- Key Facts
- A lawsuit was filed in 1979 on behalf of veterans that were harmed by Agent Orange (chemical product). Monsanto agreed to settle for $180 million.
- In 1987 Monsanto was found liable for failing to warn Missouri town residents about the risk of a 1979 chemical spill. The jury awarded plaintiffs $16.2 million in punitive damage.
- Monsanto agreed to pay $1.5 million fine for bribing an Indonesian high official for bypassing an environmental study.
- Criticism for Roundup Ready: Roundup Ready was a genetically modified soybean crop launched by the company in the year 1996 that could resist a powerful pesticide called Roundup that had the capability to kill any green plant. The farmers sprayed roundup on the fields as all weeds were supposed to be killed except Roundup Ready. The sale of soybean products was highly opposed in the UK and demonstrations were held against the company. There are concerns about the safety of genetically modified food for humans and there were no evidence for impact of genetically modified food on human health and the environment .
- Gene Flow: The resistance of the genetically modified crops to the pesticides may lead to the creation of super weeds (through pollination of genetically modified plants to other plants) that cannot be controlled by any pesticides and will thus keep on growing in the environment with a developed resistance to the most effective weedicides and pesticides. This may cause harm to the existence of other plants on earth..
- Allergy in Humans: Some humans may be allergic to the genetically modified foods and consumption of such foods may trigger an allergic reaction in these people.
- High consumption of herbicides: Monsanto rounds up ready soybean production led to the consumption of herbicides from 10 to 30 percent, according to the reports . According to latest reports, the genetically modified plants consume much more herbicides and increased toxicity among the consumers .
- Labeling genetically engineered seeds and foods: Many organizations and countries insists on the labelling of the genetically engineered seeds and foods so that the consumers are aware that they are purchasing genetically modified products.
- Identification of stakeholders and their stakes
- Dilemma/Issue posed to management
The following dilemmas are posed to the management of Monsanto:
- Should the company continue the production of Round up ready in the long run?
In view of the intense criticism faced by the company over its genetically modified product Round Up Ready that caused a substantial danger of harm to the environment through the production of super weeds and super insects and concerns over the safety of consumption of genetically modified
- How can Monsanto protect its brand and satisfy the demands and the needs of the various stakeholders?
Monsanto needs to protect the brand image among the customers by providing them with superior quality products and also convincing them that the products are fit for human consumption and are safe for humans. The company also needs to address the concerns and the demands of the various stakeholders that are affected by the actions of the company.
- Alternatives open to Monsanto Management
The following alternatives are open to the management of Monsanto:
- Roll Back Round Up Ready
Monsanto management can roll back the product from the target market as the product Round Up Ready is being banned in many countries over the safety concerns and many countries have already banned Round Up Ready production and sale.
- Enhance Round Up Ready/ Product Augmentation
Monsanto management may launch an enhanced version of Round Up ready that is based on a thorough research and development in the field of genetic engineering. The enhanced product should be safe for human consumption as food and also for the environment.
- Impact of alternative courses of action on stakeholders
- Action Management Actually Took
Monsanto took the second alternative and continued the production of the Round Up Ready seeds. The company has developed the product over the past few years and has launched enhanced versions of the products such as Roundup Ready Extend Crop System that help farmers by providing them a more flexible and effective system of eliminating weeds and improving their crop efficiency .
- Cost/benefit analysis of management's actual course of action, as to each stakeholder
- Aftermath of incident
The following can be considered as the aftermath of the incident:
- The case against Monsanto has been in the courts have been won by the company and the court has issued orders to resume the sale of round up ready seeds for the commercial use.
- The company is alert and concerned about its corporate social responsibility towards the various stakeholders.
- Labelling laws have been introduced to identify genetically modified crops for the customers that are the actual consumers of the genetically modified products.
- Lessons other corporations can learn from this case
Following lessons can be learnt from this case for other corporations:
- Extensive Research and development: Organizations should invest a considerable time in the product research and development and ensure that the products are safe for the human consumption as well as the environment. Adequate testing of the product should be done prior to commercial launch.
- Test Marketing: A test marketing of the product should be conducted in order to ensure better customer acceptance and feedback of customers at an earlier stage.
- Cost Benefit Analysis: Organizations should conduct a cost-benefit analysis so as to estimate the benefits and cost of the new product development.
- Recommendations
The following are recommended for Monsanto on the basis of the current case study:
- Customer Feedback: Monsanto should involve customers in the production process and should take timely feedback from the customers over the use of the products and its potential benefits and the disadvantages.
- Approval from regulatory authorities: Monsanto should take prior approval for all its upcoming products that involve genetically modified plants from the concerned regulatory authorities and the research institutions so as to assess the safety of the products for the general human consumption.
- Environmental Safety: Environmental safety should be a prime concern for the company and Monsanto should invest in technologies that are safe for the environment.
Executive Memo
Greetings
This memo is to specifically provide a future course of action and recommendations for the Monsanto Genetic Engineering of Plants. Please feel free to go through the document and provide your feedback.
Recommendations
The following are recommended for Monsanto:
- Customer Feedback: Monsanto should involve customers in the production process and should take timely feedback from the customers over the use of the products and its potential benefits and the disadvantages.
- Approval from regulatory authorities: Monsanto should take prior approval for all its upcoming products that involve genetically modified plants from the concerned regulatory authorities and the research institutions so as to assess the safety of the products for the general human consumption.
- Environmental Safety: Environmental safety should be a prime concern for the company and Monsanto should invest in technologies that are safe for the environment.
Future Course of Action
Monsanto should continue the product development of genetically modified crops that enhance the agricultural productivity and are also safe for human consumption.
Bibliography
- Anon., n.d. Genetically Modified Foods. In: s.l.:alexander-p-bmba9201-modified2.pdf.
- Bronner, D., 2014. Herbicide and Insecticide Use on GMO Crops Skyrocketing While Pro-GMO Media Run Interference. [Online] Available at: http://www.huffingtonpost.com/david-bronner/herbicide-insecticide-use_b_5791304.html[Accessed 5 November 2014].
- Mercola, 2014. Seeds of Evil: Monsanto and Genetic Engineering. [Online] Available at: http://www.organicconsumers.org/articles/article_29283.cfm[Accessed 5 November 2014].
- Monsanto, 2014. Roundup Ready Xtend Crop System. [Online] Available at: http://www.monsanto.com/products/pages/roundup-ready-xtend-crop-system.aspx[Accessed 5 November 2014].
