degree stakeholders should be held responsible for the accident. According to Article 14 of UN Norms‚ transnational corporations and other business enterprises are responsible for the environmental and human health impact of their activities. The commentary of the article states in detail the concrete measures to be taken in this regard. Article 18 asks on transnational corporations and other business enterprises to make reparations for damages done through their failure to meet the standards spelled
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Case Study of Union Carbide Corporation and Bhopal The Central Issue: This case makes us think how to prevent the mismanagements of subsidiaries in abroad. And it also brings attention to specific issues including government relationships with multinational corporations and environmental abuse. Recommended course of Action: Safety issues were virtually ignored at the Bhopal plant. To prevent tragedy like this‚ Union Carbide needs to take significant precautions in Bhopal. Union Carbide should check
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Both Union Carbide and the Indian government had the ethical obligation of non-maleficence; their obligation was to avoid harm to employees of the plant as well as citizens living in Bhopal. Additionally‚ Union Carbide and the Indian government had the ethical obligation to ensure that safety precautions were taken in daily operations of the plant as well as making corrections to known safety deficiencies. The Indian employees had the ethical obligation of fixing the problems that were pointed out
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fateful night of December 2‚ MIC gas began escaping from Tank 610 around 10:30 p.m . Gas was released when water interpolated into one of the storage tanks late that night . The water could not have got into the tank on its own . Union Carbide Corporation investigators have found new evidence pointing towards a theory that the tank was purposely sabotaged by a employee . Witnesses in the plant that night claim that an employee working that night was inraged due to a recent change making him
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Bhopal Union Carbide Ethical Dilemma Many ethical issues are raised by the situation that occurred in 1984 at the Union Carbide Corporation plant in Bhopal‚ India. The most important is the moral and ethical duty to preserve and protect human life. Union Carbide’s management‚ both in the United States and India failed to sufficiently protect its employees‚ the surrounding communities and environment from harm while operating its plant. It appears that the safety procedures at the plant were
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for the process industry. It all started when Union Carbide Corporation was asked to build a
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Introduction Corporate governance is the set of processes‚ customs‚ policies‚ laws‚ and institutions affecting the way a corporation is directed‚ administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders‚ management‚ and the board of directors. Other stakeholders include labor(employees)‚ customers‚ creditors (e.g.‚ banks‚ bond holders)
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Interests in corporate governance‚ specifically in business accountability‚ emerged in 2001-2002 in response to the financial collapses that large companies faced such as Enron in the United States‚ Parmalat in Italy‚ Ahold in Netherlands etc... . Governments and agencies‚ tried to prevent these scandals by issuing laws and regulations such as the Sarbanes–Oxley Act of 2002‚ United States federal law‚ however‚ shortly the interests in good corporate governance was renewed and emphasized after the
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What is Corporate Governance? Corporate Governance is a generic concept‚ and in most cases it is defined by its objectives. Corporate Governance can be defined and analyzed by two terms. The first was introduced by the Organization of economic Corporation and Development (OECD 1999). OECD defined “Corporate Governance as a system in which business corporations are directed and controlled. The Corporate Governance structure specifies the distribution of rights and responsibilities among the
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Corporate Governance Corporate Governance is the relationship between the shareholders‚ directors‚ and management of a company‚ as defined by the corporate character‚ bylaws‚ formal policies and rule laws. The corporate governance system was designed to help oversee the decisions and best interest of the shareholders. The system should works accordingly: The shareholders elect directors‚ who in turn hire management to make the daily executive decisions on the owner ’s behalf. The company ’s
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