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Syngenta's Analysis

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Third Assignment Title: ‘Imagine that you are the CEO of Syngenta, a global agricultural chemicals supply company based in Basle, Switzerland. Read the article about the ‘Pesticide Nun’, then review your strategic options and outline your decision for the future of the UK business.’
Write a statement of the purpose of this assignment. Then identify three sub-questions to be answered:
1.1 What is Syngenta and what does it do?
1.2 Company’s statement of Corporate Responsibility
1.3 Consideration of the evidence presented in the article ‘Pesticide Nun’
1.4 Strategic positions that Syngenta might take and the conclusion

The purpose of this assignment is to consider the evidence of the article ‘Pesticide Nun’ and implications of this ruling for both the UK and the global business of Syngenta. Furthermore, company’s statement of Corporate Responsibility will be discussed and then in the end the conclusion will be drawn with the decision for the future of the UK business.

1.1. Syngenta is a world-leading plant science company based in Basel, Switzerland which promotes sustainable agriculture through inventive technology and research. Furthermore, the company ranks third in the high value commercial seeds market and is a leader in crop protection products (pesticides) (Syngenta, 2009). It has more than 24,000 employees in over 90 countries committed to the purpose to bring plant potential to life. Moreover, through global reach, world-class science and obligation to the customers it helps to protect the environment, enlarge crop productivity and improve quality and health of life. In the introduction of GM crops Syngenta is an influential player both in the UK and globally. It inherits the legacies of both its parent companies, AstraZeneca and Novartis, promoters of GM genetically-modified) technology and producers of chemicals (Corporate Watch, 2002).
1.2. Business Corporate Responsibility includes the impact of their activities on the employees, stakeholders, environment, customers, communities and other members of the public sphere (Guarnieri & Kao, 2008). Syngenta is guided by the belief that the creation of value depends on the environmental and social performance and thriving integration of business. The company is committed to sustain and promote high standards of corporate responsibility worldwide in an industry that is very important to food production and global agriculture. Syngenta acts according to its Code of Conduct and its Safety, Health and Environmental Policy, which encompass internationally, accepted highest scientific standards and regulations (Sygenta, 2009). According to David Boddy (2008), Corporate Responsibility includes Economic responsibility (make a profit), Legal responsibility (obey the law), Ethical responsibility (do, what is right, avoid harm) and Discretionary responsibility (contribute to community, be philanthropic). In addition to this, Syngenta’s Corporate Responsibility Commitments are these:
• Promote healthy, safe and resource effective practices for the usage, production and disposal of its products;
• contribute to sustainable agriculture in the production of the preservation of biodiversity and healthy food;
• keep high ethical standards in all business practices;
• support and encourage its customers and suppliers to approve comparable responsibility standards;
• make a positive contribution to the communities where it has operations;
• respect and value different talents and creative potential of its employees;
• contribute to sustainable agriculture in the production of the conservation of biodiversity and healthy food;
• apply high standards of stewardship for the effective, safe and environmentally responsible use of its products;
• look for and respond to feedback from its stakeholders (Syngenta, 2009).
1.3. As it is stated in the article ‘Pesticide Nun’, Georgina Downs had some serious problems with her health because of the pesticides, regularly sprayed on farmland beside her family home in Chichester, West Sussex. Downs claims that she has been in hospital for leg pain, severe muscle wasting and other chronic symptoms. Woman has now called on the government to ban spraying near public areas, which made farmers to believe that the ruling may even lead to pesticides being banned and that crop yields will fall significantly as a result. Nevertheless, farmer was working with the law, which allows using pesticides in order to protect crops from insect pests, weeds and fungal diseases as well as prevent rats, flies and other insects from contaminating foods. However, everyone who uses pesticides has the responsibility to make sure that they use them effectively and correctly (Health and Safety Executive, 2009). It is essential to find out if the product is permitted for the crop and situation for which you want to use it. Everyone who uses pesticides must have sufficient instruction, guidance or training for their correct use. Users of pesticides must ensure that all reasonable precautions are taken to prevent spray drift (Health and Safety Executive, 2009). Whereas there was a compliance with the conditions (pesticides were sprayed using the protection and it was allowed to do that), the law has not been broken in the UK. Moreover, Switzerland is not bound by EU laws as it is not a member of the European Union. However, pesticides were sprayed too often, which caused serious health problems for the woman. In order to prevent possible recurrence of the situation in the future, some serious actions were taken. In January 2009, in favour of proposals from the Commission, the European Parliament voted to tighten rules on pesticide use that can cause cancer or harm human reproduction or hormones (BBC, 2009). As a result, Syngenta is now even more aware of a code of ethics which is a formal statement of the company’s values, setting out main principles on matters such as employees, quality or environment (Boddy, 2008).
1.4. Syngenta understands that agriculture can have an impact on biodiversity. Aiming to show what resources are necessary for providing high quality crops and a sustainable environment for both wildlife and humans, the company has engaged in projects. Now Syngenta with the partnership of Operation Bumblebee and with the Earthwatch Institute is trying to enlarge awareness of the issues and opportunities for biodiversity conservation in agriculture (Syngenta, 2009). Syngenta’s purpose is to bring plant potential to life and the company is achieves it by working to its values: Health, Performance, Innovation and Intensity. Health value reflects big respect for environment, together with a commitment to releasing employees’ potential and liveliness. Performance means building the company ethically and safely, keeping made promises, delivering high-quality results and achieving benchmark standards. The company is also looking for a better way by turning penetrated ideas in business and science into new solutions. Syngenta does that by working closely with customers and promoting peoples creativity (Syngenta, 2009). Moreover, it is trying to build new partnerships with other companies to create a winning edge. Syngenta’s goal is to have a significant role in society and build an immense company. Over the next three years most of the investment is set to be spent in Grangemouth to contain a raise in the production of azoxystrobin, a key ingredient in fungicide Amistar (BBC, 2008). This is a strategic position that Sygenta is taking right now.

