Monday, 4 February 2013

Communication in Business 100 - Critical Essay Monsanto


Monsanto 
Communication in Business 100

Rebecca Licacristi Budianto - 15359111
Curtin University
2011





Monsanto is an agricultural company that began in year 1901 and had survived until today. The company has been operating in many parts of the world from North America, South America, Europe, Middle East, Asia Pacific and Africa. Saccharine is the very first product that being creates and nowadays the company has been produced and sells the seeds (Monsanto 2011). Today’s, the company famous for the agricultural biotechnology genetically modified (GM) seeds, which brings many confrontations in numbers of countries. This essay will discuss about the positive and the negative performance of the company and the implications to the society.

On the positive side, Monsanto are motivated to improve life for the next generations, include the environment and economic of the country. As an agricultural company, they do their best to provide value through creating the products. They help in decrease hunger and lack of nutrition through their products. They use biotechnology and some chemicals to harvest the seeds and also use agronomics to improve farm-management practices to reduce soil erosion (Monsanto 2011). The first concerns of Monsanto’s responsibility are overtaking and take care of their workers and society in order to sustainability. Sustainability depends on cultural, social and environmental factors. Now, they are trying to use less resource to multiply crops to decrease habitat damage and develop water quality. Biotechnology help in sustainability, it could improve the efficiency of agriculture by reducing inputs and increasing resources (“Sustainable Agriculture” 2009, 22).

For their achievements, Monsanto is the largest seed company in the world. They are the first mover advantage for biotechnology. Ninety percent of the GM farms in the world belong to them, it can be said that the populations are depend on them. Monsanto become one of the top ten United States chemical companies. Monsanto covered pharmaceuticals, polymers, food additives, chemicals and agricultural products. The company has grown and become the second biggest seed company and the third biggest agrochemical company across the global (The World According to Monsanto 2008). In 2008, the company has won “The American Business Awards” for 2008 winner in Most Innovative Company nomination category (Sixth Annual American Business Awards 2011).

On the negative side, the most controversial Monsanto activities are related to Agent Orange, Aspartame, polychlorinated biphenyl (PCB) and Bovine Growth Hormone (The World According to Monsanto 2008). Thirty years after using Agent Orange during the Vietnam War, the impact still occur on the pregnant mother in Vietnam, which results in abnormal babies born and most of them cannot survive to live while they are born. Monsanto buried PCB near residences in Alabama, makes the citizens contaminated and causing health problems especially cancer (Monsanto’s Dark History 2011). Monsanto knows that PCB is poisoning but they never told their neighbors. The used of PCB in many years results in very bad impact to the environment around the world until today.

Bovine Growth Hormone, injection gives to the cows, to increase milk production. It contains some hormones that dangerous for human. Monsanto bring false advertisements in New York, 1996 and 2006 in France which shows disrespect towards environment. There are two farmers had suicide in India because they having a deep debts by growing the cottons and it become the international scandals. The tragedy makes the farmers in India willing to stop growing the cotton. They contaminate traditional corn in Mexico and today unsolved global issue is Roundup toxic which hidden in GM products (Monsanto’s Dark History 2011).

Corporate Social Responsibility (CSR) has a part in business activities regarding to the society. Greenpeace is one of the social interest groups that against Monsanto. Monsanto’s lies in various ways by manipulate and spin doctoring the research of GM products. Monsanto unsuccessful labels their product (Global Status 2007). The company does not willing to put more money to do better research and development for their products. Many scientists found the bad side of their products and try to stop the company, but they unsuccessful because the company wants to protect their secret. The company can influence GM food policy government as they had a great relationship with the top government. They hide the truth from government authorities and also their neighbors by dirty tactics that the company did. They will sue anybody who against them or revealed their secrets (The World According to Monsanto 2008). So the farmers or the scientist cannot do anything against the company.

Many social interests groups and non-profit organization such as, Non Governmental Organization (NGO), GM Watch, Organic Consumer Association (OCA), start their action to against Monsanto. Social interest groups will active only when they are needed and based on the evidences. This is where social media and public affairs play their role in society. Social media such as Facebook, Twitter, YouTube and others are connecting people around the world. Many the organizations create their web page, and join the social networking facilities to give people around the world any information without supporting any sides. Basically, people more trust worth-of-mouth rather than advertisements and other promotions.

Public affairs could influence the people easily and encourage them to support their activities because people also can judge according to their perceptions by seeing the facts and evidences that being provides. OCA creates Millions Against Monsanto campaign in Michigan, Washington, Memphis, Minnesota and Southern California with aim to against Monsanto. People around the world start to know and join the campaign. For today’s issues, people around the world are demanding for GM food labeling. As they realize that the company does not have ethics towards the society, they do not trust Monsanto anymore (Phil 2008).

The company role in society should be helping the farmers to provide enough foods to all people in the world in order to guarantee the life for the next generations. But in reality, the company not only provides their help to the farmers. They also try to control all the foods in the world (WANTED 2002). The company is hoping to achieve high profits from their selling and become powerful. They wanted to have all farms land in the world by approach the farmers to use their product with agreement (Environmental Concerns 2010).

Monsanto try to manage the ethical culture with their stakeholders. Their stakeholders are the consumers which means, the farmers and the population. The farmers who can afford the products are able to protect their farms easily, the farmers can save their money to employ fewer workers and also save their time. But on the other side, by using the products, could be dangerous for human life. The users and the people who lives near the farms could be contaminated indirectly which is dangerous for their health.

