Law and Ethics: A Case Study on the Bhopal Gas Tragedy

This report discusses the relationship between law and ethics in the context of the Bhopal gas tragedy. It examines the violations of ethical conduct, legal actions taken, and the concept of corporate social responsibility. The case study highlights the importance of maintaining ethical standards and fulfilling social responsibilities in business organizations.

Law and Ethics

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ( Individual report)...............................................................................................................3
Case study ..................................................................................................................................3
Corporate Social responsibility ..................................................................................................6
Ethical position of the parent US Union Carbide company........................................................7
CONCLSUION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Business laws are the laws deal over those things that has been used in making various
kinds of laws which helps in formation of business organization possible while maintaining of
legal standards. Such laws help in managing of various process within an organization in smooth
and appropriate manner. This provides legal framework which makes business organization set-
up in appropriate manner possible. Ethics are the rules and regulation that makes decision to be
taken in with legal laws to be protected. It makes business laws for making management
improved within its working. Ethics helps in maintaining of professional conduct within an
organization. These laws help in making goals and objectives achieved in more effective manner.
Further it makes working environment to be improved which makes employees feel more safe
and secure within an organization. Nature and scope of both laws is wider with dynamic rules as
it cover all aspects within business achieved with improving its environment. The report is based
upon Bhopal gas disaster within which ethics were been broken by the organization involved
within it.
TASK ( Individual report)
Case study
Introduction to case
The case is named as Bhopal disaster or Bhopal gas tragedy within which the issue
accrued is based upon accidents caused in industry. This is one of the most dangerous incident
within history of world. Such disaster has been taken place within Carbide subsidiary pesticide
plant situated in the city of Bhopal, India. During 2-3rd December 1984 around 40 tonnes of
toxic methyl isocyanate gas was leaked within the city (Matthews, 2019). In this 500000 persons
were killed who come direct contact with the toxic gas. The spread of gas was there on whole
city which created situation of chaos and instability within city. This happened because of
irritation within lungs of an person. In this 1000 persons died as the gas was spread immediately
which resulted in causing death of 3,598 in 1989. Just after two weeks gas got leaked and lead
over causing 8000 people's death. Then there was formation of International Medical
Commission in year 1993 which has made establishment of various functions possible and also
deal upon having long term impact upon disaster.

Causes of disaster
The disaster has happened within Carbaryl' that was been produced within the year 1997.
This is an insecticide used within agricultural work and production was done 25000 per year. As
the plant was having 5000 tonnes capacity to be produced. Selling started of insecticide in the
year 1980. It did not go well according to exception which made cost cutting take place within an
organization. It makes plan to loose its hold in market and also containers were not in good
condition. Main cause of disaster is related to water tank which makes tank which is used for
doing storage of Methyl isocyanate. Such mixing caused chemical reaction within the tank which
caused gas leak to happen. Also the temperature increased with such high density that even
stabilizers were not able to control it (Khairuldin and et. al., 2019). The pipes were also not in
good condition and were not maintained in proper way. These were also broken and were very
old. In this leak the impact was very drastic which made various death caused of people within
society. Content from the tank released so fast that within two hours it captured whole city.
Legal action
In the legal proceeding UCC has been considered as prime focus. Further the first
proceedings took place in United states court and further Indian Government was also involved
within it. Further Indian government passed the act of Bhopal Gas Leak on march 1985. This
allowed Indian government to present themselves on behalf of victims in proceedings taking
place within court. All these things were done before the court proceeding began within
international court. Also the case has taken lot of time in getting appropriate decision in relation
to relief of victims. The proceedings have taken place within Unite States court and judgement
was passed on April 17th 1985 by Federal district court of U.S. The judgement stated that Union
carbide is required to given compensation of $5 million and $10 million to persons getting
injured from the leak that has taken place. This was considered as violation of human rights as it
was biased decision made in favour of Union Carbide. The money was distributed with the help
of Red Cross Society which is an NGO. The money has to be given over full settlement of the
case and the offer was rejected by government of Indian. (Key, Azab, C. and Clark, 2019).
Further in they year 1986 UCC has been making settlement in relation to figure presented
by Plaintiff the amount was not even half. That is why the rejection was done by Indian
government upon order. This was considered as ethical code of conduct violation. Original loss

that has been fined out was 600 million over 20 years. So, seeing this on request of Indian
government the case was transferred to Supreme Court of India.
After this facts of the case and judgement passed by U.S court has been analysed again in
the year 1987. In this UCIL was made separate entity with Indian citizens (Cumming, Hou and
Lee, 2016).
Government of India marked another claim over Union Carbide which was of US$3.3
billion. The Supreme Court regarding claim started looking within the case again in relation to
clean state. Further proceedings were again taken into account on November 1988. Also out of
court settlement was initiated on February 1989. After making full judgement passed and agreed
to gave compensation of US$470 million to victims of disaster.
In the year 1990 Supreme court of India passed the judgement upon appeal that has been
initiated. The in 1991 Supreme Court gave clearance over payment of $470 million and the
petition was dismissed. Also it guided about making the payment done firstly by covering
100000 persons. Further the order was initiated by the company as per court's guidance.
Code of ethical conduct
Ethical code of conduct refer to as those principals which has been formed in order to
maintain professional ethics within an organization in appropriate manner. These are based upon
truth and fairness which leads over developing ethical conduct. There main aspiration is over
making sure that employees perform there work with productivity and sincerity. Such laws
consist of framework which has been prepared in order to enhance business activities by keeping
in mind mission and vision of an organization(Dalton-Brown, 2020). Ethics mainly deals over
providing rules and regulations which helps in achieving of goals and objectives in proper
manner. They are considered to be written statement that leads over performing various task in
appropriate way. Further its main focus is upon professional and ethical issues existing in a
business organization. Also it makes upliftment of values and moral within an organization
which increases smoothness in task performance of an organization. Then there main motive is
to make sure that behavioural pattern has been studied in effective manner. This makes decision
making effective by improving discipline within it. Important aspects regarding ethical code of
conduct has been given as follows:

