they continue to fail to inform the general public of the consequences of using the

products that it sells and endorses. Coming clean about these projected side effects

could ultimately improve the reputation that the Monsanto Company has with the

general public along with its stakeholders.

Conclusion

Recommendation

Researchers can go on with their further research, discovery and experimentation to

think of new components for the products that are safer, cheaper and effective as well. To

make this possible, Monsanto should increase their funds in researching new farmer tools.

Being able to care and have concern to all the stakeholders of the company will make them

more successful. Farmers are the customers of Monsanto.

Reference

https://www.coursebb.com/2017/01/04/case-study-monsanto-attempts-balance-stakeholder-
interests/
https://www.coursebb.com/2017/01/15/case-study-monsanto-attempts-to-balance-
stakeholder-interests-question-answers/
https://m.youtube.com/watch?v=bYcn8KOJMuM
https://m.youtube.com/?reload=7&rdm=2y3w6u337#/watch?v=ECGEXu89voo
https://m.youtube.com/watch?v=ECGEXu89voo
https://m.youtube.com/watch?v=0qMh9jJk4fQ
https://m.youtube.com/watch?v=nHrqRRDY2HU
https://m.youtube.com/watch?v=DWI8xR0FsOk
https://m.youtube.com/watch?v=sfalu1OUJs4