Monsanto Case

In: Business and Management

Submitted By grosso5118
Words 612
Pages 3
Case 1
1. There are several ethical issues in this case. The first issue is the most significant, the alteration and manipulation of crop seeds and its effect on humans and the environment. Although the seeds lead to higher crop yields, they have not been sufficiently tested on humans and we have no idea what effects they could have on human health. More specifically, the issue of allowing seeds to produce their own insecticide and the harm that ingesting glyphosphate, even in small amounts, could have on humans and animals. Currently, farmers do not have to show when food is genetically altered on food labels, so individuals may not know they are consuming these products. Through cross-pollination insects can easily carry the seed genes to other plants and create weeds that are pesticide resistant and uncontrollable. The second issue in this case concerns the patenting of Monsanto’s products and preventing fair competition. Monsanto requires farmers to purchase new seeds every year and can also sue farmers whose crops are contaminated through cross-pollination. Their actions have already gained the attention of the American Antitrust Institute and the Department of Justice for anticompetitive activities. Third, Monsanto has already been prosecuted for bribery in foreign countries and dumping of toxic chemicals in Alabama. They may be participating in more illegal and unethical practices to ensure their products use in new markets. Lastly, it seems the company is continually working on increasing profits without focusing on the possible harmful effects their products could have, the sustainability of crops, and that their farmers are producing sufficient profits for themselves with the increasing cost of using genetically modified seeds. This ethical culture is clearly not what stakeholders expect out of a company that they invest their money in.

2.…...

Similar Documents

Monsanto Balances Environmental & Ethical Factors Case Study

...UNIT 2 COMPLETION QUESTIONS: Monsanto Balances Environmental & Ethical Factors   CASE SUMMARY: Summarize the key facts of the case in a paragraph. Monsanto Company is the world’s largest seed company specializing in biotechnology or genetic manipulations or organisms (Ferrell, Gatewood, Gatewood, & Taylor, 2010). Scientist of Monsanto spend numerous hours modifying crops, inserting new genes or adapting existing genes within plant seeds, to meet certain aims; for example, higher crop yields or insect resistance. Their seeds have increased quantity and availability of crops, and help all farmers worldwide increase food production and revenues. Monsanto was started in 1901 by John F. Queeny, selling food additives, food extracts, and artificial sweeteners to different companies. Times changed and in the seventies, Monsanto marketed its first roundup herbicide that would propel the company even more into the public’s consciousness. However, it did do that, but within a few years after the introduction of Agent Orange which contained carcinogenic chemical dioxin, Monsanto had legal problems and a lawsuit was filed in 1979 by veterans who claimed they had been harmed by the chemical. Monsanto and other manufacturers agreed to settle for $180 million. The leaders of Monsanto decided a new focus was needed and in 1981 the company made a change focusing on biotechnology. With this new quest, the company began selling soybeans, cotton, and canola seeds if......

Words: 2454 - Pages: 10

Monsanto

...Litigation As plaintiff Since the mid1990s, Monsanto indicates that it has sued 145 individual U.S. farmers for patent infringement and/or breach of contract in connection with its genetically engineered seed.[130] The Center for Food Safety has listed 112 lawsuits by Monsanto against farmers for claims of seed patent violations.[131] The usual claim involves violation of a technology agreement that prohibits farmers from saving seed from one season's crop to plant the next, a common farming practice.[132] One farmer received an eight-month prison sentence for conspiracy to commit fraud during litigation with Monsanto[133] in addition to having to pay damages.[134] Monsanto sued the Pilot Grove Cooperative Elevator in Pilot Grove, Missouri, on the grounds that by cleaning harvested seeds covered by Monsanto's patents so that farmers could replant them, the elevator was inducing them to infringe Monsanto's patents. The Pilot Grove Cooperative Elevator had been cleaning conventional seeds for decades before the development of genetic engineering and developments in patent law led to the existence of issued patents that cover seeds.[135] In one case in 2002, Monsanto mistakenly sued Gary Rinehart of Eagleville, Missouri for patent violation. Rinehart was not a farmer or seed dealer, but sharecropped land with his brother and nephew, who were violating the patent. Monsanto dropped the lawsuit against him when it discovered the mistake.[135] In 1997 Percy Schmeiser discovered...

