Preview

Bhopal Case Study

Better Essays
Open Document
Open Document
1270 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Bhopal Case Study
Academic Writing
Cesar Rubio
27/11/12
Research Paper

After the events that happened in the Bhopal tragedy the night of December 2nd 1984, it is more than clear that Union Carbide Corporation have the responsibility of this tragedy and took an unethical business position, First, By making the wrong decisions about the planning of the factory because they did not invest to have effective security methods as they had on the plants located in developed countries. Second, because at the time of the disaster they were not conscious about the consequences and the way to act in the case of a disaster. Third, because even more than 25 years after the tragedy the company have not take full responsibility about the disaster.
Union Carbide Corporation (UCC) is an American multinational company which after and attempt of the Indian government to increase the investment of international companies in the country, built a pesticide plant in Bhopal in 1969. The company took advantage of building a plant in a third world country were the safety regulations for making a production plant are tremendously lower. Although, the plant was newer than the ones in U.S or Europe, the technology for the plant procedures was archaic, to lower the company investment. ‘By the early 1980s the Bhopal facility was operating at one-quarter of its capacity, due to poor harvest and reduction on the capital available to farmers’ (Gibson, 2007, pp.1). An interesting fact is that in 1982 a UCC team declared the plant unsafe, however, no actions were made. The plant continued to work with limited production and by July 1984 there was attempt to sell it and there were plans to dismantle some components to shipped to another plant but nothing happened. By the time of the disaster, only six of the original twelve were still working with the toxic gas and the number of supervisory personnel was also halved. No maintenance was placed on the night shift and instrument readings were taken every two hours



References: Marcouse, I, And Lines, D. (2002)’ Case Study 71: The Bhopal Tragedy’. In Business Case Studies AS and A Level (3rd ed.). Harlow: Longman. Gibson, K (2007) Ethics and Business, An introduction: An overview of business ethics: The Bhopal disaster. Cambridge University press. (Pp. 1-6) Cohuan et al (1994) Bhopal: The Inside Story: Carbide workers speak out on the world’s worst industrial disaster. Indiana press. Al-Jazeera (2010) Inside Story, Bhopal: Too little, Too late? : http://www.youtube.com/watch?v=AT5S49WYAOc

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The catastrophe at Rana Plaza claimed so many lives of workers, which were not guilty wherein. A lot of different factors influenced such outcome. Summarizing results, we must say that producers, government and even consumers were guilty in some way in the accident, and each of them played their role there. Producers must bear responsibility because of their guilty in the lowest salaries of their workers, poor working conditions, and not following the fire safety rules; in addition, they subject their workers to a danger due to that they forced them to work knowing the building was not safe. Consumers of more developed countries must also bear responsibility as they do not will to pay more money for clothes and do not think that their actions…

    • 202 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    References: C., O., John Fraedrich, and Linda Ferrell. Business Ethics: Ethical Decision Making and Cases. South-Western Pub, 2010. Print…

    • 1087 Words
    • 5 Pages
    Good Essays
  • Good Essays

    The Chilean Cooper Mine cave in 2010 trapping 33 workers for 17 days 2,300 feet underground was a tragic accident that they could have been prevented if the company would have had a strategic business plan in place for this type of crisis ("Chile Mining Accident (2010)", 2011). A crisis management plan is crucial to have in a mining company, but every company large or small should have one.…

    • 692 Words
    • 3 Pages
    Good Essays
  • Good Essays

    References: BSR Staff. (n.d.) Overview of Business Ethics, Retrieved on March 13th 2003, from http:/…

    • 926 Words
    • 4 Pages
    Good Essays
  • Good Essays

    In each of these disaster’s there was a loss of life. However, one was more substantial than that of the other. In the first disaster Zeebrugge, the company would be prosecuted for corporate manslaughter. Although five people had told management there concerns, the board was never made aware of the issues.…

    • 646 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Shaw, W.H. (2014). Business ethics: A Textbook with cases, (8th ed.). Boston, MA : Cengage.…

    • 1446 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Ethics Essay Primark

    • 3392 Words
    • 10 Pages

    Despite the cost of life in one of the major disasters (the Rana Plaza collapse) of the fashion industry, Primark has made huge profits (44 % higher than in 2012) highlighting that cost rather than ethics is at the forefront of the stakeholders. The race to the bottom characteristics1 of Bangladesh have facilitated giant western companies, cheaper labour and goods. Furthermore the lack of enforcement of the limited…

