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BHOPAL GAS TRAGEDY

History of CASE
• Twenty years ago, Bhopal chocked over
methyl isocynate fumes from the Union
Carbide India Limited (UCIL) factory.
• According to Madhya Pradesh Gas Relief and
Rehabilitation Department, over 15,000 lost
their lives and 550,000 suffered serious
injuries.
• The Supreme Court awarded a compensation
package of $470 million in 1989, based on
estimates of 3,000 dead and 15,000 injured.
UNETHICAL ISSUES FOUND
• The judgement absolved UCIL and its parent
company in the US, Union Carbide
Corporation (UCC), of criminal liablity and
appointed the Indian Government as the sole
representative of the victims.
• Neither the centre nor the state Government
has acted sincerely in that capacity.
• The centre dragged its feet over carrying out a
comprehensive medical survey as a result of which
documentation of medical disorders, crucial to
establishing the corporate’s guilt, remains
inadequate.
• Former UCC chief Warren Anderson, charged for
culpable homicide, remains an absconder from
Bhopal courts for a decade, yet it is learnt that the
then state government did not try to hold him back
when he was here.
• Today, the $470 million has multiplied by way
of interest to about $700 million, but courts
have disbursed only $335 million.
• Over 5.5 lac individuals have on an average
received Rs.25,000; the latest order would
entitle each person to another Rs.25,000.
Unethical corporate governance
• In 2001, Dow Chemicals acquired UCC and
said it owed nothing to the Bhopal victims.
• Lackadaisical corporate accountability is found
because when compensation is measured
against the American victims of similar
accident then it is found that billion dollars
payout to American victims.
Meaning of business ethics

concerned with
Business ethics Moral issues in ethics
Business ethics
Character Deceided by Conduct Leads to
Series of
Taken together consideration as

of a man of a action
person

by which

We judge again

Good or bad
Moral Known as a moral judgement
Right or wrong
standers requires
Moral or immoral

‘’Meaning of True and Real Ethics’’


Meaning of corporation
Are primarly
corporations Business Run for benefit of

organisations shareholders

employers

customers

suppliers
Comm-
unities Society
at
large
Corporate governance
To provide “the maximum happiness for the
maximum number of people for the maximum
period, based on the principles of Dharma –
righteousness and moral values.”
Corporate governance
• “Corporate Governance is the application
of best management practices, Compliance
of law in true letter and spirit and
adherence to ethical standards for effective
management and distribution of wealth and
discharge of social responsibility for
sustainable development of all
stakeholders”.

- The Institute of Company Secretaries of India


STRENGTHS WEAKNESS
1. The SC’s decision to finally
disburse the Rs. 1,500cr 1. Lackadaisical corporate
compensation from Union responsibility.
Carbide to victims or kin of 2. Unreal estimation of figure of
the 1984 Bhopal Gas Tragedy injured and dead people.
is a significant milestone. 3. Neither the central nor the
2. The BJP government of MP state government had acted
wishes to use part of the sincerely.
amount for the city of Bhopal.

OPPORTUNITIES THREATS
1. Ethical business practices will be
followed in organizations 1. The SC must ensure that the
especially with respect to the corporation money goes to
chemical organizations. the victims and not into the
2. Strict rules and regulations should grubby palms of local
be followed for the best corporate corporate.
accountability and responsibility. 2. Like Warren Anderson any
3. Practicing of Corporate
other entrepreneur or
Governance.
4. A good compensation will be director of any organization
paid. can do in such cases and can
escape safely.
findingS
• In this case, the administration has appeared
lackadaisical from the start.
• Bhopal was the single largest industrial accident in
the world that ultimately affected over 5 lac people,
and the government only got $470 million as
compensation.
• Amount of Rs. 50,000 per person a
compensation/pittance for an individual
economically and physically destroyed over 2
generations is least miserable.
SUGGESTIONS
• The government must actively push cases against both WARREN ANDERSON
and DOW CHEMICALS.
• Present owner of Union Carbide, and at least get the firm to thoroughly
cleanup the abandoned Bhopal Complex that is still leaking toxins into the
environment.
• The immense amount of compensation will be should be paid to the Bhopal
survivors.
• Strict rules & regulations must be implemented by government so that no
such accident takes place in the future.
• After Globalization, in the interest of World trade and businesses, episodes
like Bhopal Gas Tragedy should be referred to an international code setup
under the aegis of the WTO.
• Any business organizations should take care of business ethics and corporate
governance.

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