Monsanto Controversy

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The controversy of Monsanto has not ceased for years. The company has become an emblem of the immorality and even is described as an evil corporation, owing to its insistence to applying biotech in America’s agriculture. Such practice has severely contaminated the food supply and environment. This has brought to the public concern the problem of unethical business decisions and the corresponding devastating consequences that could be resulted. To an entrepreneur, profit maximization often comes primitively, however, the directors should consider more precisely on the possible outcome of the decisions they make. Morality should never be separated from any decision making in operations. Whether a firm makes any decision that aims at making profits,…show more content…
With the rapid growth of worldwide economic activities, more firms are able to expand their business scale and establish new branches in other parts of the world. Choosing the locations of their newly formed businesses can be a considerable problem encountered by the multinational corporations. Look back to the issue of Monsanto. The company acquired permissions from the US government to build its factories and pollute the area without informing the residents nearby. Its negative impacts on cost of living and people’s health conditions have raised the popular indignation and led to “Occupy Monsanto”, a global boycott on its products. Moreover, earning a huge profit, USD$2525million according to Monsanto Company 2013 Annual Report, by immoral manners may set a bad example for the other firms in the market. The practice would latently entice more conglomerates to imitate and further degeneration of the current living standard. A worsened relation between the corporation and its customers does not simply damage the reputation and lower the profitability, future business strategies can also be affected. (In the case of Monsanto, its growth has been reduced by 6%). Similar immoral operations in the future may be easily objected by citizens or shareholders due to disaffection of the public. It would be more difficult for the firm to accomplish its…show more content…
In the millennium, where the economy grows expeditiously, surviving under the fierce competition has been difficult for corporations. Reputation could be one of the determining factors to the duration of firms. Take TOMS’s “One for One” campaign as an example. The company donates a pair of shoes to children in need for every pair of shoes purchased. (source) The campaign has developed goodwill and labeled the corporation as a moral business. The “One for One” could be seen as a marketing tactic and probably bring Blake Mycoskie, the founder of TOMS, more profit. The pioneer, who has already gained reputation with the largest market share, latently attracts more firms to imitate and becomes the standard of the industry. The “One for One” cause now has expanded its scale, the impoverished children do not only receive a pair of shoes, but being provided a chance to undergo optical surgery for those in need. The fact that it has ameliorated the health conditions of the underprivileged catches more people’s attention and raises its renown. Therefore, in order to sustain in this highly competitive society, enterprises should take a step further from the current interest and execute their social responsibility, instead of concentrating on numbers in their income statements. By considering impacts on the cost of living and public’s health and latent consequences inside the market, decision makers might easily

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