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 of a man

Conduct of a

person

Series of action

Deceided by Leads to Taken together consideration as

Good or badRight or wrong

Moral or immoral

Moral standers

Known as a moral judgement

requires

by which

We judge again

‘’Meaning of True and Real Ethics’’

Meaning of corporation

corporations Business organisations

Are primarly

shareholdersRun for benefit of

employers

customers

suppliers

Comm-unities Society

large

at

Corporate governanceTo 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

OPPORTUNITIES THREATS

1. The SC’s decision to finally disburse the Rs. 1,500cr compensation from Union Carbide to victims or kin of the 1984 Bhopal Gas Tragedy is a significant milestone.

2. The BJP government of MP wishes to use part of the amount for the city of Bhopal.

1. Lackadaisical corporate responsibility.

2. Unreal estimation of figure of injured and dead people.

3. Neither the central nor the state government had acted sincerely.

1. Ethical business practices will be followed in organizations especially with respect to the chemical organizations.

2. Strict rules and regulations should be followed for the best corporate accountability and responsibility.

3. Practicing of Corporate Governance.

4. A good compensation will be paid.

1. The SC must ensure that the corporation money goes to the victims and not into the grubby palms of local corporate.

2. Like Warren Anderson any other entrepreneur or director of any organization 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.