Ethical Issues at Union Carbide: Bhopal Gas Tragedy

Business Law and Ethics –
Part 2
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Table of Contents
Introduction......................................................................................................................................3
Part 2 Ethical issues at Union Carbide.............................................................................................3
Case Study...................................................................................................................................3
Stakeholders of the case..............................................................................................................4
Ethical issues...............................................................................................................................4
Ethical dilemmas.........................................................................................................................5
Approaches adopted....................................................................................................................6
Approaches suggested.................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
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Introduction
Ethics refers to the system of moral principles and and seeks to define behaviour that are
considered right or wrong. Ethics in business refers to those policies and practises which an
organisation is expected to practise in the face of situations which are controversial and give rise
to ethical dilemmas (Bowie, 2020). This report is aimed at assessing the ethical position of the
parent US Union Carbide company in the aftermath of the Bhopal Gas Tragedy in its subsidiary
in India. Union Carbide Corporation is an American multinational chemicals and polymers
producing company. Ethical issues which arose in the case and different approaches adopted by
the company are discussed in this report.
Part 2 Ethical issues at Union Carbide
Case Study
Presented case study is based on Bhopal gas tragedy also known as Bhopal disaster. It is
considered as one of the worst industrial disasters in the world. US Company Union Carbide
Corporation operates in India through its subsidiary Union Carbide India Limited in partnership
with Government of India. This unfortunate case happened at its pesticides plant at Bhopal, a
small town in Indian state of Madhya Pradesh. On the night of December 2-3 1984, Methyl
Isocyanate (MIC) gas and other chemicals leaked from the plant and risked the lives of hundreds
of thousands of people (Palazzi, Currò and Fabiano, 2015). It also harmed environment and
polluted air, water and soil of the nearby areas. MIC is highly toxic and reacts more strongly
when it is combined with other agents including water. Reported official cause of the tragedy is
slack management and non-maintenance of the safety systems at plant by the Company while
company argues that it was result of intentional sabotage which led to failure of safety systems
and water entered into the tank where MIC was stored and resulted into a boiling effect in the
tank which caused safety valves to explode and lethal white smoke to attack the city of Bhopal
(Ajith and et.al., 2017). Smoke caused fatal injuries as well as non-fatal injuries including
blindness, burns, lesions in respiratory system, etc. Government of India paid compensation to
the victims and filed legal charges against Union Carbide and its Chairman at that time, Warren
M. Anderson. Company settled the case with the payment of $470 million in 1989.
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