Ethics

Monsanto has been designated as worlds number one unethical company in the world. Profits are made by selling out seeds to farmers but losses make their ways owing to unethical standings. This paper shall include reports that show that Monsanto allegedly has made false claims in relation to characteristics of many of GM products that are scientifically proven to be wrong thus making it an unethical company. Monsanto has faced financial losses because of false claims.

Introduction
For any country, food security is its main concern. US based agricultural giant, Monsanto is the worlds greatest genetically modified seed seller. Two segments are operated by Monsanto and these include genetics and seeds and agricultural products. Genetically modified (GM) seeds are being sold at higher patent rates to small-scale farmers in order to spread GM crops ensuring insect resistance and disease resistance in crops. However, Monsanto based GM crops are not allowed in many European countries arguing based on evidence that false claims have been given by Monsanto in regards to characteristics of GM seeds. These GM crops have proven to be an environmental hazard. Thus, GM seeds claimed to be environmentally safe are proven environmentally hazardous thus these GM products are more of a hazard to food security concerns of countries.

Biotech industry has criticized Monsanto as most unethical company in the world. Complaints observed against Monsanto clearly highlight unethical operations being observed by Monsanto. Many reports published reveal role of seed business company highlighting the fact that competitors are being squeezed and smaller seed companies are being controlled thereby Monsanto is making sure that dominance is maintained in case of genetically altered crops.

Monsanto has patented many genes in 95 of GM soybean in the world and in 80 of corn grown in US. Monsanto is also trying to control other biotech firms in order to ensure that GM products are distributed by these companies all over the world. U.S. Department of Justice is investigating Monsanto business strategies and fact being investigated is if Monsanto is violating antitrust laws.
One of the major issues that have gained importance is how much power a company can have over seeds whose end consumers are farmers who need better crops. Unnecessary domination of other seed companies is seen to be unethical. Seeds are a food source.

Roundup is a weed killer introduced by Monsanto claiming that this herbicide is biodegradable and it does not have a negative effect on the soil. These properties made this herbicide a bestseller herbicide. These rulings have been given by highest courts in France. French environmentalists saying that glyohsophate brought in case against this herbicide. This main ingredient has been investigated and scientifically proven harmful for the environment. Thereby Monsanto is following unethical corporate rules. Because of lesser sales of roundup, reported losses faced by Monsanto equal to US 10 million in first quarter of 2010. In 2009, a profit of US 556 million was recorded at 1 per share. In addition, gross margin of Monsanto this year faced a downfall from 59 to 44 because of lesser market and sales of Roundup.

Agrochemical giant based in US, Monsanto has also faced earlier convictions ruled by French courts in 2007. Company now plans to target milk production. Monsanto has been known to play corporation based tactics against poor farmers.

According to a report published by BBC, genetically modified maize has been banned in Germany. GM maize has been widely grown in Europe. According to Monsanto, GM variety of maize is resistant to moth larva feeding on stems. Now, this variety is controversial in Europe. Evidence presented by Bavaria-based Christian Social Union (CSU) proves that this variety is a danger to environment. Based on these non-political evidences, this variety has also been banned in France, Italy and Greece. Italian police raided Monsanto warehouses in Italy where GM maize was being stored and seized 112 tons of GM maize, cultivation of which is illegal in Italy. Italian police have also seized 300 tons of GM soybean seeds in Italy.

Recently BBC has published a report that Brazil based activists have sued Monsanto for illegally using 307-hectare farm in Santa Helena de Goias. Report mentions that 200 to 2000 people are working on these farms. As an answer to this lawsuit, Monsanto says that this farms is being used for seed research and training. Brazilian activists say that invasion itself is illegal and without permission. Even if Monsanto is producing seeds, these seeds are being sold from these farms on strict patenting rules and plants reproduced from these seeds are under research. These big growers thereby causing damage to traditional farming are knocking out small farmers. Moreover, Brazilian activists have argued that an invasion of GM crops shall have a negative effect on market of non-GM crops. A fear resides within Brazilian farmers of GM leakage.

Another main issue being faced by Monsanto is an outcry from farmers. Seeds genetically produced by Monsanto are being sold at higher patent prices, unaffordable by small-scale farmers. To this, a Canadian farmer had taken a stand and argued that these patented seeds are unable to be planted and cultivated on small-scale fields. Contamination and mixing of GM and non-GM crops is another issue as BBC report has highlighted. European Union is specially concerned about the amount of GM crops that has contaminated their non GM fields thereby Monsanto is consistently growing and producing GM seeds and crops in European countries as reports highlight.

These bad spells for Monsanto can cause a decrease in seed business competitions having a negative impact on farmers. Seeds prices can rise that can negatively affect farming practices of small-scale farmers. These rising seed prices can cause inflation in case of all agricultural products being sold out by other agricultural companies.

Because of these changes in productivity and standing, financial estimates have been made and these clearly indicate that as compared to previous years, Monsanto will face a loss comparatively. In relation to sales estimates, fiscal year of Monsanto ends in august 2010 and it has been estimated that earnings from sales will be as high as US 12,132.00, which is lesser as compared to US 14,458.90 earned in august 2009. On the other hand, if earnings over share are taken into account, it has been reported that up till august 2010 will be as high as 3.40 and this is lower as compared to 5.42 earned in august 2009.

Conclusion
Thereby business monopoly is being played with small-scale farmers. Countries that do not allow GM crops in their fields have given evidences that GM seeds and products as herbicides produced by Monsanto are not environment friendly and these can cause damage to the environment.