Legal Aspects and Ethical Code of Conduct: A Case Study on Bhopal Gas Tragedy

This report discusses the legal aspects and ethical code of conduct in relation to the Bhopal gas tragedy case study. It explores the causes of the disaster, the legal actions taken, and the ethical position of the parent company, US Union Carbide. The report also highlights the importance of following ethical codes in organizations.

Report

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

INTRODUCTION
Legal aspects are that kind of aspects which is been used for providing legality towards
laws that is applied under particular situation. Legal aspect covers all the laws within it that is
related to various conditions within society. These aspects includes laws such as which makes
disciplined and order to be maintained. Legal aspect can be linked with ethical code of conduct
in a way that it makes proper procedure followed in an organization in relation to laws that is
been applied within them. Ethics are those kinds of rules and regulations that make development
of proper regulation in an organization possible. It also helps courts in conducting proceedings in
appropriate manner possible. It has wider scope in relation to legal aspect as it makes
environment of professionalism to be maintained. Nature is also dynamic which makes law as an
important medium in society applied. The report based upon case study that is in relation to
Bhopal gas disaster. Questions has to be answered ethics.
TASK ( Individual report)
Case study
Introduction to case: The case is known as Bhopal gas tragedy which is related to industrial
accident. It is considered to be drastic incident that has happened in the history of world and in
this Carbide subsidiary makes pesticides plant in city of Bhopal, India. 2-3 December 1984 plant
making pesticide released 40 tonnes of toxic methyl isocyanate gas. In this around 500000
people died after coming in contact of toxic gas. Gas spread at very fast rate all over the city in
no time that resulted in making panic situation to arise. Also burning sensation in lungs was felt
which lead over thousands of person to die on spot and damage was done around 1989. This is
said to cover 8000 deaths after gas release (Katner, Brown and Fournier, 2016). In order to deal
with this International Medical Council has been formed in the year 1993 and over incident with
health effects of disaster.
Causes of disaster : Plant disaster that has taken place were producers of Carbaryl since the year
1997. It is an insecticides that is been produced 25000 tonnes per year. The plant hold capacity
of 5000 tonnes so it was not a big issue. The sales of insecticides were not going in appropriate
way in the year 1980. This made cost cutting within plant. As disaster happened within tank to
store material that is Methyl isocyanate. In this disaster chemical reaction happened due to
carbon dioxide mixing upon various substances. Temperature got increased within the container

and reached 200 Celsius. Pressure in container increased beyond the limit which was not even
handled by stabilizers also. The condition of the tank was also not good condition as pipe
become rusty. All the gas formed within the container released within two hours and due to bad
condition of tank also the leakage was not stopped. Such condition made disaster to happen at
such big level.
Legal action
Proceedings started and included UCC in relation to collaboration of United States and
Indian government has been formed. In this local Bhopal authorities is been involved within it.
India government passed the act of Bhopal Gas Leak on march 1985 that gave legal authority to
Indian government for victims disaster. As per the proceeding law suit is been initiated in federal
court of United States. The on April 17th 1985, Federal District court judge John F. Keenan said
that fundamental human rights has been violated within the disaster. Union carbide was ordered
to pay $5 million and $10 million to all parties injured that has been distributing with the help of
International Red Cross. UCC has given money in order to make full settlement over figures
through plaintiffs but Indian government rejected the order. Further on March 1986 UCC
proposed figures by making plaintiff. U.S attorney of $350 million which would have been made
according to organization of an company. The code of conduct is very unethical on part of
Bhopal Victims as the estimated damage is over $500–600 million over 20 years. In this ligation
is been transferred from United States to India after permission was given to U.S District Court.
In the following appeal upon decision U.S Court the transfer is been done in the year 1987.
UCIL is an separate entity and managing Indian citizens (Díaz and et. al., 2020).
Government of India has been refusing offer that is been made by Union Carbide and
made claim of US$3.3 billion as per the guidance of court. As per this Supreme Court has been
making trial over again by making clean slate over the order issued by it. So, in November 1988
proceeding began again and court settlement is been initiated in the year 1989. The union
Carbide made agreement upon 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 makes appeal in order to get settlement. So, on
October 1991 Supreme Court has made it cleat that $470 million is to be paid and then dismissed
the petition. Further court order Indian government to make purchase upon settlement funds vis
insurance that is going to cover 100000 persons in order to deal upon symptoms caused. In order
to make settlement funds and UCC has been requested by court for making subsidiary upon
Voluntary funds generated in order to treat the victims of disaster. The amount was $17 million
to which the organization agreed.
Code of ethical conduct
Ethical code of conduct is relate over principals which makes professional conduct that
has to be made through making honest intergeneration to be generated. Under such codes of
ethics there is written statement that is in relation to mission value within business organization
through development possible. In this professional approach is to be used through making
developing possible. As per ethical code of conduct there is increase in values within
professional code of conduct within an organization. This is known as ethical code and is in
relation to business order in ethical framework that is helpful for making professionalism to be
maintained within an organization (Bird, 2016). Further various important part of ethics has been
explained as follows:
 Such rules and regulation makes an organization through ethical framework by making
professional conduct possible. In this integrity and honesty is covered through
professionalism.
 Members within a organization has to follow the ethical code and if violation is done then
rule of termination is to be applied.
 Under different industries various things is been included by making banking with
finance to be specified by helping in governing of business that has been formed. Though
code of is not an conduct of voluntary adoption.
Business ethics is been making covering of the principals by including various operations
run within business. Lot of problems is been solved by making an organization upon issues
relating to employer and employee. In this issues like discrimination, environmental issues,

bribery and insider trading with social responsibility is been solved. Law makes setting of basis
rule and regulation which help in making leadership to be developed.
Ethical position of the parent US Union Carbide company
According to such analysis that is been done made observed that Bhopal gas tragedy is
one of the most negative disaster happened within India and resulted into death by making
drastic impact over people and there life over long-time. In the case parent organization US
Union Carbide is substitute organization of UCIL and was involved in the disaster. It did not
followed ethical code of conduct and money given by an organization at first on the order of US
court was not appropriate and also order passed by it was against ethical code of conduct. After
this Supreme Court makes order to be passed which state that $470 million is to be given as
compensation is well balanced order in relation to recover loss happened due to disaster
(Argyrou and et. al., 2016).
CONCLSUION
From the above discussion it has been concluded that legal aspect are those aspects which
cover important element required by an organization to be identified through laws. As per this
ethics is been discussed in relation to case study of Bhopal gas tragedy. Ethical code of conduct
has been shown upon organization involved within the disaster. Ethical issues is discussed in
relation to code of conduct to be followed in an organization.

REFRENCES
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