Monsanto

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Part 3 ---The Stakeholder-Analysis
All stakeholders are in an exchange relationship with an organization. Each stakeholder group supplies the organization with important resources, and in exchange each expects its interests to be satisfied. The most important stakeholder groups are stockholders and customers. One can argue that, stockholder’s drove the company to expand to different parts of the world for more profits. The company also thought that the resulting profits would benefit shareholders through appreciation in the company’s stock price, as well as employees, who would have more secure employment. However, Monsanto failed to anticipate the adverse reaction from another important stakeholder group: the general public. Monsanto’s introduction of genetically modified crops has met stiff resistance from the general public in both Europe and Latin America. Furthermore, because the company may be trying too hard to please share holder, pressure is mounted on the managers. It is never a good thing when managers make the mistake of putting the claims of shareholders in front of all other claims. It is true that a business corporation should try to maximize the return associated with holding its stock but at the end of the day, managers might end up obsessing on short term goals and plunge the company’s long term future. Furthermore, the managers might take actions that not only run counter to the interests of other important stakeholder groups, but also are not in the best long-term interests of shareholders themselves. Environmental and Societal variation in the rest of world explains why the general view of biotechnology is much more pessimistic than in the United States. Cultural differences drive overall customers’ attitude towards Monsanto. As a result, they simply can either accept and buy the provider’s products or refuse them. Certain parts of the world may tend towards a certain technological skepticism in favor of more ecological and sustainable...
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