Why Corporate Social Responsibility Matters (BU041)

INDIVIDUAL ASSIGNMENT #1: (Claire.Jin) * * * * * * * * *
Table of Contents Executive summary 2 Introduction 3 Question 1: Efficacy of Monsanto’s Ethical Culture 4 Question 2: Costs and Benefits of Growing GMO seed 5 Question 3: Management of Harm with Plants and Animals 6 Question 4: Visit Monsanto website, what is CSR and Sustainability Strategy of Monsanto, and give suggestions for its strategy for Monsanto Company? 8 Conclusion 9 Bibliography 10

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Executive summary Monsanto is one of the world’s largest industrial agriculture businesses, especially focusing on genetically modified products. Monsanto has obtained a progress in corporate responsibility, but Monsanto has deficiencies with ethical culture. Monsanto is in a difficult position, because the products are highly specialized and therefore most consumers do not understand them. Although, Environmental and health issues aside, Monsanto’s GM seeds provide an opportunity for farmers to increase profits by allowing them to grow crops on land that would not support traditional seeds. And it suggests creating ethical corporate system to help them to deal with the problem that products harm to plants and animals. Finally, it introduces the website, what kinds corporate social responsibilities and sustainability strategy does Monsanto has. For example, they pay attention to education, charity…. Introduction * The Monsanto Company is the world’s largest seed company, specializing in genetically modified (GM) seeds. In 2009 the company made over 8.6 billion dollars in sales. There have more than ninety percent of GM seeds are made by the Monsanto. (Sitemaker, 2013) * * Over the years the Monsanto Company has seen many changes. Monsanto was established in 1901 in St. Louis by John F. Queeny, who has more than 30 years experience of medicine. The company first experimented products are food additives, then it invented the artificial sweetener, saccharine, which it sold to the Coca Cola Company. During the world war1, the company saw the potential in chemical and related products so that it renamed the company as The Monsanto Chemical Company. But when they expanding products continually with plastics and synthetic rubbers, they change back to the Monsanto Company in 1964. (Appdm, 2015) In the developing history of Monsanto, it has showed a clear disregard for ethical obligations in its history and continues to downplay the importance of environmental and physical risks to the consumer. Although Monsanto has claimed to realize the errors of its ways and has made a conscious effort for greater corporate responsibility in the future, the company is simply saying these things to avoid further criticism.

Question 1: Efficacy of Monsanto’s Ethical Culture Monsanto has obtained a progress in corporate responsibility, but Monsanto has deficiencies with ethical culture. Monsanto is in a difficult position, because the products are highly specialized and therefore most consumers do not understand them. (Appdm, 2015) Throughout Monsanto’s history it has disappointed shareholders many times. For example: first time of many unethical circumstances, they produced Agent Orange in the 1970’s. And Monsanto has been continuously attacked by numerous critics for events such as harassing farmers that have violated the Monsanto patents and the awareness of the Monsanto leaders of decades of environmental pollution caused by its toxic waste, monopolizing their field which has led to anticompetitive behavior, and cases of bribery. (Responsibletechonology, 2013) At the same time, Monsanto sold products which harmful to plants and animal and destroying of biodiversity. When Monsanto saw those problems, it still does not devote it to rebuild brand image. In 2007, Monsanto donated $24,514,660 to charity; it is only 0.66% of Monsanto annual profits. But in United State, Small companies donate 6% of their profits to charity. Even the average of person donates 2.2% of their income. This lack of charitable giving is just a small representation of Monsanto’s lack of ethical principles that lead to there overall declining ethical culture. However, Monsanto inputs a lot of human resources and resources into broadcasting its efforts to product seeds, that make it produce higher yields, use less natural resources, and stronger quality. Therefore, improving and serving quality of people’s life around the world. Although they have made these strides, the overall problems faced by Monsanto, and their history of non-ethical behavior downplays these progressions and continues to show an overall lapse in integrity for the company. Question 2: Costs and Benefits of Growing GMO seed * The Food and Drug Administration has demonstrated that the genetically modified food is safe to people, and also New York Medical College did examination shows Monsanto products are not damage for the human health like Roundup. The advantages of growing genetically modified seeds might be a fantastic opportunity for mankind to generate abundance that is unparalleled. They represent a product of hundreds of year’s life that is observing learning it, reducing it down seriously to understand it. The negative consequences of using GM seeds being genetically modified with herbicides and pesticides is the uncertainty of wellness consequences of people consuming the food grown by these seeds. (Sitemaker, 2013) And there have a lot studies that have proved that Monsanto products are risky for environment, it can cause some issues to destroy the environment, for example: the fear of creating “super” bugs and weeds. The Environment influences human life. The consumer always wants to pay a lower price for food, at the same time; they do not want to forfeit their family’s health and the environments wellbeing. While Monsanto claims that it has helped farmers grow more food in less space using less water, it is impossible to make the argument that Monsanto products are natural. Monsanto offers appealing products that help the growth of plants, the overall effects of the products could cause harmful behavior in the future. Research on GM plants’ effects on the environment, biodiversity, and human health has provided inconclusive results. But, especially in European countries, regulations designed to guarantee security that is sufficient of technologies may get past an acceptable limit. Environmental and health issues aside, Monsanto’s GM seeds provide an opportunity for farmers to increase profits by allowing them to grow crops on land that would not support traditional seeds. Overall, individuals need to understand the health risks of the products and decide if cheaper manufacturing and greater profit for the company is worth the risks.
Question 3: Management of Harm with Plants and Animals * The only way that is ethical, from almost any standpoint is to totally stop the production and distribution of Roundup while refocusing their attention on GMO's and halt focus on Roundup phenotypes. The damage it causes to bio indicator species like tadpoles along with the harm that is documented peoples cells, must be sufficient to cease polluting our ecosystems with this. Not to mention what exactly is mixed up in production among these poisons. Monsanto boast that Roundup is biodegradable, claiming that it stops working quickly in the soil. But courts in America and Europe discovered and disagreed them and charges them with false marketing. In fact, Monsanto’s own test unveiled that only 2% of Roundup broke down after 28 days. The reason why farmers use Roundup, GMO traits or just about any item is because if makes their job easier, it really works, and it makes money for them. Most farmers are stewards along with their soils as that is the lifeline. It really isn’t by accident that the main reason that most of our plants are GMO. It is because they WORK. This could potentially be a very large problem in countries such as Latin America, Africa and Asia because these famers may not understand the risk of their actions. (v., 2015)Monsanto has to work to create workshops, training regiments and other helpful resources to teach famers the proper ways to use their products. If Monsanto truly wanted to show their support for corporate business ethics and the welfare of the environment they need to push for greater understanding of their products for consumers. Farmers need to understand the repercussions of overusing certain products and failing to abide by the rules of government regulations. Monsanto is a powerful, very successful business with a history of making many questionable or unethical business decisions in order to increases profits. Monsanto holds a monopoly on GM seeds for cotton, canola, corn and soybeans. Many of these seeds also require the use of Roundup Ready, a product also produced by Monsanto. Critics accuse Monsanto of seeking to profit at the expense of the consumers health, the environment, and biodiversity and of being anticompetitive. While GM seeds have not been proven definitively to be harmful, these critics’ claims are not without merit as Monsanto has a long history of taking the easy way out and covering up illegal and unethical activity. Being ethically sound in a business means that the company cares, not only for the consumer, but also for the environment and the wellbeing of individuals. Monsanto has shown throughout their history to be materialistic and pompous. Monsanto, while attempting to appear as ethically sound has made too many bad decisions in their long history and continue to show a pattern of unethical behavior. Their continual disregard for physical and environmental health mixed with there lust for profits at any costs proves that their “strive” for a better ethical corporate system is merely an act to produce more profit.

