MAN202 Business Ethics: Monsanto Case Study Analysis

Answer:

Introduction

Mosanto is one of the major organizations selling their genetically modified seeds across the world, but still facing various legal, social and environmental issues. This is due to the reason that the genetically modified seeds marketed by them are facing several criticisms. The major portions of the criticisms for the genetically modified seeds are coming from the different nonprofit organizations, farmers, end customers and governments. In addition, the competitors of Mosanto are also being included as the key stakeholder in the case of Mosanto. This is due to the reason that, there are various cases or instances being given in the case study about the lawsuits being issued by their competitors against Mosanto. This report will discuss about the ethical issues being faced by Mosanto in relation to the selling and marketing of genetically modified seeds. Moreover, the implications of the ethical issues being faced by them in the long run will also be discussed in this report. In addition, various steps will be discussed and evaluated in order to mitigate the identified issues.

Involved stakeholders: Nonprofit organizations

There are various stakeholders being involved in the case of Mosanto. One of the prime stakeholders is the nonprofit organizations. They are being included as the stakeholders due to the reason that, in the case study it is being given that, nonprofit organizations such as Greenpeace have being indulged in the legal tussle with Mosanto regarding the implications of their genetically modified seeds on the farmers from the developing countries. Their key concerns are the potential impact of the agriculture of genetically modified seeds for the natural bio diversity. According to them it will damage the local bio diversity and thus, in the long run, the farmers will be adversely affected.

Farmers

In the case study, it is being stated that, farmers from various countries are being complaining regarding the genetically modified seeds of Mosanto along with their business policies. They are one of the key stakeholders due to the reason that, farmers will be one who will use the genetically modified seeds of Mosanto to grow their crops. In the case study, it is being given that; several farmers have given the opinion regarding the contamination of their natural crops from the genetically modified seeds. Moreover, they are also concerned about the fact that, genetically modified seeds will cause death to the insects helps in pollinating. Thus, the natural life cycle of pollination will not get happen. In addition, in the case study, it is also being given that, the business policies of Mosanto are also causing issues for the farmers.

This is due to the reason that, according to the patent policy of Mosanto, farmers cultivating the genetically modified seeds of them will have the access to use it for one season. In the next season they have to buy the seeds again. Thus, it will secure the revenue generation for Mosanto but will act as financial burden for the farmers. Thus, it is causing issues for the farmers.

Customers

Customers are also being involved as the stakeholders due to the reason that, any types of positive and negative implications of the genetically modified seeds will be directly on them. In the case study, it is being given that; customers in the European regions have gone far by destroying the cultivation land of the genetically modified crops. Moreover, according to the study of the United Nations, consumption of the food products of genetically modified crops may have adverse impact on the consumer health. Thus, customers have not entirely accepted the concept of the genetically modified seeds.

Governments

Due to the fact that, customers and farmers are having direct implications from the genetically modified seeds, thus, government in different countries is directly being involved in the case. As stated in the case study, European Union has banned the use of majority of the genetically modified seeds of Mosanto except the variety of corn. China was skeptical about the genetically modified seeds to be allowed but in the later stage they have granted the permission. However, there are still various developing and developed countries, where the genetically modified seeds of Mosanto are not being accepted and granted permission.

Legal implications of the ethical issues 

As stated in the case study, Mosanto already faced various legal issues from various stakeholders including the government, competitors and nonprofit organizations. However, the ethical issues being faced by them may cause more legal implications. One of the key ethical issues being faced by them is their patent policy. As discussed earlier, the patent policy of Mosanto enables them to charge yearly fees from the farmers, if the farmers want to continue the cultivation of the genetically modified crops in the next year also. However, though, all the associated stakeholders have to bind by their patent policy if they want to use their genetically modified seeds, but still it may indulge them in legal issues. This is due to the reason that, in identifying the offenders in this case, various negative implications can also happen. According to the reports, various farmers have complained about the behavior and attitude of the investigators being appointed by Mosanto. According to the farmers, these investigators are often indulging in unethical behavior in order to force the farmers to pay fine or penalty. Thus, this involvement of unethical principles will attract legal suits from the farmers.

Another legal implication of the patent policy of Mosanto is the welfare of the farmers. This is due to the reason that, farmers those who have already started the production of the genetically modified seeds, they may face lose due to any unwarranted incidents, thus it will be difficult for them to buy again for the next years. In this case, the difficulty and financial burden being faced by the farmers will attract the legal issues for Mosanto.

By the government

The ethical issues being faced by Mosanto may also attract lawsuits from the government also. This is due to the reason that, looking after the welfare of the customers and the farmers is one of the key responsibilities of the government. Thus, due to the fact that the quality of the genetically modified seeds of Mosanto will determine the quality of the food products, involvement of the unethical business practices will have adverse impacts. Thus, if the implications of their genetically modified seeds for the consumers and the farmers are negative, then the government may take legal issues against Mosanto.

Perception by the community 

The ethical issues being faced by Mosanto will also have negative implications on the community due to the reason that, the product of Mosanto is having direct impact on the welfare of the communities. Moreover, the patent policy of Mosanto, which enable them to charge fees from the farmers on yearly basis, will be negatively perceived by the community. This is due to the reason that, as stated in the case, it is expected and normal that, farmers will continue their farming activities on the next year with the seeds that they will grow in the current year. However, in the case of the patent policy of Mosanto, they have to pay for the seeds every year. Thus, this will create negative impression on the community. Moreover, destruction of the natural biodiversity due to the reason of genetically modified crops will also have negative impression on the community. The community will be directly impacted along with having the chance of acute food shortage for the developing and under developed countries.

