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. As an executive of Monsanto, how would you explain the value of these initiatives from a stakeholder perspective?

. As an executive of Monsanto, how would you explain the value of these initiatives from a stakeholder perspective?

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Refer to Case 1: Monsanto Attempts to Balance Stakeholder Interests

Investors have been complaining about Monsanto’s philanthropic initiatives because they believe they are costing Monsanto valuable resources and do not contribute value. As an executive of Monsanto, how would you explain the value of these initiatives from a stakeholder perspective?

Be sure to address:

  • Monsanto’s ethical culture
  • Monsanto’s ethical responsibility, specifically in their use of products such as Roundup

 

 

CASE 1 Monsanto Attempts to Balance Stakeholder Interests* INTRODUCTION When you think of Monsanto, the phrase genetically modified likely comes to mind. The Monsanto Company is the world's largest seed company, with sales of over $15.9 billion. It specializes in biotechnology, or the genetic manipulation of organisms. Monsanto scientists have spent the last few decades modifying crops-often by inserting new genes or adapting existing genes within plant seeds-to meet certain aims, such as higher crop yields or insect resistance. Monsanto develops genetically- engineered seeds of plants that can survive weeks of drought, ward off weeds, and kill invasive insects. Monsanto's genetically modified (GM) seeds have increased the quantity and availability of crops, helping farmers worldwide increase food production and revenues. Today, 90 percent of the world's GM seeds are sold by Monsanto or companies that use Monsanto genes. Monsanto also holds a 70 to 100 percent market share on certain crops. Yet Monsanto has met its share of criticism from sources as diverse as governments, farmers, activists, and advocacy groups. Monsanto supporters say the company creates solutions to world hunger by generating higher crop yields and hardier plants. Critics accuse the multinational giant of attempting to take over the world's food supply and destroying biodiversity. Since biotechnology is relatively new, critics also express concerns about the possibility of negative health and environmental effects from biotech food. A Harris Poll shows that Monsanto is considered to be the fourth most hated company in the United States. However, these criticisms have not kept Monsanto from becoming one of the world's most successful businesses. This analysis first looks at the history of Monsanto as it progressed from a chemical company to an organization focused on biotechnology. It then examines Monsanto's current focus on developing GM seeds, including stakeholder concerns regarding the safety and environmental effects of these seeds. Next, we discuss key ethical concerns, including organizational misconduct and patent issues. We also look at Monsanto's corporate responsibility initiatives. We conclude by examining the challenges and opportunities that Monsanto may face in the future. 382 382
Transcribed Image Text:CASE 1 Monsanto Attempts to Balance Stakeholder Interests* INTRODUCTION When you think of Monsanto, the phrase genetically modified likely comes to mind. The Monsanto Company is the world's largest seed company, with sales of over $15.9 billion. It specializes in biotechnology, or the genetic manipulation of organisms. Monsanto scientists have spent the last few decades modifying crops-often by inserting new genes or adapting existing genes within plant seeds-to meet certain aims, such as higher crop yields or insect resistance. Monsanto develops genetically- engineered seeds of plants that can survive weeks of drought, ward off weeds, and kill invasive insects. Monsanto's genetically modified (GM) seeds have increased the quantity and availability of crops, helping farmers worldwide increase food production and revenues. Today, 90 percent of the world's GM seeds are sold by Monsanto or companies that use Monsanto genes. Monsanto also holds a 70 to 100 percent market share on certain crops. Yet Monsanto has met its share of criticism from sources as diverse as governments, farmers, activists, and advocacy groups. Monsanto supporters say the company creates solutions to world hunger by generating higher crop yields and hardier plants. Critics accuse the multinational giant of attempting to take over the world's food supply and destroying biodiversity. Since biotechnology is relatively new, critics also express concerns about the possibility of negative health and environmental effects from biotech food. A Harris Poll shows that Monsanto is considered to be the fourth most hated company in the United States. However, these criticisms have not kept Monsanto from becoming one of the world's most successful businesses. This analysis first looks at the history of Monsanto as it progressed from a chemical company to an organization focused on biotechnology. It then examines Monsanto's current focus on developing GM seeds, including stakeholder concerns regarding the safety and environmental effects of these seeds. Next, we discuss key ethical concerns, including organizational misconduct and patent issues. We also look at Monsanto's corporate responsibility initiatives. We conclude by examining the challenges and opportunities that Monsanto may face in the future. 382 382
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