Ethical Position of Union Carbide, US in the Aftermath of Bhopal Gas Tragedy

Business Law and Ethics –
Part 2
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Table of Contents
Introduction......................................................................................................................................3
Part 2 Ethical position of Union Carbide, US in the aftermath of Bhopal Gas Tragedy.................3
Scenario.......................................................................................................................................3
Stakeholders of the case..............................................................................................................4
Ethical issues faced by Union Carbide, US................................................................................4
Approaches by company.............................................................................................................5
Recommendations.......................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................8
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Introduction
Ethics is that branch of knowledge that deals with moral principles. These moral
principles govern a person's behaviour and the perception of right and wrong. In businesses,
ethics includes those underlying values and principles that drives an organisation's approach and
decision-making (De and et.al., 2020). It influences business decision-making in contingencies
and conflicting situations. Below mentioned report is aimed at assessing ethical position of the
Union Carbide company, US in the wake of Bhopal Gas Tragedy which took place in one of its
subsidiaries in India. Company deals in chemicals and polymers. Ethical dilemmas faced by the
company and the position it adopted forms the centre point of discussion in this report.
Part 2 Ethical position of Union Carbide, US in the aftermath of Bhopal Gas
Tragedy
Scenario
Case study taken as reference in this scenario is known as Bhopal Gas Tragedy or Bhopal
disaster. It took place in the night of December 2-3, 1984 in Bhopal, a small town in the Indian
state of Madhya Pradesh and is acknowledged as one of the most disastrous industrial tragedies
in the world. Background of this case study involves US chemicals and polymers producing
company Union Carbide which entered into partnership with Government of India through its
subsidiary Union Carbide India Limited to produce pesticides from its plant opened in Bhopal.
On the unfortunate night of tragedy, Methyl Isocyanate (MIC) gas and other chemicals got
leaked from their plant and started spreading across the near by areas which includes residential
areas, risking the lives of people residing there. It polluted air, water and land that came in its
contact, increasing the exposure of harm to farther areas. There was white smoke all over the
area which caused fatal injuries to hundreds of people resulting in their death. Hundreds of others
suffered from blindness, burns, lesions in their respiratory system, etc. Many of the ill-effects of
the tragedy can be felt by local residents till date (Rajan, 2019).
Official investigation was launched in the case and it reported that incident happened due
to non-maintenance of the safety systems at the plant. Company was accused of slackness in
their management and received criminal and civil charges against it in Indian courts.
Government of India also included parent US company and its Chairman Warren M. Anderson
in its legal suit for negligence. Company argued that it was not their management failure but
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