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Transcript of Ucci
![Page 1: Ucci](https://reader035.fdocuments.net/reader035/viewer/2022062423/55cf9179550346f57b8db560/html5/thumbnails/1.jpg)
Jackson Chao
Andy Xu
Alan Wang
Binardy Tjuatja
Emily Lin
Lee Groff
UNION CARBIDE BHOPAL
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• Stakeholders
• Change
• Ethical Issue
• Alternatives
• Recommendation
• Stakeholders
• Change
• Ethical Issue
• Alternatives
• Recommendation
UNION CARBIDE BHOPAL
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Stakeholders Change Ethical Issue Alternatives Recommendation
The stakeholders:
• Union Carbide
• The victims of the gas attack (employees)
• The local government
• The members of community
• The CEO of the Union Carbide
• The Greenpeace Group
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Before the Disaster :
• The Union Carbide: cut off costs, increase profits
• The victims of the gas attack: safe working conditions, equal pay
• The local government: ensure the safety of employees, prevent environmental damage
• The members of community: ensure the environment is clean
• The CEO of Union Carbide: to increase profits as much as possible
• The Greenpeace Group: to ensure the plant is not polluting the environment
Stakeholders Change Ethical Issue Alternatives Recommendation
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After the Disaster :
• Union Carbide: to pay as little compensation as possible and escape all responsibility
• The victims of the gas attack: require fair compensation
• The local government: to ensure the victims get fair compensation and assign responsibilities for cleaning up the pollution caused by the plant
• The members of the community: help clean up the pollution
• The CEO of Union Carbide: escaping responsibility
• The Greenpeace Group: to make sure UCC cleans up the pollution
Stakeholders Change Ethical Issue Alternatives Recommendation
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Economic Change• The recession of 1970-71 hammered commodities
companies like Union Carbide, with the chemicals and plastics markets entering another cycle of overcapacity.
Stakeholders Change Ethical Issue Alternatives Recommendation
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Economic Change• From 1967 to 1973, production costs were cut by one-third to avoid the inefficiencies and
plummeting prices that had accompanied industry-wide overcapacity.
Economic Change
Stakeholders Change Ethical Issue Alternatives Recommendation
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Economic Change
• Steadily rising expenses in Europe resulted in a $32 million loss in 1978.
• That same year, UCC was forced by its creditors to retire $292 million in long-term debt, which forced it to borrow $300 million in 1979.
5 Years later -- 1978 The company found itself increasingly strapped for cash.
Economic Change
Stakeholders Change Ethical Issue Alternatives Recommendation
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Economic Change
• was proved to be a losing venture and ceased active production in the early 1980s
The Union Carbide factory in Bhopal
Economic Change
Stakeholders Change Ethical Issue Alternatives Recommendation
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Economic Change
• However, vast quantities of dangerous chemicals remained
• Three tanks continued to hold over 60 tons of methyl isocyanate(MIC)
• Cut-backs
The Union Carbide factory in Bhopal
Economic Change
Stakeholders Change Ethical Issue Alternatives Recommendation
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• 1950: population 70,000
• 1956: Becomes State Capital
• 1984: population 695,000
ENVIRONMENT Change
Stakeholders Change Ethical Issue Alternatives Recommendation
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Ethical Issues before the Disaster
Stakeholders Change Ethical Issue Alternatives Recommendation
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Ethical Issues after the Disaster
Stakeholders Change Ethical Issue Alternatives Recommendation
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Alternatives Before the Disaster
Alternative #1
• Try to increase the product sales
• Keep all production
Alternative #2
• Cease production and dispose all MIC chemical gas
• Safe for the local residents
• The cost of disposing the gas is large
Stakeholders Change Ethical Issue Alternatives Recommendation
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Alternatives Before the Disaster
Alternative #3
• Cease production, keep MIC chemical, but continue to perform regular maintenance
• Does not cost too much
• Safe for local residents
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Alternatives After the Disaster
Alternative #1
• Doing nothing
• The site continues to poison residents
• Injured people who can’t work and have no family left to take care of them can’t survive
Alternative #2
• Help the doctors treat gas-affected victims
Stakeholders Change Ethical Issue Alternatives Recommendation
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Alternative #3
• Compensate the victims
• Increasing the compensation to help people survive
• Providing at least 20 years’ worth of medical expenses
Alternative #4
• Properly clean up the site and provide safe drinking water
• New generation will not be poisoned
Alternatives After the Disaster
Stakeholders Change Ethical Issue Alternatives Recommendation
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RecommendationBefore the Disaster
Alternative 3 is recommended
Management should elect to cease active production on the plant but continue regular maintenance
Methyl Isocyanate or MIC is a highly reactive and deadly gas that remained in the tanks after production was cut off
Allowing the safety system to fall into disrepair leaves the door open for a potential disaster
Stakeholders Change Ethical Issue Alternatives Recommendation
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Why?
• There is no market in India for Union Carbide’s pesticides
• Therefore, it follows that the plant should cease operations
• With the safety of Indian citizens at mind, regular maintenance should continue to prevent any disasters
Stakeholders Change Ethical Issue Alternatives Recommendation
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RecommendationFollowing the Disaster
• A combination of alternative 3 and alternative 4
• Victims need to be better compensated
• They have endured much suffering and deserve better treatment than they have received to date
• Provide compensation for at least 20 years worth of medical expenses, as oppose to the 5 years originally offered.
• Key Component of new Compensation Settlement: consultation with the victims
• Victims should have a say in compensation levels as they were the ones who have suffered
Stakeholders Change Ethical Issue Alternatives Recommendation
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Recommendation #2Following the Disaster
• Fully clean up the Union Carbide site
• Chemicals left behind by Union Carbide continue to cause environmental damage and poison a new generation
• Enough suffering has occurred in India and the upcoming generation should not be exposed to the deadly chemicals
• Also, it needs to be made certain that the soil and water near the plant are not contaminated with chemicals
Stakeholders Change Ethical Issue Alternatives Recommendation
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Why do we make this recommendation?
• Utilitarian Theory
• Compensating the Bhopal victims with 20+ years worth of medical expenses is the best solution as it provides the greatest amount good for the greatest number of people
• Although an expensive alternative for Union Carbide, compensating victims to the greatest extent possible shows victims there is genuine concern for them
• Deontological Theory
• The action of providing better compensation for the victims is a morally responsible action
Stakeholders Change Ethical Issue Alternatives Recommendation
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QUESTIONS?
THE END