Byron Matamoros

Business Ethics

25 November 2017

Monsanto Attempts to Balance Stakeholder Interest

1. Does Monsanto maintain an ethical culture that effectively responds to various

stakeholders?

No, they do not stick to an ethical culture that benefits all the stakeholders of the

company. In some manners because the products have benefited many farmers.

Nevertheless, the top management officers of the company seem to be acting at the moral

minimum by complying with the law, which they have already modified to legally

introduce their products and so to generate equity for the company. Although they have

tried to create a corporate responsible companys image, their practices provide a

different view for the company. The case presented some situations in which the

company created product that aimed at benefiting all the stakeholders. However, they

have caused harm not only to customers but also to people who live near the place where

Monsanto products are used. The company has recently tried to implement an approach

to respond to all the stakeholders concerns but they have relied too much on legislation.

Furthermore, they are facing two major obstacles, which are the size of the company and

the chemicals they use. First, Monsanto is a large company facing many concerns from

people all over the world. They can solve this issue by establishing solid ethical behavior

practices that come from the upper levels to the subordinates. In addition, they can use a

customers approach to find solutions to the harms that their products have caused. The

second problem involves the chemicals that they use because they have weakening the
 soil and other natural resources. To solve these problems Monsanto must use time, effort,

money, and people concerns to create a positive impact on the company and its

stakeholders. Therefore, Monsanto is still not using an ethical culture that responds to

various stakeholders.

2. Compare the benefits of growing GM seeds for crops with the potential negative

consequences of using them?

The benefits of genetically modified seeds are countless because they represent an

opportunity to create abundance and diversity. Genetically modified crops can potentially

raise agricultural productivity and reduce the need for environmentally harmful pesticides

(Qaim, 2010). They reduce the cost of production such as machinery, fuel, and chemical

pesticides. Furthermore, the study and implementation of GM seeds represents an

opportunity to understand the behavior and adaptation of genes. At the same time, it gives

the opportunity of using those studies for the benefit of the humankind. However, the

study of genes and its repercussion has not been fully developed. For instance, the case

suggests that it is possible that the use of Monsanto chemicals can generate super bugs

and super bugs. Moreover, the GM crops are considered expensive and cannot be

afforded by any kind of producer. In addition, the indiscriminate use of those resources

may cause negative environmental effects by reducing biodiversity and polluting the

environment.

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

using products such as Roundup?

The most ethical decision that Monsanto could take is to stop the production and distribution

of Roundup. Since it has been proved that the product is potentially hazardous, it is not
ethical to sell it. So, they should stop the production of Roundup and invest money, time, and

human capital to develop a safer product. Stopping the production of Roundup may represent

an ethical dilemma for the company officials. This is because they own a duty to the

stockholders, which is maximize their earnings. On the other hand, they also own a duty to

consumer, which is to provide a high quality product. Even though Monsanto might stop

earning profit for a while, they can recover from the loss by providing a quality product that

can also attract new customer. Therefore, as a responsible company, Monsanto must show

that it is really concern about the effects that their product has on people and the

environment.
 References

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2017). Business ethics: Ethical Decision Making and

Cases. Boston, MA: Cengage Learning.

Qaim, M. (2015, November 05). The Benefits of Genetically Modified Crops-and the Costs of

Inefficient Regulation. Retrieved November 23, 2017, from

http://www.rff.org/blog/2010/benefits-genetically-modified-crops-and-costs-inefficient-

regulation