    • 3392 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Union Carbide's decision-makers valued profits over human life. They were fully aware that India was not enforcing basic safety standards. Union Carbide did not take it upon themselves to set up procedures that may very well have reduced the catastrophic results of the methyl isocyanate gas leak. They are an American corporation and therefore should abide by American standards, no matter where they are located. The issue of safety did not rank high in India, whereas it would have been a primary issue in the United States. Perhaps no dollar value can be ascribed to American life but Indian life has a price-cap. Union Carbide also failed to enforce what few safety regulations they did have in place. Instead of following up on their request, they assumed that it had been done based on a report from the Indian…

    • 624 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Bhopal Ethical Issues

    • 1341 Words
    • 6 Pages

    It was declared by the Union Carbide Corporation in their statement regarding the Bhopal tragedy that: The Bhopal plant was owned and operated by Union Carbide India, Limited (UCIL), an Indian company in which Union Carbide Corporation held just over half the stock The other stockholders included Indian financial institutions and thousands of private investors in India. The plant was designed, built and managed by UCIL, using Indian consultants and workers (Union Carbide Corporation 's statement). By declaring this, the Union Carbide Corporation tried to change the direction of target of the society into UCIL which is technically owned by Union Carbide by owning over half of the stock. They also stated that the plant was designed, built and managed by the Indian firm (UCIL - which they declared that they "only" own over half the stock) using Indian consultants and workers. However Union Carbide said, stated or declared they are still held for the responsibility of the tragedy ethically, if not legally. Therefore, the main subjected organization involved in this is the Union Carbide Corporation as it has been known by the world.…

    • 1341 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Mount Everest Case Study

    • 867 Words
    • 4 Pages

    In my opinion this tragedy has several causes witch team leaders ignored and in a result the tragedy occurred. It is all about decision making and choice between different alternatives. Choosing criteria and potential results. In respect of this I will make summary of causes:…

    • 867 Words
    • 4 Pages
    Good Essays
  • Good Essays

    that of the Bhopal disaster which happened in India, known as the world’s worst industrial…

    • 1943 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    grooming

    • 304 Words
    • 1 Page

    1. Who is responsible for the Bhopal accident? How should blame be apportioned among parties involved, including Union Carbide Corporation, UCIL, plant workers, governments in India, or others?…

    • 304 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    What were the most significant flawed decisions made by BP and its partners in this case?.........................4…

    • 3612 Words
    • 15 Pages
    Better Essays
  • Powerful Essays

    Case Summary modern industry. Both believed that only a mixed economy, in which state-owned enterprises operated the major sectors of the economy and private enterprise guided by considerable government regulation to protect workers and the general public, would successfully meet the economic challenges facing the country. In India, steel making, railways, shipping, aviation, and electrical power generation were the most prominent industries dominated by state-owned firms; the nascent Indian chemical industry was a mix of state-owned and private firms. In its Resolution on Industrial Policy in 1948, the Indian government expressed a strong preference for Indian enterprise, but indicated willingness to allow some collaboration with foreign firms: … while it should be recognized that participation of foreign capital and enterprise, particularly as regards industrial technique and knowledge, will be of value to the rapid industrialization of the country, it is necessary that the conditions under which they may participate in Indian industry should be carefully regulated in the national interest. Suitable legislation will be introduced for this purpose. The follow-up legislation included limits on foreign shareholding in Indian firms, so that multinationals could not own 100% of their Indian subsidiaries but had to share ownership with Indian nationals. It also preferred collaboration only when the foreigners owned technology not available in India. The government hoped to determine the terms on which Indians could acquire technology by law, but its early preference for importing “at the lowest cost” and not paying license fees on imported technology for more than 5 years (typical patent protection lasts 20) had to be modified in the face of foreign companies’ unwillingness to make deals with Indian firms (state-owned or private) on those terms. Thus, the Indian government fell back on a system of requiring that subsidiaries of foreign firms be part-owned by Indian…

    • 3916 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    • India’s leading Producers of Industrial Chemicals and Fertilisers Set up in 1979 as an Ammonia Manufacturer…

    • 1444 Words
    • 6 Pages
    Good Essays