Business Law and Ethics

This document discusses the study of business law and ethics, focusing on the ethical position of UCC Company and the Bhopal gas tragedy. It explores the importance of following ethical practices in business and the consequences of not doing so. The document also analyzes the CSR obligations and ethical issues in the Bhopal Union Corporation. Recommendations are provided for implementing ethical responsibilities.

Business Law and Ethics
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Table of Contents
INTRODUCTION...........................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5
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INTRODUCTION
Business law and ethics are defined the study of specifically developed to address moral
value concern about the organization. While it comprised of different changing topic in order to
improve understanding towards roles and responsibilities of organization. Ethics is define as
moral philosophy, discipline focused with good and wrong things. It applied to any system or
theory of moral value in the business ethics. Every company is required to follow certain ethics
which consists of several policies and practices that is followed by them. The practices or
policies are set by government (Reynolds, and Dang, 2017).It includes corporate governance,
trading, discrimination, CSR, etc. Also, it state that organisation is working in ethical way.
Besides that, if ethics are not followed then it create a negative impact on its brand image in the
market. Moreover, it can also led to taking legal action against it as well. The purpose of this
report is to identify the Bhopal gas tragedy and ethical position of UCC Company. This
documentation will discuss the about the tragedy which is mainly occurred due to lack of ethical
issue. These will directly affecting on the overall business condition or situation.
ANALYSIS AND DISCUSSION
Business ethics in business or ethical behaviour-
The transnational Corporation and globalization of economic activities has increased to
various issues such as CSR and corporate Governance. According to the case study of Bhopal
Gas tragedy, It has been exploits the environmental regulations, standards of specific condition
as well as basic employee rights. These are consider the important business ethics in term of
ethical manner. Therefore, Union Carbide Company will follow the proper standards, norms,
rules and regulation in order to maintain a proper ethical behaviour in proper manner.
CSR- Corporate Social Responsibility-
Under CSR obligations, it will be changing the business self-enthusiasm, taking care of
various advantage, benefit and argumentation. Additionally, in charge of natural, human and
societal obligations. CSR help for business to deal any kind of issues while implementing
appropriate moral principles. On account of Bhopal gas disaster, it has been spreading the
boarded code, criminal trick however it is completely neglects under CSR obligation.
Ethics are considered as a specified set of rules that are offering guidance regarding the
behaviour towards one another. The Bhopal gas leaks gives points to the violations regarding
ethical principles (Köseoglu. and et.al., 2016). For Example- The Indian Subsidiary was
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considered as different entity as well as avail the tax benefits given through Indian Government
and escape the complexities that will be included if the Union Carbide enters directly.
Apply the Relevant theory or approach to the case study of disaster in relation to ethical position
of parent US Union Carbide Company
Bhopal gas strategy was gas leak incident within India and also considered as one of the
worst industries catastrophes of the world. It can occurred on the night within the 1984 at the
Bhopal UICL pesticide plant. The population of the Bhopal at that time was 800,000 people and
also it was the home to the largest mosque within India (Lämsä. and et.al., 2018).
In 1969 within Bhopal the firm's pesticides plants was constructed, Bhopal which is
located within the middle of the nation known as the city located within a nearby lake that can
be acted as a source of fresh water. The plant was considered as the crown of Indian
Industrialism. At that time MIC was used known as Methyl isocyanine as an intermediate within
the production of the carbon pesticides. Earlier MIC was imported from the United States but
after that a new plant was planned in order to produce MIC (Rhodes, 2016).
Social contract theory, The company will focus on establish a better contract woth other
enterprise while identifying the MIC become as highly toxic as well as reacts strongly with
several other agents that includes water also. Within the Process of MIC there is a need of the
detailed monitoring and security process in order to prevent sabotage (Dierksmeier. and Seele,
2018). On 3 Dec 1984, MIC stored within a tank came within the contact with water and hence
outcomes was a boiling effect within the tank and Hence the result was toxic mixture starts
leaking and employees at the plant felt burning sensation in their eyes and boiling of water
explode the safety valves and hence there is white smoke spread across the city area of Bhopal.
When the gas floated within the air there were around 3,500 lives lost as well as 200,000 people
were injured. Here the initial death and injuries were beginning as it causes long term health
effects also. As the women who were pregnant as well as exposed to the MIC one fourth of the
miscarried or had babies with the Birth defects. In addition to this Children also developed
chronic respirator issues as well as smaller children also suffered from ongoing illness and lack
of nutrition and also died. Also peoples are suffering from Tuberculosis and also suffered from
several lung diseases.
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Analyse ethical and CSR issues in Bhopal Union Corporation
Within the Bhopal Union Corporation that is considered as one of the Union Carbide
Corporation has several failures within the working conditions such as lack of safety,
maintenance regarding machinery as well as environmental standard in order to save money as
well as not concern regarding natural environment. As the case was dismissed because of the
lack jurisdiction over the plants and victims (Kačerauskas, 2019). Within the year 1999, Dow
Chemical acquired Bhopal Union Carbide Corporation, the firm was unable to take or accept the
accountability for the Catastrophe of Bhopal because of the share price. Also after that
government of India sold the firm's assets in order to construct hospitals near the Bhopal for the
victims (Rhodes, 2016).
