Ethical Considerations in the Bhopal Gas Tragedy

This report discusses the ethical considerations in the Bhopal gas tragedy, focusing on the violation of ethical code of conduct by Union Carbide. It explores the legal actions taken and the consequences of the disaster. The report also highlights the importance of business laws in establishing and running an organization effectively.

Business law

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ( Individual report)...............................................................................................................3
Case study ..................................................................................................................................3
Ethical position of the parent US Union Carbide company........................................................6
CONCLSUION................................................................................................................................6
REFRENCES...................................................................................................................................7

INTRODUCTION
Business laws are those rules and regulation which helps in establishment of an
organization in appropriate manner possible. These laws develop structure which make and
organization to achieve its goals and objectives in effective manner. Also business laws makes
concrete framework to be formed that results in making process in an organization to run in
smooth way. These laws mainly focuses upon formation of business organization in more
affective manner possible. Scope of such laws are wider as they cover all kinds of business
existing within an country. Nature of business laws is dynamic as they make process in an
organization to be run with efficiency. In the given report an case study based upon Bhopal Gas
tragedy is been discussed in relation to ethical consideration in context of the position hold by
organization.
MAIN BODY
TASK ( Individual report)
Case study
Introduction to case:
The case is bases upon biggest tragedy that has happened in history of world. It is known
as Bhopal gas tragedy an hold its existence as an industrial accident. As per this Carbide
subsidiary makes pesticides. The plant was situated in city of Bhopal, India. On 2-3 December
1984, 40 tonnes of toxic methyl isocyanate gas which resulted into causing death of 500000
people due the gas leak. Toxic gas spread at very fast rate and created panic situation within the
city. All individual coming into the contact of the gas caused burning sensation in lungs that
caused death of 1000 people immediately(Ghosh, 2018). Later it as found that around 8000
deaths were there after the release of gas happened. In order to deal with this in proper manner
International Medical Council was formed in India in the year 1993. Then further it looked into
the matter regarding health effects of disaster.
Causes of disaster :
Plant disaster took place when producers of Carbaryl were working in the plant in the
year 1997. As per this insecticides has been made in order to produce 25000 tonne per year. The
plant hold capacity of 5000 tonne and it was not an big issue. The plant was able to handle the
content. Sale of insecticides was not going well within they year 1980 which made cost cutting

to be done. In this incident disaster happened within the tank when the store material that is
Methyl isocyanate was filled within tank. An chemical reaction took place because of carbon
dioxide which makes mixing to be done of various substances. Temperature also increased in the
container up to 200 Celsius. Pressure was so much that even stabilizers were not able to bear it
and beyond its limit. Further it was observed that condition of tank was also not good and pipe
were rusty or old. The release was so fast that within two hours whole city was filled with the gas
and due to bad condition of tank it was not able to hold the pressure. This lead over making
disaster at such level to be happened.
Legal action
In this case UCC did proceedings in cooperation with United States and Indian
government also took part in it. In this authorities working at local level as took part in
proceedings and in order to make victims get justice Indian government passed Bhopal Gas Leak
act in the year 1985. It helped Indian government become plaintiff in relation to victims which
got affected from disaster. The act made Indian government become plaintiff on behalf of
Bhopal gas victims. As proceedings were held within federal court of United States. On 17th
April, 1985 judgement was passed by the court on basis of fundamental human rights which was
violated through out the disaster. It says that instruction has been given for paying compensation
of $5 million and $10 million as compensation to its victims. This has to be done with the help of
International Red Cross Society. UCC was ready to give the amount and make full settlement but
it was not accepted by Indian government. On March 1986 UCC prosed the figure by concerning
with U.S attorney general that was 350 million dollar. This has to be made by the organization to
Indian government. So, this made code of conduct to be unethical on part of Bhopal Victims and
estimation on damages was approximately $500–600 million over 20 years. Then Indian
government urged for transferring of case from United sates Federal court to Indian Supreme
Court. Then it was initiated in the year 1987. In this litigation UCIL was made separate entity
with Indian citizens (Gerard, 2018).
Government of India has not accepted the offer that was made by Union Carbide and in
this claim is done for US$3.3 billion as per the guidance of court. According to the trial
conducted by Supreme Court which makes trial upon cleaning stake and its order issued. The
result of this was that in 1988 proceedings began and court settlement was initiated in the year
1989. Also union Carbide made agreement over paying of US$470 million in order to make

refund for Bhopal disaster. In this refund initiated on immediate basis of order that has been
passed by Supreme Court of India.
Supreme Court of India in the year 1990 has made appeal upon settlement of case the
result was that judgement passed by Supreme Court of India is that $470 million is to be paid.
Them in this dismissal of the petition was done in final manner. As per the court order Indian
government making purchase in relation to settlement in relation to funds through insurance and
in this 100000 persons is covered which makes symptoms to be covered under it also. Further
judgement passes by Supreme Court was bound to be followed by both parties and UCC was
required to pay the amount in form of subsidiary to persons got affected from the disaster and for
there treatment also money has been given.
Code of ethical conduct
Ethical code of conduct means those rules and regulation in relation to ethical code of
conduct. In this fair and honest integration has been made which is related over professionalism
followed within a organization. In this code of ethics is written statement that is related over
organizations norms. According to ethical code of conduct value is been increased through
professional conducts and motivation given to employees. (Edelson, Senk and Stock, 2018). This
makes ethical framework in relation to code proceeding which makes proceedings to go in
effective manner possible. Further various important part of ethics has been explained as
follows:
 These rules makes an organization develop ethics within framework which makes
professional activities done in more effective manner. It is based upon integrity and
honesty within work done in an organization.
 Members of an organization should make strict laws in case of violation of ethics which
may result into termination of employees.
 Various industries and banking finances uses the code of ethics in developing of
businesses with more positive environment. Though is based upon voluntary adoption
only.
Ethics issues that occurred during the disaster is related to proceedings held within the
court of U.S Federal court. As they did not understand the facts of case from both the sides. That

is why there judgement lack transparency and consistency. So, it shows that ethical code of
conduct was not followed by the court.
Further it can be observed that Corporate Social Responsibility was not followed due to
the condition of plant within which pipes were rusty and tanks were not cleaned in proper
manner. If this would have been followed then disaster would have not taken such heinous
shape.
Ethical position of the parent US Union Carbide company
The above case scenario makes it clear that the disaster was violation of ethical code of
conduct. It was such a big disaster which made death of thousands people and also affecting
various in long term. There was major involvement of Union Carbide within disaster that took
place. In this case it has been analysed that code of ethics were not been followed by an
organization as it used court to escape the matter rather then dealing with it in effective manner.
This showed that how are organization was willing to escape the situation by using its own
judicial authority. Also it can be marked out that CSR was not followed by Union Carbide which
comes under violations of ethical code of conduct within the organization (Davitti, 2016).
CONCLSUION
It can be concluded from the discussion that business laws are the laws that makes
establishment of business organization possible. Further the file covers about ethical issues took
place in relation to disaster of Bhopal gas tragedy. Also in this facts related to disaster has been
discussed to justify the ethical violation that has taken place.

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