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› Dec 2, 1984
› Bhopal, Madhya Pradesh, India:
› At the death of night 42 tonnes of methyl isocyanate
leaked out from the Union Carbide Pesticide plant.
› A population of 500,000 people exposed to the lethal gas:
Thousands died immediately, rest were left to suffer a slow
death or an even more painful life
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" The use of hazardous chemicals (MIC) instead of less

dangerous ones
" Storing these chemicals in large tanks instead of over 200 steel
drums.
" Possible corroding material in pipelines
" Poor maintenance after the plant ceased production in the
early 1980s
" Failure of several safety systems (due to poor maintenance
and regulations).
" Safety systems shut down to save money - including the MIC
tank refrigeration system which alone would have prevented
the disaster.
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" There were mass funerals and mass cremations as well as

disposal of bodies in the Narmada river. More than 170,000
people had to be treated at hospitals and temporary
dispensaries.
" More than 2,000 buffalo, goats, and other animals were
collected and buried.
" Contamination of ground water in UCF neighborhood
" Destruction of vegetation
" Massive shortage of supplies of basic necessities, including
food, due to the safety concerns of the suppliers.
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" The company charged the governments with "contributory"

responsibility for the leak of poisonous gases, saying both
governments knew of the toxicity of MIC but failed to take
adequate precautions to prevent a disaster.
" UCC further argued that the day-to-day working of UCIL was
independent of the parent company and therefore it could not
to be held responsible for the gas leak.
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" In addition to causing the Bhopal disaster, UCC was

also guilty of prolonging the misery and suffering of
the survivors.
ͻ It withheld medical information on the chemicals, thus depriving
victims of proper medical care.
ͻ It delayed the legal case at each stage in its progress through the
courts
ͻ UCC͛s determined response was to evade responsibility and
compensation claims was driven by the need to convince
shareholders and financial markets that the company would not be
crippled by legal actions and massive financial claims on assets and
profits.
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1.Relationship Between Society and Business

  


" Responsibility to society precedes law

" Law is an instrument to make accountable the various forces
within a society towards the greatest good of the greatest
number of people
" Industries are regulated by laws to protect the various
stakeholders
› But͙ What happens when the law fails to serve this purpose?



  
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› The Legislative Authority

› The Executive/ Regulatory Authority
responsible
› The abiding industry/ company
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" The pesticide giant was allowed to operate with less

stringent safety requirements
Because it facilitated
" Increase in food grain production
" Employment opportunities
But what resulted from these compromises was not
the desired result, but a most horrifying disaster that
claimed the lives of thousands.
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 !

"

› They should have tried to move them to a safer place.

› What may not be legally required may be moral.
After the incident, it was the moral responsibility to pay
these squatters adequate compensation even though they
were staying near the plant illegally.
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"

› They should have trained these workers properly to

understand the hazardous nature of the chemicals
and the risks involved.
› Proper workplace and equipment safety standards
should have been followed.
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› The managers had tried to close down the loss

making plant. It was for the good of stockholders.
› But after the incident, they tried to evade
responsibility and tried to convince the shareholders
and financial markets that the company would not be
crippled by legal actions and massive financial claims
on assets and profits.
Instead they should have been transparent about the
happenings and admitted their guilt.
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" Introduced such a dangerous and complex modern pesticide

technology into a country knowing well that it had a highly
unskilled workforce and a largely illiterate population.
" The American managers regularly reviewed the reports from
the Indian company , controlled annual budgets , set major
policies and issued technical directives for operating and
maintaining the plant.They had the moral responsibility to
ensure that the policies and directives were being
implemented.


" Didn͛t maintain skilled operators due to staffing policy.

" Plant maintenance was insufficient.
" Complied to fairly low safety standards
" Didn͛t train the workers or educate them about the hazardous
nature of the plant.
" Didn͛t bother to move the illiterate squatters who lived in a
proximity to the plant even though it was illegal.
" Failed to correct the major flaws in safety equipment and
procedures found by the engineers sent by the parent company.
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› Many were illiterate and unaware of the danger.

› 70% of the workers were fined after they refused to deviate
from the safety guidelines after the cost cutting measures
were taken.
› Some skilled operators found out problems and left.
They did internal whistle blowing while leaving but could have
done external whistle blowing.


› It was the most responsible of all the parties

involved.
› It set lax laws allowing low standards for
environmental equipment and workplace protection
› It didn͛t bother to check if the safety standards set by
the parent company are being implemented in the
plant
›         
  

        
   
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› Though they had illegally set up the houses near the

factory, most of them were poor and illiterate and
were not aware of the danger and thought the
factory made ͚healthy medicines for Plants͛
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› Persistence of Socio-economic problems
ͻ Poverty,
ͻ unemployment,
ͻ inequality
ͻ fulfilment of basic needs
› Basic economic development needed before the use of advanced
technologies.
› In UC͛s case, India lacked
› proper infrastructure,
› safety regulations,
› education
› UC tried to leverage on the prevailing unemployment.
› Hence the needs of these countries must be balanced against the
use of modern technologies.

)))

› Proper education about the technology and the

dangers involved in its usage.
› Ex. In UC case- one of the main reasons of tragedy was the
workers were uneducated.
› The manuals were in English.
› Labourers had no knowledge about the
ͻ Harmful effects of the gas,
ͻ The precautions or
ͻ The importance of the coolants.
› Stringent environment and health safety regulations
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› Exploits under-developed nations, to expand its profit

motives.
› In this case, the American headquarters should have
ensured that safety regulations are met.
› Especially when it is known about the inadequate
knowledge of the Indian subsidiaries and workers.
› Ethical dilemma of either staying loyal to the
organisation by expanding profits or consider the
possible dangers the workers are exposed to.
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› Profit motive at work behind the cost cutting measures

adopted by UCF in India
› Profit motive present in employing cheap labor
› Gross disregard for human lives in accordance with the
capitalistic view of human labor as any other replaceable input
But͙
› System alone can not be at fault
› Case in point: the Chernobyl disaster in erstwhile USSR
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