Introduction
Rapid development of the world economy connected with emergence, development of new technologies and means of communication often misses penetrating consideration of ethical component involved in the process. However, ethical issues which regularly appear on the scene are drawing public and governments’ attention more often.
Brazil is one of the developing countries of Latin America which has substantial potential for economic growth. At the same time Brazil is a capacious market share for international companies and organizations (Griesse, 2008).
This paper is devoted to the research of ethical issues of DuPont and Monsanto companies operating in Brazilian market of genetically modified seeds for agriculture (DuPont, 2011).
The central aim of the paper is to evaluate the topicality of the problem, represent existing point of views and offer possible resolutions of the ethical problem.
1. Business Ethics in Brazil
Brazil was the second country in Latin America after Chile (1977) which adapted code of ethics in 1986. This ethics code is considered the most professional among mentioned countries (Zamora, 2003).
Despite of the fact that Brazilian business ethical education has been imported from the USA, yet, there is a room for further development because the models of professional conduct may sometimes face with unique local contingencies (Gazy, 2011).
Recently, business activity of multinational corporations in Brazil is increasing while social, institutional and ecological issues are still emerging. All these factors conditioned the necessity of sustainable ethical code which would pay special attention to utilization of land and natural resources; human rights and social exclusion; institutional corruption and informality (Gazy, 2011).
2. Brief Description of DuPont and Monsanto Ethical Cases
DuPont Company operates in ninety countries including Brazil. DuPont Company’s mission is to put science to work by providing customers with sustainable solutions for safer and healthier life. DuPont creates innovative products for agriculture, nutrition, electronics, communications, home, safety, apparel, and transportation (DuPont official site, 2011).
Brazil belongs to developing countries where agriculture plays an important role since approximately thirty three percent of the Brazilian
GNP comes from agriculture. Moreover, agricultural business in Brazil is responsible for forty two percent of total exports and thirty seven percent of all jobs (Griesse, 2008).
It is important for the national economy to further develop agricultural business because Brazil has huge potential for growth in this economic area. As DuPont offers innovations in the agricultural sphere there is a possibility to stimulate agricultural development with the help of genetically modified (GM) seeds. DuPont has the largest number of patents for such seeds (Griesse, 2008).
On the other hand, new agricultural biotechnologies are the point of a great concern with regard to the safety for human and animal consumption.
Analysis of the opinion of all the stakeholders who participate in ethical decision making showed controversial results. It is not still clear if genetically modified seeds may cause health issues. Moreover, there is no holistic scientists’ point of view regarding this point and it is not difficult to define if one or another opinion is engaged with a certain stakeholders’ group (Griesse, 2008).
It is natural that Brazilian farmers are interested in high productivity, ability of inadequate lands cultivation and nontoxic agrochemicals utilization which are the benefits of genetically modified seeds. At the same time technological package for small farmers could be very expensive. This could cause reluctance from farming, unemployment in rural areas and other undesirable consequences (Griesse, 2007).
Ecologists are concerned about biodiversity of Brazilian flora and fauna which could be interrupted by the utilization of genetically modified plants. In order to govern this problem a number of laws was enacted by Brazilian legislation. Brazil is also a participant of the Convention on Biological Diversity (Guerrante, 2004).
Naturally, DuPont has an obvious commercial interest in selling GM seeds. DuPont has been aggressively investing in life-science products and acquired seed patents. Till 1999 when DuPont acquired Pioneer Hi-Bred International Inc., it was a chemical company. The acquisition helped completely change the concept of the company which began producing hybrid plants such as wheat, corn, and soybeans (Guerrante, 2004).
DuPont positions itself as an ethically and socially responsible company. It is a member of United National Global Compact and Responsible Care Initiative which are aiming at reduction of negative environmental impact, workers and public in general (Munn, 2000).
The other side of the issue is that the company has not been an originator of participation in Responsible Care Initiative. Public opinion is that the Company participated in the Initiative because of outside pressure or to justify its position due to lawsuits and bad publicity. Public activists stated that participation in the Initiative did not emerge from within the Company.
Scientists’ views are divided into two groups: critics and proponents of GM seeds. Critics of the advantages of GM seeds argue that they could pose health risk, can genetically pollute other organisms and provoke loss of genetic diversity. They also state that GM seeds characteristics are not learned enough and sometimes organizations do not give sufficient information about them (Griesse, 2007).
The proponents of GM seeds contend that agriculture is considered a primary priority to the Brazilian economy. They claim that advanced technologies could help maintain competitive advantage in the global market. It is very difficult to judge which view is relevant because both groups of scientists are funded by antagonized organizations (Griesse, 2008).
Civil society organizations, such as Greenpeace, are the strongest opponents of using GM seeds who claim that “there is no technical regulation for the secure use of these products and include” (Griesse, 2008, p. 7).
