The Bayer–Monsanto fusion: countering brand tarnishing and rebuilding reputation

Abstract

Purpose The purpose of this paper is to investigate the antecedents, internal/external drivers and circumstances that diminish the importance of reputation and permit it to be circumvented in the context of a fusion (Monsanto-Bayer) and propose a comprehensive stakeholder perception-molding (“sense-giving”) model to counter reputation-damaging factors. Design/methodology/approach The present study is a longitudinal case study of merging entities using an intra-organizational evolutionary perspective combined with external analysis. Findings Reputational hurdles can be successfully circumvented by a multifaceted strategy leveraging timely and tailored combinations of cognitive, conative and linguistic perception-molding strategies for effective management of diverse stakeholder perception processes spanning across identity orientation, legitimacy, posture, consistency, commitment, justification and transparency. Research limitations/implications The research is susceptible to the general limitations of case studies such as omission bias in terms of focusing on only two purposefully chosen market-leader firms involved in a merger, though every effort was made to track competitor movements, broad trends in markets and the micro- and macro-environments. Practical implications The proposed heptagonal reputation circumvention perception-molding framework (Figure 1) summarizes various actionable strategies to help managers develop a global vision and portfolio of strategies to proactively or reactively manage attacks on reputation. Originality/value An in-depth and multi-decade study of antecedents and internal/external drivers of the successful mega-fusion of two companies with a long history of reputational shocks was leveraged to provide unique insights into the interplay of various strategies targeting diverse stakeholder perceptions. These insights were then generalized to create a comprehensive perception-molding strategic framework to help firm managers circumvent reputational tarnishment hurdles.

Measuring sustainability risks: A rational myth?

“…Because of their high media coverage, sustainable development issues can significantly influence organizations' reputation and value (Bauer & Hann, 2010; Novethic Research, 2013; Weber et al, 2010; Wright & Rwabizambuga, 2006). For example, the lawsuits against Monsanto due to the environmental and health impacts of certain products—particularly glyphosate‐based products—have seriously affected Bayer's image, as Bayer acquired Monsanto in 2018 (Rebière & Mavoori, 2020; Siegel, 2018; The Holmes Report, 2019). The costs associated with legal proceedings against the company amount to several billion dollars and have caused Bayer to lose nearly 40% of its stock market value in less than a year (Véronique, 2019).…”

Legitimizing unsustainable practices: The institutional logics of pro‐pesticide organizations

“…In the United States, the global organic food market represented more than $110 billion in 2016 and is expected to exceed $375 billion by 2022 (https://www.mccourier.com/global-organic-food-market-is-expected-to-reach-us-375-98-billion-by-2026-3/, 2021; Meticulous Research, 2020; Straits Research, 2020). This growth, which can be observed in most developed countries, is accompanied by an increasing pressure against the pesticide industry, which is often accused of minimizing or even hiding the negative impacts of their products and of being responsible for many cases of serious and chronic diseases, in particular various types of cancers (Cuker et al, 2020; McHenry, 2018; Rebière & Mavoori, 2020). Paradoxically, despite these growing pressures, the global market for pesticides is growing worldwide, including in developed countries (Hedlund et al, 2020; Sharma et al, 2019).…”

Politicizing the Use of Glyphosate in Europe: Comparing Policy Issue Linkage across Advocacy Organizations and Countries

“…Monsanto as a company has a bad reputation (Rebière and Mavoori 2020), which has worsened since the court rulings against it (in the United States). GMOs, too, have become increasingly unpopular among Europeans, although there is some variation in public opinion between the citizens of the individual countries (see, for example, Legge and Durant 2010;Herring and Paarlberg 2016;Mühlböck and Tosun 2018;Tosun and Hartung 2018;Wesseler and Kalaitzandonakes 2019).…”