Monsanto: Analyzing Sustainability, Ethics & Business Management

This report provides a comprehensive review of Monsanto, an American multinational company, focusing on its sustainability practices, social and environmental issues, and ethical considerations. It outlines the company's stakeholders, analyzes its sustainability initiatives in line with UN Sustainable Development Goals and the Global Compact, and examines its commitment to the triple bottom line. The report identifies social and environmental challenges faced by Monsanto, using the GRI index to evaluate its reporting transparency compared to industry peers. It also includes recommendations for improving sustainability efforts, a SWOT analysis, and a discussion of ethical theories and strategies employed by the company, and addresses instances of negative publicity and questionable practices.

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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Sustainability business management
Social and environmental issues
Various social and environmental issues such as habit loss, land conversion, soil erosion,
wasteful water consumption and degradation. These issues are faced by the company in the
marketplace. The social and environmental issues have been shown in below table that affects
the sustainability of the firm adversely (Savitz, 2013). The company should focus on the social
and environmental issues to make a leader in the agriculture industry. The GRI (global reporting
initiatives) explains the social and environmental issues that are being faced by the firm. The
social and economic issues have been explained by using GRI index such as GRI 302 energy,
GRI 304 water, GRI 408 child labor, GRI 419 socio-economic compliance.
Compile a table of GRI, compare their
GRI index Standards Monsanto
sustainability
report
Agriculture
industry
standards
Comments
GRI 101 Foundation The company
was incorporated
in 26 September
1901. The
company is
providing a great
contribution in
making
sustainability in
the environment.
The firm is
committed to
helping and
creating
solutions
The agriculture
industry is
founded to
promote and
develop the
farming industry
in order to
improve and
enhance the rural
community’s
standards of
living.
Monsanto needs
to focus on the
needs and
requirements of
the customers to
maintain
sustainability in
the environment.
However, the
company should
follow the GRI
index to maintain
sustainability.
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Sustainability business management
GRI 102 General
disclosures
It has been noted
that the
organization has
been able to
maintain
dynamic culture
and integrity at
the workplace.
Effective and
unique profile is
maintained by
the company in
the global
market. Effective
and unique
sustainability
strategies are
used by the
company.
Monsanto
follows unique
code of conducts
and practices
within the
organization as it
also protects the
rights of the
shareholders by
providing
attractive returns
to them.
Australia is a
major
agricultural
producer and
exporter with
around 325,000
employed in the
agriculture. The
agriculture
culture industry
covers approx
61% Australia’s
landmass.
Effective and
advanced
technologies are
used by the
industry.
It has been
analyzed that
Monsanto needs
to focus on the
strategies and
policies of the
competitors to
win the market.
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Sustainability business management
GRI 103 Management
approach
Management
approach
explains whether
how the
company is using
strategies and
how it is
providing
benefits to the
stakeholders. The
material topics
that are focused
by the company
include product
safety and
stewardship,
climate change
mitigation and
adaptation,
sustainable
chemistry,
business ethics
and transparency,
social health,
human rights,
food labeling,
biodiversity and
ecosystem,
occupational
health, safety and
wellness.
The agriculture
industry follows
all the practices
and policies to
expand and
explore the
business
activities and
operations
globally.
Farming system
approach is
followed by the
industry. The
farm system
approach has two
interrelated
thrusts. One is to
develop an
understanding of
the farm
household and
the environment
in which it
operates and
manages. The
second thrust
includes the
dissemination of
the most
promising
It has been
analyzed that
Monsanto needs
to use farming
system approach
to fulfill the
needs and
requirements of
the farmers.
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Sustainability business management
solutions to other
farm households.
GRI 201 Economic
performance
It is a part of the
GRI
sustainability
reporting
standards. The
company focuses
on the
environmental
sustainability and
their impact on
the economy.
Income is one of
the significant
factors in
measuring and
analyzing the
economic
performance.
There is a close
relationship
between
economic
performance and
agriculture
growth. Higher
contribution is
provided by the
agriculture sector
in the economies
of scale and
expansion of the
economy.
It has been found
that Monsanto
should focus on
economic factors
to gain
competitive
advantages in the
global market. It
also needs to
analyze and
measure the
economic
performance to
maintain
sustainability in
the environment.
GRI 202 Market presence It has been found
that Monsanto is
not giving fully
contribution in
the market.
The presence of
the agriculture
industry is high
in the market.
It is noted that
company should
focus on the
market trends,
needs and
expectations of
the consumers.
GRI 203 Indirect The company The agriculture The company
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Sustainability business management
economic impact may affect the
economy of the
country
adversely
because good
and fresh seed
are not used by
the company.
Climate change
affects the
success and
sustainability of
the firm.
industry appoints
a research and
development
team to analyze
and evaluate the
economic
conditions of the
country.
should use
advanced
technology for
farming.
GRI 302 Energy It is noted that
Monsanto faces
ample of energy
issues. Soil
erosion and
degradation is
another issue that
affects the
economy of the
country.
Various
environmental
such as energy
issues are faced
by the agriculture
industry. It has
been found that
the agriculture
industry covers
various areas for
farming the
products. It
hampers the
natural resources
of the country.
Therefore, it
creates various
energy issues in
The company
should focus on
the natural
resources and
effective
utilization of
natural resources
shall be done by
the company. It
will help to
reduce energy
issues in the
global market.
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Sustainability business management
the country.
GRI 303 Water This GRI index
shows that how
the company
waste the water
for farming in
the country.
Water scarcity
issue is ongoing
that could affect
the image of the
company
adversely.
This index shows
that
unsustainable
farming practices
affect
environment of
the country
adversely.
Pollution is
major issue in
the environment
that may affect
the life of people.
The company
should focus on
the
environmental
issues to expand
and explore the
business
globally.
GRI 408 Child labor Child labor is
one of the
significant issues
in the company.
The child labor
practices are
undergone in the
company.
It is stated that
child labor issues
are also going on
in the agriculture
industry.
The company
should focus on
the child and it
should prevent
the child labor
practices for the
welfare of the
children.
GRI 419 Socio-economic
compliance
It has been noted
that
unsustainable
agriculture
practices are
used by the
company
therefore it
declines the
Habit loss, land
conversion and
degradation.
The company
should focus on
the social and
economic issues
to save the
agriculture
industry.
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