The populations need food to eat which grow by the farmers who mostly used Monsanto’s products. Most of the products are non-organic products because they use pesticides, herbicides and the other chemicals. As the education level changes, people are more concern about their health. People have their rights to eat healthy food and to know what they eat. They demand for food labeling for Monsanto products, but rejected by Monsanto. As lack of trust and communication between the company and the consumers, the consumers do not trust the company and willing to not use the product anymore and prefer to eat organic food (Goldman and Clancy 1991, 93).

The citizens or the neighbors are the people who live near the company. They have the rights to be protected from the dangerous chemicals and wastes from the company. The company should be responsible to reduce their waste or at least confess to the people that the waste would be dangerous so the government can take action for the citizens. But again the company hides the information and makes the society angry. The profit which company able to get can be measured, but the waste that they throw might not be measurable.

Monsanto has many shareholders include thousand numbers of small investments, pension funds and banks, as they know Monsanto is a successful company. They back up the company for the strategy to minimize risks of being threatened from outside groups (Is Investing in Monsanto Ethical? 2008). Maintain relationship with the stakeholders could hold the success for the future.

The community, many social interest activists and environmental protection groups go against Monsanto. The community’s aim is to protect the environment and also stop food poisoning. By the community activities, the people get influence and willing to use organic food. As discussed by Lim (2009), organic food do not use chemical toxic that may harm the environment and also could poisoning the animals which is dangerous for human. Because at the end, human is the one who will consume it.

As time pass by, the business task and challenges are changed, it will influence the interaction and communication of the business. Huge forces that come from social contract and social media put a lot of matters to the company. The challenges for the business are they should win the world’s population heart. By prove that they are changed, become more honest, no more hiding the facts and friendly to the environment for the sake of sustainability environment. According to the Iron Law of Responsibility theory (Lorenz 2011), the company has to be responsible for the environment as they used it to produce their products for their profits. The profit which company able to get can be measured, but the waste that they throw might not be measurable. If they not protect the environment, in the future they will tend to lose it or not sustainable.

To conclude, the company should respect the workers, the consumer and also the environment. The company value is different and disconnect with what they have done so far especially in the past. The company value is to take care of their workers and society with aim to create sustainability as the realized that seed business is a long term business. But what the society sees is different, they harm the environment and risk human life. The forces from society in form of critics by social interest groups had changed their behavior towards their products and the society.

The business had successful to provide the needs and expectations of the society, but not in a positive way. The company could do much better if the company could improve the company practices by doing more research and development for human and environmental safety. The society would be much more satisfied and happy to use their products if the company could maintain their achievements and also change their values and ethics at the same time. Because business is a part of society, without society exists, Monsanto could not produce and gain anything in the future.





Reference Lists

Environmental Concerns Versus Monsanto’s Genetically Engineered Food. 2010. Farms Communities.com. http://www.farmcommunities.com/2010/05/environmental-concerns-versus-monsanto’s-genetically-engineered-food/

Global Status of Genetically Engineered Crops. 2007. Greenpeace. http://www.greenpeace.org./international/en/publications/reports/global-status-of-genetically-e/.

Goldman, Barbara J. and Katherine L. Clancy. 1991. “A survey of organic produce and related attitudes of food cooperative shoppers.” American Journal of Alternative Agriculture 6 (2): 89-96. http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=6451692&next=true&jid=AJA&volumeId=6&issueId=02

Is Investing in Monsanto Ethical? 2008. Trends I’m Watching. http://www.trendsimwatching.com/2008/04/is-investing-in.html

Lim, Alvin. 2009. “Organic Food”. The Consumer 134 (1): 2008-2009.

Lorenz, Patricia (2011). “Lecture 3: Rise of Special Interest Groups and Criticism of Business.” Power Point Lecture notes.

Monsanto. 2011. Who We Are. Accessed July 29, http://www.monsanto.com/whoweare/Pages/default.aspx

Monsanto’s Dark History: 1901-2011. 2011. Best Meal Info. Accessed August 2, http://bestmeal.info/monsanto/company.history.shtml

Phil, Alan Mchugen, D. 2008. Labeling Genetically Modified (GM) Foods. Accessed August 1, http://74.6.117.48/search/srpcache?ei=UTF8&p=people+demand+for+gm+food+labelling&fr=ytff1msgr&u=http://cc.bingj.com/cache.aspx?q=people+demand+for+gm+food+labelling&d=5009465423693898&mkt=enUS&setlang=enUS&w=303f922b,13cb1e50&icp=1&.intl=us&sig=ApbrzsrJwmg3tACX5CESyA--

Sixth Annual American Business Awards Crown Winners of America’s “Best in Business”. 2011. The American Business Awards. Accessed July 30, http://www.stevieawards.com/pubs/press/404_2192_19016.efm

“Sustainable Agriculture: Feeding The World.” 2009. Global Food Crisis 327: 21-22

The World According to Monsanto. 2008. GreenMuze. http://www.greenmuze.com/reviews/films/494-the-world-according-to-monsanto.html

WANTED: Monsanto for crimes against the planets. 2002. Greenpeace. http://www.greenpeace.org/interntaional/en/news/features/monsanto-are-wanted-for-crimes/ 

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