Communication in Business 100 - Monsanto Company's Proposal

Monsanto Company's Proposal To Local Network

Communication in Business 100

Rebecca Licacristi Budianto - 15359111 Curtin University

2011  Introduction

           Monsanto goal is to develop sustainable agriculture, by help the farmers to produce more foods to support the people to improve lives. Monsanto had decrease hunger and lack of nutrition by keep producing seeds and foods for future generations. Monsanto has state to do right business in ethical way by commit to transparency, understand the employees, respects society views, shares information and knowledge, delivers benefits to stakeholders and develops new products and technology that are acceptable (Monsanto 2010).

Monsanto has joined United Nations to improve sustainability and business values both in business and society (A Profile of Monsanto 2005). This submission will propose two of the ten principles that have been choose to help Monsanto achieve their commitment regarding to the local networks. This proposal will request the other company to learn from the mistakes and join Monsanto path to grow towards positive performance in society. The two principles of the Global Compact are:

Labour section	Environmental section
Principle 4- focus on free forced employees in the company.	Principle 9- focus on development of new environmental friendly technologies.

To make these principle works, several actions are considered to be used:

1. Create contract that easy to understand by stating the terms and conditions include the activities that will be held and penalties.
2. Focus on the research and development process with aim towards sustainability.
3. Be transparent and increase availability of information to stakeholders. 

  Recommendations

2.1    1^st Recommendation

Make sure that entire employees are understand what is labour forced and make sure that they understand the business contract that has been create between them and the company.

The recommendation was made to be focus on employees. This strategy is to avoid scandal that probably will happen again relating to company experience in India. High debts results in two farmers commit suicide by drink Roundup products and become global issues (Stuijt 2009). Company charges the farmers who use company technology for GM seed and them who failed will not be able to pay. We encourage company to define what the job requirement is by providing much information truthfully without promising too much and blaming on employees and not forcing the employees to work if they might feel they are not able. The company cannot be selfish for sake of company profits and this related to Principle 4 of Global Compact (Global Compact Principle Four 2009).

2.2       2^nd Recommendation

Change the company aim from profits approach to sustainability approach.

The recommendation will focus on social groups and public views. Our experience in using Polychlorinated Biphenyl (PCB) and throwing the wastes near residence in Alabama is risky for environment and society. The company indirectly harms the neighbour’s life and contaminates the environment for several years. The society wants the company to be responsible for what they have done in their area. Sustainability means recycle or handles the wastes, protect the neighbours and employees from the danger in research and development failure (Rendall 2005). The aim is to protect the environment to produce more in longer-term to make profits in longer-term too. If company implement sustainability, as long as the company has the resources, they will be able to create profits and survive in markets and this is related to Principle 9 of the Global Compact (Global Compact Principle 9 2010).

2.3       3^rd Recommendation

Transparent and share the information to stakeholders so they might know what the benefits in using the technology and make sure it able to be used by other company too.

Transparent means let the society know how company operating. The used of environmental friendly technology is to reduce inefficiency operation and decrease contamination (Eco Friendly Technology 2007). The first Biotechnology was introduced by Monsanto. It helps to decrease the production costs, improved product quality and decrease in the use of chemicals which lead to the positive effect on environment (Knight 2011).  Biotechnology is the company’s tool. The company also need to create a technology with society function, for example, technology to clean the wastes to reduce environmental impact.

Monsanto might share this technology to stakeholders so the stakeholders especially the investors know how their money being used, in positive or negative purpose. When the stakeholders support any activities in the company, there is value. When there is value towards company, people who work or related to company will also feel confidence and keep improving good job to develop new innovations and technology which results in better product that meets society needs. 

Benefits for Local Networks and Key Stakeholders

Local Network Members	Key Stakeholders
Create positive public image and publicity – company members will be seen like proactive to the society regarding the issues by put attention on them.	Improving lives – the society will have better life for future generations.
Create good relationship with stakeholders – the stakeholders will feel safe and comfortable to cooperate with company.	Sustainability – less environmental risk, more job opportunities, long-term relationship with company, future warranty.
Increase profits in acceptable way – good relationship between company and their stakeholders will convince the society to buy the product because the society can see the company progress.	Social contract – trust that creates between society and company will force the company to keep responsible for every action and do business in the right track.
Long-term business – the acceptable technology that being used will result in long-term profits and environmental benefits, sustainable business.	Business cooperation – creates business solidarity, more business opportunities and good communications.

 Predicted Risks and Challenges

The risks are company must be aware to the stakeholders. Stakeholders have their power to take over the situation. The company must be proactive and put more effort in give response to social issues sooner in friendly ways. The company need to be prepared because profits might not increase faster and stable easily, lots of money will be needed. The competitors might perform better by technology or information that being shared or by knowing how the company operates, high competition.

The challenge is, trust is not easy to be build, it need much time and energy, particularly when the stakeholders had bad experiences with the company (Monsanto’s Dark History 2011). But, as long as the company try and keep doing better each day, the support will be gathered from entire internal stakeholders, which will influence external stakeholders and results in positive values in society. To conclude, the company need to begin from inside that are the employees, to outside of the company that are the social activists. The business need to apply problem awareness, flexibility and fast adaptation to social contract that keep changing (Junnarkar 2011).

Making It Happen

Society and Business are involved together and participate for each other activities - solidarity.

These principles are important to create values and trust in society. By the trust, the society will be interested to get involved in business activities. Because, both business and society cooperation is needed. It will results in greater benefits and high profits for both groups in long-term period, sustainability.We hope that this proposal will be consider and accepted to be taken by the Local Network Member for future actions. 

Yours Sincerely,

Rebecca Licacristi Budianto

Director of Corporate Communications

Monsanto South Africa

 References

A profile of Monsanto in South Africa. 2005. African Centre for Biosafety. http://www.munlochygmvigil.org.uk/monsanto_southafrica.pdf

Eco Friendly Technology. 2007. Green Living Ideas. http://greenlivingideas.com/2007/10/22/eco-friendly-technology/

Global Compact Principle Four. 2009. United Nations Global Compact. http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/Principle4.html

Global Compact Principle 9. 2010. United Nations Global Compact. http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/principle9.html

Knight, Danielle. 2011. Costs and benefits of Biotechnology. TWN Third World Network. Accessed September 1, http://www.twnside.org.sg/title/biotech-cn.htm

Rendall, Estelle. 2005. No peace without caring for earth. Biowatch South Africa. Accessed August 31, http://www.biowatch.org.za/main.asp?include=docs/articles/2005/art0728.html

Stuijt, Adriana. 2009. “Monsanto GM-corn harvest massively in South Africa.” Digital Journal. http://digitaljournal.com/article/270101

Monsanto’s Dark History: 1902-2011. 2011. Best Meal Info. Accessed September 1, http://bestmeal.info/monsanto/company.history.shtml

Monsanto. 2010. United In Growth. Accessed September 1, http://www.monsanto.com/investors/Documents/Pubs/2010/annual_report.pdf

Junnarkar, Bipin. 2011. Creating Fertile Ground for Knowledge at Monsanto. Accessed September 1, http://www.providersedge.com/docs/km_articles/Creating_Fertile_Ground_for_Knowledge_at_Monsanto.pdf