Ethical Case: Monsanto Case Study Business Ethics

Ethical Case Study of Monsanto Company
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June 19, 2020
Understanding ethical issues in an organization is an essential skill for any business manager. It allows him not only to respond to different contingencies but also to be able to set rules and guidelines that would set his organization on the path of efficiency and goodwill. Accordingly, one of the best ways to understand these issues is by looking at previous ethical issues. Thus, this article would focus on an analysis of the Monsanto agricultural company, which has been engaged in controversial acts such as crop modification, local farmer harassment, and toxic chemical production. This analysis would be based on the company’s past actions as well as its effects on the different stakeholders involved. All in all, the author believes that establishing a steadfast ethical culture that would guide its actions would further improve its capacity to make sustainable decisions while balancing its inherent need for profit.
The Monsanto Case
Monsanto Agricultural company is a biotechnology company that specializes in biological innovations (i.e., seed modification). It is considered to be one of the largest agricultural companies in the world, even before it was acquired by Bayer in 2018 CITATION Bay19 \l 1033 (Bayer.com, 2019). Before its acquisition, Monsanto’s primary revenue source was the sale of its genetically modified seeds and products that are pest-resistant, weather-resistant, and high-yield as compared to regular crops.
However, despite their relative advantages, several movements have grown in opposition to the company’s use of Genetically Modified Crops (GMCs). Due to the lack of studies as to its long-term effects, the opposition was worried that its products might produce some adverse effects on other crops or in humans. Thus, Monsanto has always be faced with the ethical dilemma of where it has to balance profitability and the need to take into account the possible social repercussions of its products.
Understanding Monsanto’s Past
As stated earlier, it was said that one of the main issues that surrounded Monsanto’s past the small information on the long-term effects of the company’s products. Although the company must balance profitability and Corporate Social Responsibility (CSR), it must be noted that the nature of its business makes it more challenging to do so. Thus, the CEO would be caught between making any decision because they would both impact the company in different ways.
On the one hand, it could be seen that one side of this issue focuses on the need for Monsanto to (1) address world hunger, and (2) maximize shareholder value. First, since many States rely on Monsanto’s products to make agriculture viable even in the harshest of conditions, then stopping their production would reduce the chance of the world to address poverty. For example, reports have shown that African nations that have drier soils were dependent on Monsanto’s GMC Corns, which can thrive even in dry climates CITATION Gil09 \l 1033 (Gillam, 2009). Thus, stopping or slowing production and application of innovative technologies could be seen as unethical from t...