Business Law and Ethics Module: Bhopal Gas Tragedy Report Analysis

This individual report delves into the Bhopal gas tragedy, examining the causes of the disaster, the legal actions taken, and the ethical conduct of the involved parties, particularly the parent company, Union Carbide. The report begins with an introduction to the case study, detailing the events of the gas leak and its devastating consequences. It then explores the causes of the disaster, focusing on the entry of water into the tank containing methyl isocyanate. The report further analyzes the legal proceedings, including the lawsuits filed by the Indian government and the settlements reached. It also addresses the code of ethical conduct and the ethical position of Union Carbide, highlighting the company's responsibilities and actions. The conclusion summarizes the key findings and emphasizes the importance of ethical considerations in business, especially in relation to environmental and safety regulations. The report references books and journals to support its analysis.

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 an
structural framework to business firm in order to establish systematic approach for meeting
requirements of clients (Ramanathan, 2019). In relation to current report, Bhopal Gas tragedy
will be focused. This include discussion about ethical consideration in context of the position
hold by organization.
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 (Jayanthi, 2018). This was on 2-3 December 1984, 40
tonnes of toxic methyl isocyanate gas which resulted into causing death of 500000 people. 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
tonne. Here, company was working to full fill an order of 2500 tone (Mittal, 2016). This make it
clear that there is no issue with overload work and production. This is also identified that, sales
of business firm as not going well from the year 1980. 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 (Raza and Singh,
2017). 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 (Bisarya and Puri, 2005). 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, the
entire tank will get empty in 2 hours and released gas in environment. This toxic gas leads to
death of more than 8000 individuals on single day.
Legal action
Legal action is must in this case. In order to begin this, legal proceeding in relation to
UCC were stated in collaboration of Indian government and Unite States. In February, 1985
Indian government filed 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 empower 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 (Saxena, 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 (Gupta, 2002). 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 are 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 (Sinha and Neeraj Jha, 2020).
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 (Sriramachari, 2004). 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 order Indian government for making purchase. This is in context
of settlement of funds through insurance. This include 100000 persons. The order was accepted
by the company by making finds and UCC is requested by court by making subsidiary over
Voluntary funds by making treating of victims and amount of $17 million is 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 (Edelson, Senk and Stock, 2018). 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 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. 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
In the analysis of case study of Bhopal gas tragedy which is one of the most heart
wrenching disaster that happened within 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. The tragedy of Bhopal gas leak set an
example of different other ethical consideration violated in relation to court and its proceedings.
Ethical issue that has been formed is in relation to the order passed by court.

REFERENCES
Books and journal
Island, T., 2020. A Toxic Hotspot on the River Periyar in Kerala: Corporate Crimes in God's
Own Country. Water Conflicts in India: A Million Revolts in the Making.
Jayanthi, K., 2018. On the Ecological Footprint: Media and Environment. A Handbook of
Journalism: Media in the Information Age.
Raza, G. and Singh, S., 2017. Current status of public understanding of science: Results of
Kumbh Mela survey studies. In Bridging the Communication Gap in Science and
Technology (pp. 133-145). Springer, Singapore.
Saxena, A., 2019. Ethics in science: Pedagogic issues and concerns. Springer Nature.
Singh and et. al., 2018. Integrated Sensors for Risk Assessment in Industries and Residential
Sectors: A Review. In Intelligent Communication, Control and Devices (pp. 411-417).
Springer, Singapore.
Sinha, A.K. and Neeraj Jha, K., 2020. Environmental laws and their compliance in road
projects. Journal of Legal Affairs and Dispute Resolution in Engineering and
Construction, 12(1), p.04519050.
Sriramachari, S., 2004. The Bhopal gas tragedy: An environmental disaster. Current
Science, 86(7), pp.905-920.
Gupta, J.P., 2002. The Bhopal gas tragedy: could it have happened in a developed
country?. Journal of Loss Prevention in the process Industries, 15(1), pp.1-4.
Bisarya, R.K. and Puri, S., 2005. The Bhopal gas tragedy—a perspective. Journal of Loss
Prevention in the Process Industries, 18(4-6), pp.209-212.
Mittal, A., 2016. Retrospection of Bhopal gas tragedy. Toxicological & Environmental
Chemistry, 98(9), pp.1079-1083.
Sharma, D., 2016. A Tale of Two Tragedies: Bhopal Gas Leak in India and BP Oil Spill in
US. Indian Institute of Management Ahmedabad.
Ramanathan, U., 2019. The Bhopal case: retrospect and prospect. In Research Handbook on Law,
Environment and the Global South. Edward Elgar Publishing.