Bhopal Gas Tragedy: Case Study and Ethical Considerations

This report focuses on the Bhopal Gas Tragedy case study, discussing its causes, legal actions, and ethical considerations. It explores the ethical position of the parent company, Union Carbide, and highlights the importance of following ethical codes of conduct in business.

Individual report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ( Individual report)...............................................................................................................3
Case study...................................................................................................................................3
Introduction to case.....................................................................................................................3
Causes of disaster: ......................................................................................................................3
Legal action ................................................................................................................................4
Code of ethical conduct ..............................................................................................................5
Ethical position of the parent US Union Carbide company........................................................6
CONCLSUION................................................................................................................................6
References........................................................................................................................................6
books and journal .......................................................................................................................6

INTRODUCTION
Business law can be defined as that body of law of which helps in regulating business
function in appropriate ways so that ethical standards can be meet (Island, 2020). This provide a
structural framework to business firm in order to establish systematic approach for meeting
requirements of clients (Bhaduri, 2019). In relation to current report, Bhopal Gas tragedy will be
focused. This is an inclusion of various discussions for moral consideration with regards to
position of an organisation.
MAIN BODY
TASK
Case study
Introduction to case
This case study include discussion about Bhopal gas tragedy. This is based on plant of
Carbide subsidiary; it is pesticides making firm. Company is using different gases and materials
in order to manufacture pesticides in its plant situated in Bhopal, India. This tragedy is related to
gas leak in plant of this organisation (Amyotte and Khan, 2019). This tragedy occurred in year
1984 on 3 Dec., in the process being for about 40 tonnes of methyl isocyanate gas was being
leaked, which resulted in causing deaths in mass number for about 5 lakh people living in that
area. This created panic situation in Bhopal and cause number of deaths due to toxic gas. This
also resulted in formation of International Medical Council (Sharma, 2016). This act as
government body which will look after different matter regarding health effects of disaster. This
will help in addressing issues as well as fulfilling ethical requirement.
Causes of disaster:
This disaster was happened at the time when employees of firm are working. This was
happened in year 1984. At its time company is performing with its effective capacity of 5000
tonnes. Here, company was working to full fill an order of 2500 tone (Mishra, 2018). This brings
clear understanding of the subject matter that, the real cause of this tragedy was not because of
any overloading lodges or any issues related to capacity of containers. With addition to that, it
also analysed that sales activities of respective business firm faced a downfall in that particular
year. In order to improve this, firm is performing its function of cut cost of production and

perform task in more lean way. The main reason behind this case is, entry of water in tank
containing Methyl isocyanate (Maslen, 2019). This directly stated chemical reaction which
resulted in development of Carbon dioxide, among other things. All this resulted in building
presser on tank, this is because due to above stated reaction, temperature of tank reached over
200 °C (392 °F). this pressure is that much that rectors was not able to control it. In order to
release pressure, it is needed to take out the gas out of tank (Rabbi and Sabharwal, 2018). This is
an emergency call which related to transfers of gas in local environment and due to rust in gas
pipes, this reaction become more fast. Therefore, entire tank will get unoccupied in 2 hours and
released toxic gas in environment. This gas lead to causing deaths for more than eighth thousand
people, residing in respective region, in a single day.
Legal action
Legal action is must be taken in respective case. To begin with, legal formalities with
relation to UCC were stated in collaboration with Indian government and US. As on February,
1985 Indian government reported the case against Union Carbide Corporation in U.S Court for a
claim of $3.3. But due to factor related to non-convenience in 1986, U.S District were transferred
to India. This is because, it will help in functioning of case on more smooth way. This also
resulted in passing act after this Bhopal Gas Leak Disaster. This act includes empowering the
Central Government to become the sole representative of all the victims in all kinds of
litigations. This aims to helps the victims of the disaster by make sure their full protection and
the claims for compensation are pursued speedily (Krishnan, 2019). After this, a case was filed in
Bhopal District court where court ordered UCC to pay interim compensation of 350 Corer. In
this case, UCC refused to pay this because the interim order could not be decreed. Thereafter,
case passed to high court (Argus and Samson, 2021). It ordered to reduce the amount to 250
corers which was appealed by Union of India and the UCC.
There are number of twist under this case where there is different factor that are involved
in it. In 1989, there is an approach came which is related to out of court settlements. This take
place between central government and UCC. Under this, total liability of union Carbide settled to
$470 million. This was related to all claims, rights, and liabilities arising out of the disaster. All
the teams are related to settlement of all claims, rights, and liabilities arising out of the disaster.
This would mean that henceforth, all kinds of liability arising out of the disaster could be fixed