It is also a dilemma issues for Bhopal Union Carbide Corporation as they knew that the
business was not considered as profitable but also at the same time government asked them to
run so that they can aids to increase the productivity of the Indian Farmers and also support
Indian economy by this Plant (Abend, 2016). Thus due to this dilemma , the Bhopal Union
Carbide Corporation also avoid the Environmental responsibility so that they can save money by
keep business running while ignored the working conditions (Dziubaniuk, and Nyholm, 2020).
Apart from that, there are certain ethical negligence as well which were not followed by UCC. It
is defined as
Corporate negligence argument – In this it was found that local government did not invested
huge amount in safety due to which it led to creating a dangerous environment.
Safety audits – this ethical issue occurred as there were no safety audits that was done even
when in UCC report it was found that in MIC there are number of defects. Thus, in unit storage
tank was not enough to prevent catastrophic failure (Vazquez, 2018).
Disgruntled employee sabotage argument – UCC stated that incident was result of sabotage as
there were insufficient safety system that were installed in plant. So, it was not able to prevent
intrusion of water.
Unethical issues Key parties
Mention below are the four key parties that can be occurred because of the Bhopal Gas
Tragedy as they are
Indian Government
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The one who is unable to control the environment issues for business and industries as
the government is accountable in order to makes the polices while compromise between
environment safety and business (Tormo-Carbó,Seguí-Mas. and Oltra, 2018).
Environment
The one that is influenced through tragedy is environment all over the Pesticide plant as
it has Ecosystem such as water tress and soil and civilizations all over the Pesticide plant and
secondly Civilizations all over the pesticides plant such as Shanty Towns.
Bhopal Union Carbide Corporation ( UCIL)
The subsidiaries of UCIL had a pesticide plant business within India as Bhopal with
management was accountable as due to the unfriendly environment business that are unable to
pay attention to CSIR.
Union Carbide Corporation ( UCC)
One of the Parent Corporation regarding Bhopal Union Carbide Corporation as here the
chairman is consider as one of the most accountable for the Catastrophe of Bhopal gas. As
Anderson as a chairperson arranged alongside the India's government in order to build the
pesticide's plant (Vidgen, Hindle . and Randolph, 2020).
CONCLUSION AND RECOMMENDATION
Conclusion
From report it can be concluded that in Bhopal gas tragedy there were various ethical
negligence which were not followed such as corporate negligence argument, safety audits and
disgruntled employee sabotage argument. Due to that UCC was liable for this overall tragedy. It
is required for company to pay compensation to victims of disaster as they have not followed
business ethics properly.
Recommendation
The company will implement Ethics Responsibilities, Union Carbide Company should adopt
the effective policies and processes that help for recognize ethical duties in context of health
standards for long time intervals.
 Fully inform about the current risks, threat of long duration and exploration space flight. It
make sure that informed better decision making process within adequate manner.
 Adhere to the continuous learning strategy and approach which help for ensure that
evolve or improve health standards. Afterwards it will provide the awareness regarding
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safety among people. Through this way, it can support for gaining more data or
information.
 It has been suggested that taking advice about any decision and allows them to achieve
goals to meet better standards, normal in term of decision-making.
 Provide the better equality of opportunity for individual people in long time duration and
exploration.
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REFERENCES
Books and Journals
Abend, G., 2016. The moral background: An inquiry into the history of business ethics (Vol. 60).
Princeton University Press.
Dierksmeier, C. and Seele, P., 2018. Cryptocurrencies and business ethics. Journal of Business
Ethics, 152(1), pp.1-14.
Dziubaniuk, O. and Nyholm, M., 2020. Constructivist approach in teaching sustainability and
business ethics: a case study. International Journal of Sustainability in Higher Education.
Kačerauskas, T., 2019. Ethics in business and communication: common ground or
incommensurable?.
Köseoglu, M.A. and et.al., 2016. The evolution of business ethics research in the realm of
tourism and hospitality. International Journal of Contemporary Hospitality Management.
Lämsä, A.M., and et.al., 2018. Narrativity and its application in business ethics research. Baltic
Journal of Management.
Reinecke, J., Arnold, D.G. and Palazzo, G., 2016. Qualitative methods in business ethics,
corporate responsibility, and sustainability research. Business Ethics Quarterly, 26(4),
pp.xiii-xxii.
Reynolds, S.J. and Dang, C.T., 2017. Are the “customers” of business ethics courses satisfied?
An examination of one source of business ethics education legitimacy. Business &
Society, 56(7), pp.947-974.
Rhodes, C., 2016. Democratic business ethics: Volkswagen’s emissions scandal and the
disruption of corporate sovereignty. Organization Studies, 37(10), pp.1501-1518.
Tormo-Carbó, G., Seguí-Mas, E. and Oltra, V., 2018. Business ethics as a sustainability
challenge: higher education implications. Sustainability, 10(8), p.2717.
Vazquez, P., 2018. Family business ethics: At the crossroads of business ethics and family
business. Journal of Business Ethics, 150(3), pp.691-709.
Vidgen, R., Hindle, G. and Randolph, I., 2020. Exploring the ethical implications of business
analytics with a business ethics canvas. European Journal of Operational
Research, 281(3), pp.491-501.
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