Question 4: Visit Monsanto website, what is CSR and Sustainability Strategy of Monsanto, and give suggestions for its strategy for Monsanto Company? Corporate social responsibilities of Monsanto: Monsanto company has very clear and principled corporate social responsibilities: validates rectitude, regard, ethical performance, perception and honesty as a basis. And it also made three commitment policies: (1) produce more yields in crops, (2) preserve more resources, (3) to advance the lives of farmers. Those keys facts are the heart of Monsanto, at the same time, has built a genuine value system to support it. (O, 2013) Corporate social responsibility for students ：Monsanto support many foundations to encourage students round world work in partnership with government bodies, non-profit agencies , thus leading agriculture has favorable development. Corporate social responsibility for public: engaging communities in a significant and positive manner. And Monsanto offers educational programs such as science and agriculture. Sustainability strategy of Monsanto: Monsanto sustainability strategy approaches to doing business and assisting to feed the world's growing population, and Monsanto corporate considers sustainability strategy as a journey. Sustainable agriculture is at the core of Monsanto. Monsanto pays attention to developing the technologies that to make farmers to produce more crops while keeping natural resources that are the key factor to promote success. Monsanto enterprise takes an inside-out approach to assessing what is expected and how to further embed sustainability into business. (Appdm, 2015) Monsanto joins the Global Reporting Initiative to connect with public, and use it to share Monsanto's promises. At present, Monsanto focuses on how to reduce impact on the environment and get a sense for the degree. And Monsanto wants to assist making a balanced plate accessible to all while using fewer resources by transparency, collaboration and hard work. Some suggestions for Monsanto: For the long-term strategy, Monsanto should focus on how to deal with the influence of environment by its products and the lingering concerns over the safety。Monsanto can sets up a professional team to analysis what are the key factors in this problem, then find the solutions by doing examinations. Then Monsanto should improve themselves on ethical standard of behaviors, to rebuild itself as a socially responsible company like developing more products not only improve the quality but also keep environment safe. At the same time, to encourage them to be creative, therefore increases its competitive edge in the future. (Sitemaker, 2013)

Conclusion

Monsanto has many unethical problems in its history, like they produced Agent Orange to destroy woods and another product pollute environment called Roundup. As Monsanto corporate social responsibility and sustainability strategy say that they think validates rectitude, regard, ethical performance, perception and honesty as a basis, and developing the technologies that to make farmers to produce more crops while keeping natural resources that are the key factor to promote success. But they should to practice instead of saying.

Bibliography
Appdm. (2015, 02 14). Monsanto culture. Retrieved 05 14, 2015, from Monsanto : http://www.monsanto.com/careers/pages/culture.aspx
O, F. (2013). Ethical decision making and cases. Tenth , 5.
Responsibletechonology. (2013, 08 23). Monsanto's Roundup Triggers Over 40 plant Diseases. Retrieved 05 14, 2015, from responsibletechnology: http://www.responsibletechnology.org/posts/monsanto%E2%80%99s-roundup-triggers-over-40-plant-diseases
Sitemaker. (2013, 06 01). GM Crops: Costs and benefits. Retrieved 05 14, 2015, from Sitemaker: http://sitemaker.umich.edu/sec006group5/introduction
v., M. (2015, 2 6). How to feed the world. Retrieved 5 14, 2015, from Businessweek: http://www.businessweek.com/innovate/next/archives/2010/01