Download - BHOPAL GAS TRAGEDY
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.