Sustainability Practices of Monsanto: A Review

Running head: Sustainability business management
Sustainability business management

Sustainability business management
Abstract
The paper reviews the details and facts about the company MOSANTO, which is an American
International company. The purpose of this paper is to study about the company, i.e. deep
knowledge about the company and its sustainability practices. It explains the social and
environmental issues that have been faced by Monsanto Company. The reasons due to which
MOSANTO gained popularity and further the reasons because of which it gained negative
publicity are discussed in this paper. Some recommendations for triple bottom line have been
explained in this task.
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Sustainability business management
Table of Contents
Abstract.......................................................................................................................................................2
Introduction.................................................................................................................................................4
Stakeholders................................................................................................................................................4
Sustainability of the company.....................................................................................................................5
Triple bottom line........................................................................................................................................6
Social and environmental issues..................................................................................................................7
Recommendations and how the company addresses Triple Bottom Line..................................................13
Ethical theories, strategies or approaches as a priority. Strategies that advance the corporation to a
sustainable competitive advantage.............................................................................................................13
Bad publicity (ethical/ unethical aspects)..................................................................................................14
References.................................................................................................................................................15
Appendices................................................................................................................................................17
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Sustainability business management
Introduction
The paper discusses sustainability practices of MONSANTO which provides agricultural
products and services. It explains the social and environmental issues that are being encountered
by the company while initiating business activities and operations. Here is the discussion about
the triple bottom line and ethical theories that play an empirical role within the organization. It
explains that how GRI index disclose the social and environmental issues.
MONSANTO is an American multinational company which deals in agrochemical and
agricultural products. It was founded on September 26, 1901 by John Francis Queeny. The
company’s headquarter is in Creve Coeur, Missouri, US. It has facilities in 69 countries around
the world. The company produces pesticides, herbicides, crop seed and GMOs for agriculture
purpose and hence generating revenue of US$14.64 billion as on August 31, 2017. At present,
the CEO of the company is Hugh Grant. It is a sustainable agriculture company, known for its
strategies on sustainable agriculture which has helped the farmers across the globe to grow more
grains in a more modern yet natural way (Monsanto, 2018). MOSANTO is a leading producer of
genetically engineered seeds. The company also works in research and development sector to
bring wide range of solutions related to problems on agriculture. Its notable research on catalytic
asymmetric hydrogenation is a big achievement. It stayed one of the best 10 U.S. chemical
organizations until the point that it stripped the greater part of its business in the year between
1997 and 2002, through a procedure that concentrated the organization on biotechnology. On the
other hand, MOSANTO was the first company to produce light emitting diodes (LED) in large
quantity. It has been analyzed that MONSANTO is a Fortune 500 company and over 20,000
employees working (Monsanto, 2018).
Stakeholders
MONSANTO is a public company, thus it has shareholders and stakeholders. As mentioned on
the website, their stakeholders range from NGOs, academia, research institutions, public health
organizations, government, the food industry, consumers, community neighbors and our farmer
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Sustainability business management
customers (Hall, Bachor and Matos, 2014). The marginalized stakeholders of the company are
farmers, as they do not get the profit sharing from the company. These stakeholders are
responsible for maintaining the business and for other technical as well as non technical
advancements. The company protects the rights and interest of the stakeholders. The
underestimated stakeholders are those whose continued association is absolutely essential for the
company’s survival, these include customers, employees, investors, shareholders as well as the
governments and the communities that provide necessary infrastructure (Lawrence and Weber,
2014). Overlooked stakeholders are those who do not engage in the transactions with a company
thus are not significant for the survival of the firm. Monsanto maintains an ethical and unique
culture that can effectively respond to its various stakeholders. The stakeholders should balance
the moral intensity from one stakeholder with the moral intensity from other stakeholders. The
company is also working for the welfare of the stakeholders (Charlebois and Van Acker, 2016).
Sustainability of the company
As stated above that MONSANTO is a sustainable agriculture company. The company has
followed strategies that made its products an environmentally sustainable. Hugh Grant, CEO,
said, “At Monsanto, people are committed to helping create solutions to these challenges while
helping to take care of our planet, people and the communities where they live and work.” The
approach that MOSANTO follows is assessed by global materiality and agrees upon 17
sustainable development goals (SDGs). It harmonizes with the 2030 development agenda of
United Nations. The seeds sold by company go through various steps which make them more
productive. These improved seeds make use of Biotechnology. Varieties of seeds are made by
advanced breeding techniques. Before planting those seeds microbial are applied to seeds for
more nutrients (Benn, Edwards and Williams, 2014). Further crop protection systems are
followed by using pesticides which facilitates the sustainability practices. Digital tools are
promoted by the company which increases the sustainability. All these methods improve the
efficiency in farming. All these practices also help in reducing the social and environmental
issues of the company. The social and environmental issues entail water wastage, pollution,
energy issues, child labor and habits and culture of the people. By 2017, MONTANSO has
reached 92% of its goals to reduce GHG emission intensity by these practices. It has helped
farmers use 1/3 rd fewer resources per unit. The organization has increased the irrigation water
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Sustainability business management
efficiency to 77%. Their commitment has potentially saved 30 to 80 billion gallons of water
every year. The soil health is well maintained by the products delivered by MONTANSO (Hart,
2017). The company has also established 70 habitats for butterflies, honey bees, hence promoting
sustainable landscapes. Regarding social issues, the company has improved the lives of farmers
to a great extent and hence helping the society. Their consistent availability has provided food
and nutrition security. It means that farmers can contact anytime if they are facing any issue.
According to the Sustainability report- 2017 of the company, 2.5 million farmers are trained on
sustainable farming practices, 1.5 million people in sub-Saharan Africa have been helped
regarding food security and they have reached 100K farmers in India regarding project Share2.
Thus it is said that MONTANSO believes in sustainable growth (Bansal, 2017).
Triple bottom line
Yes, the company focuses UN SDGs, and Global compact. As the sustainability report of year
2017 says, MONTANSA accords to UN’s 17 Sustainable Development Goals (SDGs) and the
UN Global Compact, among others. There are particularly 6 SDGs which are relevant to the
business. First the company focuses on better planet. The steps have been taken by the company
to make this planet a better place to live (Elkington, 2013). It follows SDG number six, thirteen
and fifteen which are clean water and sanitation, climate action and life on land respectively.
This company sets environmental goals every year and then takes corresponding actions to
achieve them (Savitz, 2013). This commitment by the company is managed strategically.
MONTANSO main aim is to use fewer natural resources and make life sustainable. Next
important concern of the company is better lives (Croson and Treich, 2014). Under this, the
SDSs attained by the company are- no poverty, zero hunger and decent work and economic
growth which are number one, two and eight respectively. Food and nutrition security are the
areas of focus. Quantitative goals are set and achieved every year to improve the quality of life of
many people (Henriques, 2013). Better partner- For working with integrity, MONTANSO has
accorded with SDGs number nine, twelve and seventeen which are industry innovation and
development, responsible consumption and production and partnership for goals. The company
aims at employee health and safety, diversity in organization, human rights and follows the
ethics and is well governed (Hayes, 2015).
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