Recommended steps to overcome the issues 

One of the key steps will be the initiation of the public relation. However, the concept of the public relation should be holistic and cover all the associated stakeholders. Initiation of the public relation will help Mosanto to reduce the concerns of all the related stakeholders by effectively communicating with them. It is being discussed in the case that, several customers and regulatory bodies are concerned about the potential implications of the genetically modified seeds and thus it is important for Mosanto to offer the real time situation to the concerned stakeholders in order to make them aware about the potential implications. Another strategy will be the providence of the training to the investigators. This is due to the reason that, various farmers have complained about the behavior and attitude of the investigators, which further creating negative impression. Thus, proving effective training to them will help to change the behavior of them.

Pros and cons of the recommended steps

One of the key merits of public relation will be the reduction in the concern of the stakeholders when they can experience by their own. Moreover, it will also help to create positive word of mouth among the customers. The prime demerit of public relation will be losing competitive advantages. This is due to the reason that, initiation of the public relation will make Mosanto to share their production process and techniques to the stakeholders, which will lower their competitiveness among the competition. Another strategy being discussed is the providence of training to the investigators. This will change the behavior of the investigators towards the farmer, which will in turn enhance the positive impression of them. One of the key demerits is the uncertainty of the training program. This is due to the reason that, it will have no guarantee that the investigators will behave positively after receiving the training.

Implication of the ethical issues on human resources 

Ethical issues faced by Mosanto will have negative impact on the internal stakeholders of the organization. This is due to the reason that, ethical issues in the organization will lower the morale of the employees. They cannot be leaded by examples. Moreover, the employees will also be motivated to indulge in unethical principles, if senior management has also indulged in same. Accordingly, the conduct of the employees will be also be negatively impacted due to the presence of the unethical business practices. If the reputation of Mosanto is being lowered in the market, then it will reduce the interest of the employees for the organization, which is having negative reputation in the market.

Implication of the ethical issues on organizational culture 

With having the employees with low morale and low level of motivation, the organizational culture will also be negatively affected. The senior management will not have the control over their subordinates due to the reason involvement of the unethical practices have de-motivated the employees. The organizational culture will be perceived as unhygienic and unethical.

Recommended steps to overcome the issues 

One of the recommended steps will be the effective leadership. It is the responsibility of the leaders to effectively and positively motivate the employees in their workplace. Moreover, leaders should also not get indulged in any types of unethical practices, which will further motivate the employees. Thus, the leadership skills should be effective in order to enhance the organizational culture. Another step will be the providence of training. Providing training to the employees will help them to enhance their effectiveness along with their skills and expertise. In addition, having proper code of conduct will help the organization to control and monitor the activities of the employees. Thus, employee activities can be regulated according to the standard regulations.

Pros and cons 

The prime merit of effective leadership is enhancement of the relationship among the internal stakeholders. However, on the other hand, the demerit of effective leadership is the dependency on the situation. Thus, with the change in the business scenario, the requirement of the leadership will also get changed, which will be difficult to maintain. Advantage of providing training to the employees includes increase in the skill and expertise of the employees in their workplace. On the other hand, the disadvantages include the cost and resource being involved in the training process. Moreover, due to the diversity in the workforce, effectiveness of the training may not be the same for all the employees.

Three ethical and moral belief systems

The entire business process of Mosanto is highly dependent on the performance of farmers. Therefore, the three ethical and moral belief system that the organizational experts can implement include making an effective interaction with the farmers for knowing their problems, improving the professionalism among the investigators and using participative form of leadership style at the workplace in order to make collective decision for business expansion of Masanto.

Justification of the chosen ethical beliefs 

Among the three selected ethical and moral belief identified with the organizational structure of Mosanto the business experts should select the middle one. Enhancing the professional skill and competency of investigator for maintaining effective communication with the farmers is one of the most significant moral systems that Mosanto should immediately implement within the workplace. Farmers are not from good academic or cultural backgrounds. On the other hand, it is also undeniable that farmers play a major role in increasing the business process. Therefore, the investigators should maintain proper rapport with the farmers so that they intend to perform well towards the services.  

How to implement the moral and ethical belief system

Among the identified recommendations selected on the previous part, the importance of implementing proper leadership style at the workplace of Mosanto cannot be denied. In order to run the entire business process of Mosanto effectively the business leaders should follow democratic form of leadership style at the workplace. Democratic form of leadership style allows the business managers to involve the employees in taking collective decision. As a result, both the managers and the employees should equally participate within the business process. The managers do not intend to impose their own decision on the employees. Consequently, the managers and the employees can make good rapport while providing services.    

Implementation of ethical belief system

Among numerous identified issues and ethical actions, the implementation of training and development session for enhancing the professional skill and competency level of the employees would be most effective and significant for Mosanto. Investigators associated with this organization face challenges in making an effective interaction with the farmers due to linguistic barrier, psychological barrier as well as cultural barriers. However, a professional training and development session would be beneficial for the organization and the investigators to interact with farmers from various cultural and religious backgrounds.

The way of improvement of those ethical belief and system 

In order to render an improvement in the ethical actions the implementation of transformational leadership style instead of participative form of leadership style is highly significant. Numerous eminent scholars believe that transformational leadership style is flexible in following the form of leadership as per changing business scenario. Participative form of leadership style is not always suitable for controlling business process. The business managers sometimes have to take immediate decision to overcome sudden crisis. Therefore, at that specific time managers have to follow autocratic form of leadership style at the workplace. Mosanto can implement transformational leadership instead of following mere democratic leadership style at the workplace.