Words: 3500 - Pages: 14

Case Study Analysis: Monsanto Attempts to Balance Stakeholder Interests

...Case Study Analysis: Monsanto Attempts to Balance Stakeholder Interests Case Study Analysis: Monsanto Attempts to Balance Stakeholder Interests Monsanto is the largest agricultural company that specializes in both conventional and genetically modified organism (GMO) seeds and other products. Overall Monsanto has tried to maintain a good ethical culture to their different stakeholders. Because even with all the issues the organization faced, the company has taken the blame and fixed it the best way possible. For example, when word got out about Monsanto dumping toxic waste into a creek they took all the blame and agreed that it wasn’t right. Despite all the ethical issues, Monsanto has publicly made a commitment to provide full fledged support to famers through delivering technologies that will amplify the production of crops while conserving resources. They are also improving the livelihood of farmers and the people who depend on them. Monsanto’s goals are attainable through an intricate combination of biotechnology, advanced plant breeding, and improved farmer management practices. The agricultural giant also fulfills obligations to their shareholders by maximizing their profit through the development of more productive and safer seeds Monsanto can do just that (Gini & Marcoux 2009). On its website, Monsanto positions itself as a relatively new agricultural company that aims to help farmers produce healthier food by increasing productivity, repressing weeds......

Words: 523 - Pages: 3

Monsanto Case Study

...Upon researching Monsanto and it's ethical issues, I have come to the conclusion that I do not believe them to be very ethical actors, or at the very least, they know how to operate in gray areas. While they do donate to charities, those donations seem to have motivation beyond altruism. To me, their donating seeds to third world nations is really only an attempt to get in to an untapped market that will eventually rely on them. The reason I believe this is because they have shown through past actions that their main goal is to control the majority of the world's GMO supply whether it is seeds or Prosilac, the hormone used to produce more milk in cows, or any other product they produce. They sued DuPont, a competitor, for trying to create their own seeds that could withstand Roundup (a Monsanto product that has all but completely saturated the marketplace). If DuPont didn't try to engineer seeds that could withstand Roundup, they literally wouldn't be able to compete as Roundup is so widely used. Their seeds would not produce crops and they wouldn't have customers. Also, the fact that their customers cannot reuse seeds from year to year shows profit motivation. Obviously, businesses rely on profit, but I feel like Monsanto has abused the power it has secured over the food supply. If their goals were simply to wipe out world hunger and to help the poor farmer make a better income, they would not sue those same farmers for reusing seed. To me this shows that Monsanto hopes to......

Words: 3303 - Pages: 14

Monsanto

... Monsanto Paper By Raikirat Sohi MBA 505 Foundation of Management A. Hetro Jay S. Sidhu School of Business and Management November 18, 2014 COMPANY HISTORY AND PROFILE Monsanto is one of the Fortune 500 Company with its headquarters located in St. Louis, Missouri, United States. It employs 21183 employee globally providing 146 facilities in In USA alone, it employees 10277 employees distributing 404 facilities over 66 countries (Monsanto, 2014). It is an American multinational agrochemical and agricultural biotechnology corporation. It serves its customers with products ranging from agricultural and vegetable seeds, plant biotechnology traits to crop protection chemicals. In present times it is the leading manufacturer of genetically engineered seeds and herbicide glyphosate marketed under brand name round up (Monsanto, 2014). It was founded in 1901by John F. Queeny with his wife Olga Monsanto Queeny. The first produce that was manufactured by this company was saccharin (the artificial sweetener) that was sold to Coca-Cola Company. By 1905, Monsanto benefitted ad progressed through the sale of vanillin and caffeine. During the time of World war 2 Monsanto was unable to import chemicals that were needed by them from Europe so in order to compensate that it started producing chemicals on its own. Monsanto went public in Stock exchange in 1929. During this era of 1920’s Monsanto expanded in chemical industries producing sulphuric acid and PCB’s. Monsanto’s first PCB......

