This case deals with the ethical implications involved in producing and selling a product with unknown health and environmental side effects. Monsanto claims that its products are safe, even beneficial for society. However, critics are not convinced. A major issue in this case pertains to the debate over whether genetically modified plants and substances (milk) are safe both for the environment and for human consumption. Other issues Monsanto faces have to do with intellectual property and patent protection, and the question of whether seeds can be proprietary goods. Traditionally, farmers save seeds from one year to plant in the next year, but Monsanto wants introduce a “kill gene” to force farmers to purchase new seeds from the company every year. The case also covers Monsanto’s long history of ethical misconduct, including instances of hiding illegal pollution and taking bribes. Finally the case goes on to cover Monsanto’s corporate responsibility initiatives, charitable giving, and how its genetically modified seeds may actually help farmers in less developed countries. The case concludes by asserting that Monsanto claims to have realized the errors of its ways and is on the path to greater corporate responsibility in the future. The question to students remains: Do they believe Monsanto, or is it just lip service to avoid further criticism?
1. If you were Monsanto’s CEO, how would you best balance the conflicting needs of the variety of stakeholder groups that Monsanto must successfully engage?
2. Companies, like Monsanto, that can offer technology to improve human lives are often said to have a moral obligation to society. How can Monsanto best fulfill this moral obligation while also protecting society and the environment from the potential negative consequences of its products?
3. Monsanto has developed a differentiated, patent-protected product that produces superior yields when compared to traditional seeds. How has this successful marketing strategy been impacted by the potential negative side effects and the potential negative environmental impact of genetically modified seeds?
4. What can Monsanto do to alleviate stakeholder concerns? How could these actions be woven into the marketing strategy for the company’s products?