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).
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 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).
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 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).
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).
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. |
|
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. |
|
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 solutions to other farm households. |
It has been analyzed that Monsanto needs to use farming system approach to fulfill the needs and requirements of the farmers. |
|
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 economic impact |
The company 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. |
The agriculture industry appoints a research and development team to analyze and evaluate the economic conditions of the country. |
The company 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 country. |
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. |
|
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 variety of crops and production. The government policies affect the revenue of the company. It also affects the habits of the customers adversely. |
Habit loss, land conversion and degradation. |
The company should focus on the social and economic issues to save the agriculture industry. |
MONSANTO Company addresses the concept of Triple Bottom Line by focusing on the three major concepts of business which includes; Social, Economical and Environment. It takes care about the issues relating to society like harmony among people, economy such as the profits and losses of the company and environmental issues like wastage created by the company to the environment due to dumping of industry garbage. In order to avoid such issues created by Triple Bottom Line the company must follow the recommendations so that it can become easy for them to carry out relevant solutions. In order to maintain the growth of the business, MONSANTO must keep a record of the amount of profit generated every year. This will create lesser chances of economic issues. To avoid social issues company must interact with society and take their feedback in order to promote more and more products in the market. The issue related to environment can be solved by growing plants and trees and dumping the waste in the dump yard.
The theories that every company generally uses includes Normative Ethical, Teleological and Deontological theories. These theories are strategic theories that a company use to earn more profits and achieve its target. Normative theories are those ethical theories that generally arise due to morals and values (Thompson, 2017). It is the most traditional theory used in the company. Teleological theory arises in an organization due to its actions performed in business. It takes care about the morally right step that a company must take. The ethical theory that is used by MONSANTO Company is Deontological theory which is a strategy performed by the company to observe the right and wrong practices of the company on their own. Deontology helps MONSANTO in knowing the effects that are possible to be seen on GMO crops. They let the company know about its harmful effects on the crops if any. Although the research of deontology is limited it still gives company a chance to know what is right for the crops. This strategy advances the company and becomes an advantage over other companies. The theories become an effective approach for MONSANTO but the prior theory used by the company relies on deontological aspects of business.
MONSANTO is considered as “world’s most evil corporation”. Everyone today hates MONSANTO due to its many wrong practices. MONSANTO use children to carry out its business. It is involved in child labor practices. The publicity of the company is so bad that it had to pay the internet to avoid those trolls raised on the company. As the company saw its downfall, it started having ethical and unethical issues which resulted in great losses. The kinds of products it supply bring bad reputation to the company. Monsanto is unable to meet the expectations of the company. It has also disappointed the farmers who are the main elements of this business. Unethical aspects also affect the image and goodwill of the company adversely. It could also influence success and growth of the company. The rules, regulations and norms are not being followed by the employees due to lack of ethical practices. On the other hand, child labor practices also have direct impact on the health of the children. It also creates tensions, anxiety and frustration among the children. Along with this, code of conducts is not followed by the employees while initiating the activities and operations globally (Strandvik, Rindell and Wilén, 2013).
Conclusion
On the above mentioned analysis, it has been concluded that MONSANTO is making effective and unique strategies to maintain sustainability in the workplace. Furthermore, the paper also explains the social and environmental issues that put direct impact on the sustainability of the company. Ethical issues and bad publicity also have been explained in the task. Along with this, here is the brief discussion about the stakeholders of the company
References
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