Monsanto Attempts to Balance Stakeholder Interests Essay

1085 Words Nov 18th, 2012 5 Pages
Summary: Monsanto Company is the world’s largest seed company. They specialize in genetic manipulation of organisms. Monsanto was founded by John E Queeny in 1901 in St. Louis, Missouri. The company’s first product was artificial sweetener. At the start of World War 1, company leader realized the growth opportunities of industrial chemicals. In 1970’s, Monsanto had produced a chemical known as Agent Orange. Agent Orange contained dioxin; a chemical that caused a legal nightmare for Monsanto, a lawsuit was filed against Monsanto on behalf of hundreds of veterans. The repercussions of dioxin would plague the company for years. In 1981 Monsanto leaders determined that biotechnology would be the company’s new …show more content…
It was later found that this was not an isolated event; the company had paid off many officials between 1997 and 2002. As a result, Monsanto accepted full responsibility for their employee’s behavior and agreed to pay $1 million to the Department of Justice and $500,000 to the SEC, along with 3 years of close monitoring.
Patent Issues: Farmers using Monsanto seeds are not allowed to harvest seeds from the plants for use in upcoming seasons. However this is a new concept for most farmers, the law protects Monsanto’s right to have exclusive control over its creations, and farmers must abide by these laws. Since it is easy for farmers to violate the patent, Monsanto has found it necessary to employ investigators to investigate violators. Some farmers claim Monsanto investigators have used unethical practices to get them to cooperate.
Legal Issues: It is suggested that Monsanto is hindering competition, exerting too much power over transgenic seed industry, and limiting seed innovation.
Conclusion:
Monsanto is has taken a good hard look at their actions in the past and what had transpired, and in response decided to fashion what they believe to be the best-practices FCPA compliance program. Genetically-modified foods have the potential to solve many of the world’s hunger and malnutrition

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