Words: 3124 - Pages: 13

Monsanto

...trend that has been taking place over the last couple of decades in the industry. More specifically companies like Monsanto, DuPont, and Dow and their growing takeover and market power of the industry in the United States and globally. As we learned in class compared to other industries like the automobile industry or steel industry, the agricultural industry best meets the characteristics of perfect competition. Though this is probably true as far as selling produce to grocery stores and consumers directly, my focus is on the seed supply that farmers are using to produce things like soybeans, corn and cotton. My interest in this topic stems from articles and news that i had caught my attention. I first heard of Monsanto in regards to large numbers of farmers committing suicide over in India. Since 1995 nearly 300,000 Indian farmers had committed suicide because of insurmountable debt due largely to the introduction of Monsantos (bt) cotton in the country. The (bt) refers to bacillus thuringienis, which contains 200 different proteins which naturally produce chemicals harmful to sellective insects. This is considered genetically modified seed and Monsanto has patent technology on this seed. During this period of "suicide economy" in India there was an increase in price per kilogram of cotton seeds from 7 to 17000 rupees. From this story i had read a little on Monsanto and learned that they were actually the producer of the lethal defoliant, Agent Orange, stemming from the......

Words: 1456 - Pages: 6

Monsanto Case Study

...The Monsanto Company is the world’s largest company that specializes in biotechnology and genetic manipulation of organisms. This worldwide company is well known by farmers because it helps them increase food production and revenues. Nowadays 90% of the world’s GM seeds are sold by Monsanto. The company's innovation can solve a huge world’s problems such as hunger, because of intensive growth of population and lack of food and resources. That would feed all people worldwide but only thought the use of biotechnology. During the long history of Monsanto, there were different ethical, health issue and problems in each period of time. According to the company in the period 1901, when company was founded, the production of the artificial sweetener saccharine that was sold to Coca cola, this time Monsanto was well known as a Chemical company. They supplied the U.S. Army (Agent orange) which military sprayed over Vietnam and then it lead to genetic mutations in Vietnam event after 40 years. In 1981, they determined that the biotechnology would be the company new strategic focus. Then in 1994, they introduced their first products, and then sold soybean, cotton, and canola seeds. So other herbicides killed good plants that consider as not ethical at all. After production of insecticide DDC make a debate about safety in food, that it can be cause of some dangerous illness. Ethical issue was that it could lead to changes in natural ecosystem and distorted natural balance, but......

Words: 430 - Pages: 2

Monsanto Case

... Martha ; DiStefano, Joseph & Dietz, Joerg. (2009) International management behavior : leading with a global mindset. 6th ed. Hoboken, N.J. : Wiley. "Montsanto Europe (A)", pp. 119-133. CASE 1 Monsanto Europe (A)1 We should diligently explore the possibilities of non-chemical methods [of pest control] ....Until a large-scale conversion to these methods has been made, we shall have little relief from a situation that, by any common-sense standards, is intolerable.2 Erwironmentalist Rachel Carson, author of Silent Spring On November 5, 1996, the captain of Ideal Progress piloted the large freighter into the calm waters of Hamburg harbor. Suddenly the still autumn air was pierced by a shrill noise and large floodlights momentarily blinded the captain. The engines ground to a halt as some of the deck crew gathered around the bow to listen to the chants of their strange assailants. The captain was one of the few who understood what the commotion was about; a Greenpeace ship had come to protest the arrival of the first shipment of genetically modified soybeans from the United States. IVEY Richard lvey School of Business The University of Western Ontario � Northeastern � U N I V E R S I T Y David Wesley, Professors Francis Spital and Henry W. Lane prepared this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised......