only upon the Government of India and the Union Carbide would be held liable only to the
extent of $470 million (Patton, 2019).
This can be seen that there are number of conflicts in this function which have to be
settled in order to meet needs of person who suffered in this tragedy. This also raised future
issues related to those individuals who suffered in this disaster. AS, the demanded amount is not
sufficient to fulfil demand of each and every person. Under this, there are different factor which
have to be consider by Court in order to meet needs and perform task in effective way. These are
related to emotional values and ethical conduct (Paradice and et. al., 2018). This is because,
whole disaster is based on improper management and unfit condition of plan where company is
likeable to pay for all deaths.
In relation to this, court ordered Indian government for enhancing purchase. This is in
context of settlement of funds through insurance. This include 100000 persons. The order was
being accepted by company by making findings and UCC was being requested by court for
making subsidiary over the Voluntary funds and treatment of victims with amount of $17 million
was given for the purpose (Singh and et. al., 2018).
Code of ethical conduct
Code of ethical conduct
Ethical code of conduct outlines ethical principles within which professional conduct is to
be done which makes honest integration to be generated and which governs decision and course
of action in any organisation. According code of ethic, there should be a written statement which
adds value and makes development in more impactful way. As per this, there should be
professional conduct which has to be made through developing possible rules and regulations
which should be religiously adhere by each and every member of organisation. According to
ethical code of conduct there is increase in value by making professionalism maintained in the
court proceedings (Shafique, Kalyar and Rani, 2020). To make code of proceeding effective
there should be ethical framework which can be framed adhering ethical code of conduct.
Various important parts of ethical code of conduct is explained below:
By making professional conduct possible, such rules and regulation makes an organization to
follow ethical framework. In this probity and rectitude is covered through professionalism.
Members of organisation should religiously adhere to ethical code of conduct and if any
member failed to follow framework, order of termination shall be faced.

Under respective industries different things are being included by establishment of banking
with finance sector to be specified by helping in governing of business that has been formed.
Ethics are those kind of norms and set of regulations which consists operations that is been used
in proceedings. Problems related to moral decision, employees and employer disputes and other
organisational issues can be handled and solved using and following ethical code of conduct.
Issues related to bribery, social responsibilities, racial and caste discrimination can also be dealt
following ethical code of conduct.
Ethical position of the parent US Union Carbide company
After deep analysis of case study of respective tragedy which the most heart wrenching
disaster which happened in India. There was thousands of innocent people who have to
sacrifice their life also affecting there left ones in long term. Union Carbide is the parent
company which was involved in this disaster. Analysing this case, we can clearly see that
code of conduct was not followed. To run away from this tricky situation organisation
agreed to refund to all those people who are directly or indirectly suffered from that
tragedy which was not appropriate even for half of people who had suffered. Evidently we
can clearly recognise that the organisation was trying to run away from judicial
proceeding. Victims was only compensated appropriately only when Supreme Court has
made judgement to charge organisation $470 million as a compensation for disaster
(Davitti, 2016).
CONCLSUION
It can be concluded from above information that it is essentials for business firm to
follow rules and regulation in order to meet needs. This include number of ethical rules and
regulation which help in meeting needs and perform task. This tragedy sets an example of
different other moral consideration violated in relation to court and its proceedings. Moral issue
that has been formed is in relation to the order passed by court.

REFERENCES
Books and journal
Bhaduri, R. M., 2019. Leveraging culture and leadership in crisis management. European Journal
of Training and Development.
Amyotte, P. R. and Khan, F. I., 2019. The role of inherently safer design in process safety. The
Canadian Journal of Chemical Engineering.
Mishra, R., 2018. An Indian Perspective. In International Relations and Asia’s Southern Tier (pp.
357-366). Springer, Singapore.
Maslen, S., 2019. Safety management through values: A critical engagement with the moral
labour of disaster prevention. Safety Science, 120, pp.484-491.
Rabbi, M. F. and Sabharwal, M., 2018. Dynamics of Nuclear Energy Policies in India: A Case
Study on the Emergence of Nuclear Safety Regulatory Authority. Indian Journal of
Public Administration, 64(4), pp.664-685.
Krishnan, J. K., 2019. Bhopal in the Federal Courts: How Indian Victims Failed to Get Justice in
the United States. Rutgers UL Rev., 72, p.705.
Argus, D. and Samson, D., 2021. Corporate Social Responsibility. In Strategic Leadership for
Business Value Creation (pp. 107-127). Palgrave Macmillan, Singapore.
Patton, R. L., 2019. Lockheed, Atlanta, and the Struggle for Racial Integration. University of
Georgia Press.
Kamdar, M., 2018. India in the 21st Century: What Everyone Needs to Know®. Oxford
University Press.
Paradice, D. and et. al., 2018. A review of ethical issue considerations in the information systems
research literature. Foundations and Trends® in Information Systems, 2(2). pp.117-236.
Shafique, I., Kalyar, M. N. and Rani, T., 2020. Examining the impact of ethical leadership on
safety and task performance: a safety-critical context. Leadership & Organization
Development Journal.