Consumers in developing countries, for whom GM crops are initially reserved, cannot be taken into account as active participants in resolving this dilemma because the information they possess is very limited. They often are unable to understand the scientific aspects of the issue in virtue of lack of educational background. These are the reasons why it is difficult for the consumers to make a proper decision regarding benefit and harm of GM products. Recently, DuPont offered special dietary benefits for its consumers in the form of higher quantities of vitamin A and proteins in GM crops. But the competence of consumers’ view is questionable because even scientists’ opinions regarding this issue are divided (Griesse, 2007).
As the research showed, each of the stakeholders of this discussion presents restricted ethical perspective, thus, it is difficult to define which opinion is relevant.
DuPont is not the only company which faced similar ethics issue in Brazil. Monsanto is another company with similar background which faced the same ethical problem when operating in the Brazilian market (O.C. Ferrel, Fraedrich & L. Ferrel, 2011).
Monsanto is a leader in the market of GM seeds. As it is known, approximately ninety percent of GM seeds are produced by this company. Like DuPont, Monsanto was accused by farmers, governments and social activists in making attempts to destroy biodiversity. In addition, the company was accused in problems with patents and organizational misconduct (O.C. Ferrel, Fraedrich & L. Ferrel, 2011).
On the other side, Monsanto’s products are very popular both in developed and developing countries. It provides 20,000 people in 160 countries by working places and is considered top employer in Argentina, Mexico, and Brazil (O.C. Ferrel, Fraedrich & L. Ferrel, 2011).
Both of the companies, DuPont and Monsanto invested significant amounts in biotechnology. Therefore, it is obvious that they take a great interest in promoting their GM products. Thus, their opinion cannot be considered objective.
The advantage of GM seeds is that they do not require herbicides or pesticides for their growth. It gives the possibility to save costs and have abundant crops without utilization of chemicals.
New technologies gave the farmers the possibility to have higher incomes. Their quantity has significantly increased after implementation of new technologies. As a result, new GM technologies which were implemented gave rise to many of developing economies.
The experience of both multinational giants is very similar, but there is no any adequate decision concerning advantages or disadvantages of GM seeds. It is obvious that there must be a sophisticated ethical decision because this issue relates the interests of many stakeholders. It is very important to be objective in this situation.
3. Possible Solutions of Ethical Issues
Taking into account information analyzed above, there are several solutions for resolving existing ethical problems, namely:
companies which operate in the Brazilian market could engage academic institutions, government, organizations together with civil societies when making the research of a certain product in order to adapt this product to the market demand (Griesse, 2008);
research and development branches of the companies should be located within southern countries so their needs can be taken into account on the stage of the product development (Griesse, 2008);
there must be a fund which would provide independent research in the sphere of new technologies (Griesse, 2008);
establishing organizations, associations; forming governments and industries may help resolve managerial issues concerning logistics and segregation of products before these problems become urgent;
implementation of ethical educational programs and programs for customers may help raise producers’ fairness and consumers’ culture;
new products must be discussed in their inception rather than their commercialization;
academic institutions must provide spaces for discussion, negotiation, and participation.
The above mentioned strategies require cooperation from industry, government and civil organizations. Negotiation process gives the possibility for defending each stakeholder’s position. It is possible to find adequate solution for each ethical issue in the communication process.
Conclusion
Ethical issues are the point of great concern nowadays. Many scientists who studied this topic claim that there is a crisis of ethics. There is no company in the world which is insured against ethical issues in business, thus, it is essential to study possible concerns and get ready to resolve them.
Two cases given above provide a lot of information to think over because ethical issues that rose are controversial. On the one hand, there is a probability that GM seeds are harmful for health and could destroy biological diversity. On the other hand, ceasing production would cause unemployment, instability and economic decline.
References
DuPont. (2011). DuPOnt official website. Retrieved from http://www2.dupont.com/Our_Company/en_US/
Ferrel, O.C., Fraedrich, J., & Ferrel, L. (2011). Ethical Decision Making and Cases (8th ed.). Mason: Cengage Learning.
Griesse, M. (2007). Developing Social Responsibility: Biotechnology and the case of DuPont in Brazil. Journal of Business Ethics, (73), 103-118.
Griesse, M. (2008, February 10-11). Social Ethics for New Technologies: The Case of DuPont in Brazil. Retrieved from http://www.gsim.aoyama.ac.jp/ORC/iBiZ2008/papers/Griesse.pdf
Munn, K. (2000). Responsible and Related Voluntary Initiatives to Improve Enterprise
Performance on Health, Safety and Environment in the Chemical Industry, International
Labour Office. Retrieved from http://www.ilo.org/public/english/dialogue/sector/papers/respcare/index.htm
Guerrante, R.D.S. (2004). Comportamento Estratégico das Grandes Empresas do
Mercado de Sementes Geneticamente Modificadas. Impulso, 15(36), 59-76.
Zamora, R.M.F. (2003, 1-9 August). Codes of ethics in Latin America. Retrieved from http://archive.ifla.org/IV/ifla69/papers/087e-Fernandez-de-Zamora.pdf
Gazy, I. (2011). Ethical Management Education in Emerging Economies: A View from Brazil. Academia, Retrieved from http://insper.academia.edu/GaziIslam/Papers/924026/Ethical_Management_Education_in_Emerging_Economies_A_View_from_Brazil