Words: 1891 - Pages: 8

Monsanto

...Monsanto Case Study Liberty University Business 472-D02 Introduction Monsanto has a long and varied history having been founded in 1901. It started by selling the sweetener saccharine to Coca-Cola, transformed itself into a chemical manufacturer, plastics, rubbers, and packaging (Ferrell, Fraedrich, & Ferrell, 2013, p.382-383). Fast forward to the late 20th and early 21st century and Monsanto is the worldwide leader in genetically modified (GM) food seeds. Through these various incarnations Monsanto has run into its share of ethical problems that has cost it some hard earned trust of governing bodies and consumers worldwide, but continues to prosper none the less. Monsanto has a very fine line to walk in keeping the highest ethical standards, finding ways to continuously innovate products that help to feed the world, and do this causing the absolute minimum damage to the environment at large as well as animals. All this must be done and still produce a profit that shareholders demand. Monsanto and the Culture of its Ethics Monsanto has a long history of ethical business violations that has resulted in fines from a multitude of American and International governmental agencies. The company has had issues with some of its products dating back to the 1940’s. Brian Tokar lists a string of products manufactured by Monsanto such as Dioxin, Agent Orange, Roundup, and others that has caused the company more than a headache or two. In reference to a train derailment and......

Words: 1413 - Pages: 6

Case Study 1: Monsanto Attempts to Balance Stakeholder Interests

...Case Study 1: Monsanto Attempts to Balance Stakeholder Interests This case involves Monsanto, the world’s largest seed company. This is no ordinary seed company, it specializes in the genetic manipulation of organisms, known as biotechnology. Weeds, insects, and drought have been a huge issue for farmers. Herbicides and pesticides were creators to keep pests off of plants, however, applying them proved to be expensive and time consuming. Monsanto answered this problem by creating seeds that contained the herbicide Roundup, which kills weeds without harming the crops themselves. These types of genetically modified (GM) seeds were just the beginning. Drought-tolerant seeds were also created for dry area such as Africa. Opponents of genetically modified crops have various reasons for believing that these products will have a negative effect on the people and insects that consume it. Monsanto has a history of unethical cultures that have had a negative effect on many stakeholders such as the environment, plants, animals and humans. The benefits of growing genetically modified seeds for crops do not seem to outweigh the negative consequences of using them. In an effort to manage the potential harm to plant and animal life from using products such as Roundup, Monsanto should adhere to the code of ethics and follow the EPA’s guidelines. “Ethical culture is acceptable behavior as defined by the company and industry” (Ferrell, Fraedrich, & Ferrell, p. 15). Monsanto’s seems to......

Words: 999 - Pages: 4

Monsanto

...concerns the scientific and agricultural community has with the seed giant Monsanto. Not only has Monsanto abused its power as a big Ag corporation to advance its profits through unethical business practices, but also strengthen its stranglehold on farmers. Being a monopoly of the seed industry, Monsanto’s work in GMOs raises concerns as to the effects they have on land, animals, and humans. Monsanto is utilizing GMOs in an effort to stem the tide of world hunger, but because GMOs have only been implemented since the early 80’s their impact on human, animals, and the environment have yet to be determined. The long term effects caused by herbicides, pesticides, and hormones aren’t fully known by society yet. However, we use Monsanto’s roundup weed killer almost every day in America. This weed killer is what GMO seeds are modified to resist, giving them the ability to grow under such harsh conditions. Little is known about the effects of these roundup ready seeds, “The future of the company may lie in seeds, but the seeds of the company lie in chemicals” (Barlett and Steele). Monsanto’s roots were in chemicals far before they were planted in the agricultural industry. Those roots were planted in the early 1900’s by John Francis Queeny, who started Monsanto chemical works. Even though, Queeny founded Monsanto it was his son Edgar Queeny who brought Monsanto to power in the chemical industry. Through the years Monsanto would work with a wide range of chemicals goods. Products......

Words: 2141 - Pages: 9

Monsanto Case Study

...495 Case #3 – Monsanto I: Situation Analysis Monsanto is a company that some people may not be explicitly familiar with on a first name basis. However, the work that the company has done over the last century, with a larger emphasis on its most recent ventures, have been deeply engrained in our lives, our food, and our economy. Monsanto has those who advocate on their behalf in addition to their naysayers. While Monsanto has made huge strides in terms of biotechnology over the last couple of decades, their accomplishments, and the relevant methods, have not been free of criticism and controversy. In order to analyze Monsanto’s corporate environment, it is important to first explore their Strengths, Weaknesses, Opportunities, and Threats through conducting a SWOT analysis. <Insert Exhibit 1 Here (See end of file)> Now that Monsanto’s internal and external environments have been analyzed through the SWOT analysis featured in Exhibit 1, it is necessary to determine what information is still necessary, and what assumptions might need to be made in order to be better-informed to make a decision. II: Assumptions and Missing Information The first piece of information that comes to mind that is only briefly mentioned in the case but that is very important to know about is the availability of alternatives and the presence of competitors. Considering that Monsanto held a considerable market share and sold a staggering majority of GMO crops at the time of the case, it......