 These rules and regulation helps an organization in preparing of concrete structure
through which ethical value is been developed in more efficient manner. It is mainly
based upon trustfulness, honesty and fairness.
 All the members in an organization is required to follow this code that helps in
developing of terms and condition which restricts unethical conduct of an organization. If
ethical rule is violated then strict action like termination or detention can be done to
balance it.
 Under various industries ethics is related over maintaining the cod of conduct within
department like banking and finance, specific laws that makes business done in more
effective way. This is not mandatory in nature but is been applied which makes
professional conduct to be done with more productiveness.
 Ethical executives holds responsibilities with opportunities that is part of there working
tenure as a leader. So it is expected that they should develop positivity which makes
professional conduct to be made through developing motivation within employees that
makes ethics followed by leaders (Chia and Oyeniran, 2020).
 Ethical executives makes acknowledgement over quality of work over there decisions
and omissions to themselves, their colleagues, their companies, and their communities.
This makes improvisation of various process in an organization.
Corporate Social responsibility
Corporate social responsibility is related to those practices which helps in making
international private business self-regulation developed with the aim of contributing towards
social goals related to welfare in society (Bowman and Cushing, 2016). This can be done
through ethically-oriented practices which makes employees connect itself with society. It is
wider concept which is mainly focused upon social duties of an organization. Some important
part of an organization has been given as follows:
 Corporal social responsibility is important for both consumer and companies.
 Leaders in an organization should conduct programs which gives valuable information to
various programs in relation to social aspect in an organization.
 This makes moral and values raised which makes employees boost positivity towards
developing new society.

Business ethics are that kinds of principal that makes development of various processes and
operations which helps organizing various processes in appropriate manner. It makes issues
recognized in relation to professional conduct and provide solution for them. CSR is related to
those issues that consist of social responsibility. Problems like discrimination, environmental
issues, bribery and insider trading in relation to social responsibility. Both the laws make
standard within an organization maintained that helps in making departments in an organization
to understand concept related to welfare of society.
Ethical position of the parent US Union Carbide company
It has been analysed from the above scenario that Bhopal gas tragedy is one of the most
deadliest incident which has taken place within history of world. This is related over code of
ethics conduct that has been violated and has made such dangerous accident to be caused that
took life of various people living in that city. In the case ethics has been violated which resulted
in causing leak of methyl isocyanate gas. Incident was so furious it took long time for people to
recover from its after affect. Ethics has been violated in relation to proceedings which took place
within US Federal court as under this proceedings only one part of the facts were studied which
made biasses to be formed towards giving relief to victims. Also in this CSR has not been
followed as containers were not taken into proper care which caused chemical reaction within the
plant. In this after the interference of Supreme Court of India that fair judgement was produced
in relation to both ethics and Corporate Social Responsibility (Boatright, 2017).
CONCLSUION
From the report it can be concluded that business laws and ethics both laws helps in
developing an organization from overall perspective in an organization to be developed through
making goals and objectives achieved in appropriate manner. The file is further based upon
Bhopal gas tragedy within which both ethics and CSR has not been followed in proper way. In
this ethics has been violated in relation to case proceedings and CSR violated in relation to
measures taken for minimizing impact of gas leak.

REFRENCES
Books and Journals
Boatright, J.R., 2017. Ethics and corporate governance: Justifying the role of shareholder. The
Blackwell guide to business ethics. pp.38-60.
Bowman, D. and Cushing, A., 2016. Ethics, law and communication. Kumar and Clark's
Clinical Medicine E-Book. p.701.
Chia, T. and Oyeniran, O.I., 2020. Human health versus human rights: An emerging ethical
dilemma arising from coronavirus disease pandemic. Ethics, Medicine and Public
Health. 14. p.100511.
Dalton-Brown, S., 2020. The ethics of medical AI and the physician-patient
relationship. Cambridge Quarterly of Healthcare Ethics. 29(1). pp.115-121.
Ethics Committee of the American Society for Reproductive Medicine, 2016. Cross-border
reproductive care: an Ethics Committee opinion. Fertility and sterility. 106(7). pp.1627-
1633.
Key, T.M., Azab, C. and Clark, T., 2019. Embedded ethics: How complex systems and
structures guide ethical outcomes. Business Horizons. 62(3). pp.327-336.
Khairuldin, W.M.K.F.W and et. al., 2019. Ethics of mufti in the declaration of fatwa according
to Islam. Journal of Legal, Ethical and Regulatory Issues. 22(5). pp.1-6.
Matthews, R., 2019. Health ethics and Indigenous ethnocide. Bioethics. 33(7). pp.827-834.
Rupniewski, M., 2019. Natural Law Ethics and the Issue of Legal Change. The Philosophy of
Legal Change, edited by Maciej Chmieliński and Michał Rupniewski, London and New
York: Routledge.
Wright, M.S., 2019. Dementia, healthcare decision making, and disability law. The Journal of
Law, Medicine & Ethics. 47(4_suppl). pp.25-33.