To sum up, Syngenta is a world-leading global chemicals supply company, which has expanded during the years and is still expanding. It now works in West & East Africa, Asia and South America. As the globalisation- ‘the increasing economic integration of the world’ (BBC, 2008) - is transforming the face of the global economy, the company is selecting and holding on to the stages of the value chain that they consider to add the most value, while relocating the firm’s remaining activities to foreign countries or to third parties in foreign countries (BERR, 2008).The best strategy for Syngenta is to keep expanding globally, but the Corporate Responsibility should not be forgotten. Syngenta has to apply high standards of stewardship for the effective, safe and environmentally responsible use of its products as well as keep high ethical standards in all business practices. The company has to avoid harm and make sure that what they do is legal and does not affect other people’s health as it happened with Georgina Downs. This will protect Syngenta from such situations in the future.

References:
BBC News (2009), At-a-glance: Key EU laws [Online]. Retrieved from: http://news.bbc.co.uk/1/hi/world/europe/7959853.stm
BBC News (2008), Chemical firm to create new jobs [Online]. Retrieved from: http://news.bbc.co.uk/1/hi/scotland/tayside_and_central/7523182.stm
BERR (2008), Globalisation and the changing UK economy [Online]. Retrieved from: http://www.berr.gov.uk/files/file44332.pdf
Body, D. (2008) ‘Management, An Introduction’, 4th Edition, Chapter 5 (Corporate Responsibility), pp. 155-163. Essex: Pearson Education Limited.
Corporate Watch (2008), Syngenta [Online]. Retrieved from: http://archive.corporatewatch.org/genetics/commercialisation/syngenta.htm
Guarnieri, R. & Kao, T. (2008) Leadership and CSR – a Perfect Match, People & Strategy, 2008, Vol. 31 Iss. 3, pp. 34-41.
Health and Safety Executive (2009), Safe Use of Pesticides [Online]. Retrieved from: http://www.pesticides.gov.uk/safe_use.asp?id=205
Health and Safety Exacutive (2009), What are Pesticides? [Online]. Retrieved from: http://www.pesticides.gov.uk/about_pesticides.asp?id=219
Porter, M. E. & Kramer, M. R. (2006) Strategy & Society, Harvard Business Review, Vol. 84 Iss. 12, pp. 78-92.
Smith, C. (2003) Corporate Social Responsibility: Whether or How? California Management Review, Vol. 45, Iss. 4, pp. 52-76.
Syngenta Corporate Responsibility Report (2007). Available from: http://www.syngenta.com/en/corporate_responsibility/pdf/Syngenta_CRR2007_english.pdf
Syngeta GLOBAL (2009), Strategic Goals/ Visions [Online]. Retrieved from: http://www.syngenta.com/en/about%5Fsyngenta/vision.html

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