The Monsanto Company had grown into one of the leading profitable seed genetic engineers since the 1990s when it was under the initial management of John Francisco Queeny, who was also the founder of the organization (Ferrell, Fraedrich, & Ferrell, 2015). The company has undergone tremendous management and strategic changes to attain the current status it upholds in the highly competitive market. However, its rise to glory has not been without controversies as the society questions the health implications of bioengineering and GMO products on plants and animals. The sustainable company has gradually changed its line of products from plastic and chemical products like sweeteners to packaging and petroleum for the sole purpose of diversity. Consequently, Monsanto Company has faced numerous legal challenges following the production of their new range of seeds that could kill pests who caused detrimental implications for the plants. Critics have raised concern over the herbicide aspect of the seeds which may lead to the extinction of some insects. Monsanto’s efficacy and the ethical image are dependent on the regulation of harm done on plants and animals.
Efficacy of Monsanto’s Ethical Culture
The ethical culture of a company is deduced to be one of the most critical factors that stakeholders and shareholder consider before establishing any relationship with the organization. Monsanto Company is not new to controversies as the organization has made headlines in use on several occasions for its diversified range of products (Ferrell, Fraedrich, & Ferrell, 2015). Critics have time and again accused the company of producing bioengineered seeds that cause irreversible effects on animals. Additionally, various groups reproved of the GMO products of the company claiming that the organization did not conduct extensive research and tests thus may be inimical to humans (Miller, 2012). However, the company has recently embarked on sustainable agriculture which has not only improved its ethical culture but significantly reduced any probabilities of health risks to the consumers. Monsanto Company is well acquainted with the pertinent issue of ethics and the impact it has on stakeholders and its general financial performance.
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The historical background of the company reveals various bribery, patent, and legal cases which distort the company’s façade. Although it may seem debatable, the company has had a fair share of drawbacks with 2003 being its worst performance yet (Ferrell, Fraedrich, & Ferrell, 2015). In the fateful year, Monsanto Company incurred a significant loss after a batch of the yield produced grave health distress to consumers and animals. According to ONeil (2006), over 20,000 individuals were directly or indirectly impacted, and as a result, the company was mandated to pay $700 million as reparations. Before the incident, a similar but less consequential occurrence has made headlines in 1972 where Monsanto was forced to pay about $180 million as compensation to affected persons (Ferrell, Fraedrich, & Ferrell, 2015). Nonetheless, the company’s concerted efforts to help in modulating the world food crisis have become a redeemable quality that has changed the public’s perception of the firm. The organization has thus diversified its ethical practices and evolved its line of products to a more sustainable one.
Costs and Benefits of Growing GMO Seed
Being a rarely exploited market, the genetic modification of organisms has proven to be one of the most beneficial yet challenging businesses. Due to the change in climate conditions, the world has in the recent decades witnessed exceptional hunger strikes with millions dying of malnutrition and starvation in less developed countries (Ferrell, Fraedrich, & Ferell, 2015). GMO seeds have been scientifically evinced to be better than their counterparts on varying fronts such as their durability in harsh weather conditions, herbicide features, and tolerance to diseases. Also, genetically modified products take a shorter duration to grow as compared to traditional seeds.
Nevertheless, due to the long manufacturing process, GMO seeds have become expensive for farmers and other consumers discouraging their overall consumption (Miller, 2012). Accordingly, the market share for genetically modified products has dramatically decreased over time as consumer resort to cheaper alternatives. The cost of growing GMO seeds has adversely increased in effect to economic factors discouraging consumption.
There are myriads of benefits derived from growing GMO seeds. One of the main advantages is that the market is less crowded hence companies face little pressure from a few competitors. Monsanto Company enjoys the privilege of serving a large ready market (Ferrell, Fraedrich, & Ferell, 2015). Genetically modified products constitute a significant source of relief for numerous countries in the world which suffer from seasonal droughts (Rajan & Letourneau, 2012). These developing nations form a considerable segment of the world population, therefore, composing an integrated market for GMO seeds marking the industry profitable. Another contributing factor is the universal food policies that protect the health interests of consumers globally (Goyal & Gurtoo, 2011). All nations in various trade unions have accepted GMO products to be virtuous and the solution to malnutrition and starvation. Genetically modified products have profited the world by being on the frontline of the war against hunger in third world countries.
Management of Harm to Plants and Animals
It is no mere conspiracy that genetically modified seeds possess some undesirable health effects on consumers. The causal agent of the health hazard is the application of chemicals that have been proven to have fatal effects on users. Technology has enabled consumers to investigate and research the components of various GMO products and has as a result of increased awareness (ONeil, 2006). Thus, people are now more aware of the products they use than they were in the past ten years. Monsanto Company, in the light of this information, has implanted various stringent measures to ensure that their production process follows a moral code and at the same time conservative approaches. The company has used technology to significantly reduce the chemical composition of herbicides and pesticides in its products thus limiting the total risk to both plants and animals (Widiantoro, 2011). Integrating less chemical into their production process will reduce the rate of soil pollution and cases of food poisoning amongst consumers.
The management of the company has undergone dramatic changes over the years. The world has witnessed new management personnel take over the company and with each came different strategies. To successfully change the production policies and methods, the company is necessitated to employ new ideas that are innovative and sustainable (Rajan & Letourneau, 2012). One can state with certainty that Monsanto Company has changed not only its approaches in production but also its general consideration for the public’s health (Goyal & Gurtoo, 2011). Although a majority of people maintain that GMO products are man’s attempt to compete with the Creator, these products have undeniably become a great source of food for numerous countries worldwide. In Genesis 3:17-19, God commands man to eat all the natural plants except one (King James Version, 1611). For a company to achieve any desired changes, it is hence necessary for its management to undergo constructive changes too. Management has played a significant role in controlling the amount of harm to plants and animals.
In conclusion, Monsanto Company has faced a series of lawsuits, patent, and legal battles due to their alleged unethical production of genetically modified products. In the year 2003, the company incurred a massive loss of $700 million as compensation for health damages caused by its products on the consumer. However, the company has put strategic implementations in place to maintain a healthier and sustainable line of products by using technology. The organization is presently focused on reducing the number of chemical substances in it seeds to reduce the rate of soil pollution and health effects on both plants and animals. Monsanto Company has embarked on sustainable production under its new management and aims at extensive conductive research to ensure quality and beneficial products. The ethical image of any organization is the critical determinant of its profitability and survival in the prevailing market conditions.
References
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2015). Business Ethics: Ethical Decision Making and Cases (10th ed.). Stamford, CT, USA: Cengage Learning.
Goyal, P., & Gurtoo, S. (2011). Factors Influencing Public Perception: Genetically Modified Organisms. GMO Biosafety Research .
King James Version. (1611). The Bible. The Bible: Authorized King James Version . doi:10.1093/oseo/instance.00016818.
Miller, D. (2012). Genetically Engineered Food . Greenhaven P.
ONeil, M. (2006). Monsanto Inc. and the GMO Revolution. The International Journal of Environmental, Cultural, Economic, and Social Sustainability: Annual Review , 2 (1), 17-28.
Rajan, S. R., & Letourneau, D. K. (2012). What Risk Assessments of Genetically Modified Organisms Can Learn from Institutional Analyses of Public Health Risks. Journal of Biomedicine and Biotechnology , 2012 , 1-8. doi:10.1155/2012/203093
Widiantoro, D. M. (2011). The Rules and Code of Conduct in Business Ethics are Already Confirmed: Does Monsanto Company Obey the Criteria of Being Ethical? Analysis from Monsanto Business Project in Indonesia During 1996-2002. SSRN Electronic Journal .