Words: 1553 - Pages: 7

Monsanto Case

...management. As it was agreed on the last meeting, we were precluded ,from doing any work without first getting approval from management at the headquarters and we were instructed by local management from doing anything until they finalized what was required from us. It appears to me to be a Catch 22 game! 1 believe we (your Firm and ours) should not fall in the game of passing the ball to someone else before getting a clear understanding of what is going on. We have had several meetings with local management where the issue has been raised and were responded that other priorities were established by the headquarters (on my end I thought they tell you everything they have been instructed of locally, unfortunately it does not seem to be the case). In my opinion it looks very easy that you accept from management at the headquarters to hold us accountable from something we are not responsible for, and this does not mean I do not understand the pressure you are receiving on your end. However, we are not the enemy. 1 am not sending copy of this message to our client because I believe that internal issues have to be primarily dealt with internally without involving our clients in the internal politics. The last is what I myself truly believe. Could you tell me how can you accept a deadline from our Firm without first having involved local management? Don't you think they are the first to be involved local management? Don't you think they are the first to be involved on this? I......

Words: 1219 - Pages: 5

Monsanto Case

...When Monsanto decided to introduce its genetically modified soybeans to Europe, they were faced with numerous uncontrollable forces in which they had to contend. Monsanto had little opposition to the product in the US. Consumers were indifferent to the technology and for the most part, embraced it. With this success, they assumed that the sentiment would be shared internationally. After all, Monsanto had good intentions. They had aspirations to reduce pesticide use and subside world hunger. Despite these intentions, they failed to realize that foreign environments have differing values and can be difficult to assess especially regarding political, legal and cross-cultural differences. Ultimately the product was not accepted in Europe mostly out of concern for food safety. It is important to analyze and understand the forces they were faced with to have a sense of why Monsanto failed. Monsanto failed in Europe for two main reasons. The first (outside of Monsanto’s control) was the recent outbreak of Mad Cow disease linked to British Beef, yet downplayed by the government. This event just so happened to coincide with the introduction of the genetically modified soybeans. There had been a loss of trust in government and food safety. We can refer to uncertainty avoidance in Hofstede’s four dimensions model to understand this further. Many European countries rank high in uncertainty avoidance and are risk averse. Members of this type of society have high......

Words: 556 - Pages: 3

Monsanto

...Communications in Business Critical Essay Monsanto A Review of Performance of Monsanto On Genetic Modified Planets to Environment and Mankind Boyang Xu 16004593 Semester Two 2012 Bentley Campus Tutor: Wisdom Jo Tutorial Time: Thursday 14:00-16:00 Email: xby_remind@msn.cn The past century saw huge changes in the business world. The challenge of business is changing rapidly over time. Nowadays, companies are attaching greater importance to their Corporate Social Responsibility(CSR) instead of focusing on seeking greatest profits only. Customers are becoming more and more concerned with large multinational companies' performance in respective of their social responsible manner,especially those multinational companies such as Monsanto.The Monsanto Company is an American based multinational agricultural biotechnology corporation,the world's leading producer of the Genetically Modified seeds (Monsanto, 2012a) This paper will review the social performance of Monsanto's various products to mankind, and analyze the impact of these performances on two key stakeholders: the communities Monsanto conducting business operations in and shareholders of the company. An on-balance conclusion about the company's performance in society will be provided at last. With regard to its social performance, Monsanto has always been devoted to the sustainable development of human beings. People around the world rely heavily on agriculture and the farmers working hard to satisfy......

Words: 1841 - Pages: 8