Individual Report: Ethical Analysis of Bhopal Gas Tragedy Case Study

This individual report provides an in-depth analysis of the Bhopal gas tragedy, exploring the ethical considerations and business law aspects of the disaster. The report begins with an introduction to business law and ethics, emphasizing their importance in organizational success. It then presents a detailed case study of the Bhopal gas tragedy, including the causes of the disaster, the legal actions taken, and the ethical code of conduct. The report critically examines the ethical position of the parent company, Union Carbide, highlighting the company's unethical conduct in the aftermath of the tragedy. The analysis covers the legal proceedings in both the United States and India, including the initial court decisions and the final settlement. The report concludes by summarizing the key findings, emphasizing the role of business law and ethics in achieving organizational goals and objectives, especially in relation to the Bhopal disaster.

Assessment
(Individual Report)

INTRODUCTION
Business law and ethics are one of the most important laws that has been used within an
organization to make its goals and objectives to be achieved in proper manner. Business law
helps in making establishment of business organization possible with the help of legal
framework that has been given for it. These laws makes business organization to be work as per
the laws prescribe for them. In this business organization works upon its various processes in
more effective and efficient manner. Ethics are considered to be those rules and regulations that
has been formed within an organization to improve its discipline and order. Both the laws makes
working of an business organization improved. Scope of both the laws are wider as they helps in
improving business in faster and better manner. Nature is dynamic which makes organization to
achieve its objectives. This report is based upon Bhopal Gas tragedy and issue to be discussed is
related to ethical consideration of position that is hold by organization.
MAIN BODY
TASK ( Individual report)
Case study
Introduction to case:
This was one of the most tragic incident that happened in history. This is also named as
Bhopal gas tragedy and is related to industrial accident. According to the facts Carbide
subsidiary was making pesticides within the plant situated in the city of Bhopal. On 2-3
December 1984 there was a release of 40 tonnes of toxic methyl isocyanate gas. This caused
death of 500000 people. As the gas released caused panic situation within city and caused
irritation in lungs which lead to death of thousand persons on spot. After words it was the death
ratio analysed come around 8000 and after release of gas happened. This lead to formation of
International Medical Council in 1993 that did proper research upon the disaster (Fadeel, Farcal
and et. al. 2018).
Causes of disaster :
The disaster took place when Carbaryl was been made and workers were working within
factory in the year 1997. Amount of insecticide produced was over 25000 tonne per year. In this
capacity of 5000 tonne was only produced. So, the content produced was able to handled by
containers. Major cause of disaster was when reaction happened due to formation of carbon

oxide that lead over formation of Methyl isocyanate. This caused due to mixing of water within
the tank. It resulted into chemical reaction. Due to this temperature was increased to 200 Celsius.
The pressure was so much that even the stabilizers were not able to bear the whole. Also the
condition of pipe were not good they become rusty and old. The release was so fast that whole
city got filled with the toxic gas and resulted into sever conditions related to health occur. This
lead over making disaster at such level to be happened (Choi and et. al., 2018).
Legal action
Proceedings in relation to UCC was been performed in relation to United States and
Indian government. For this purpose Government of India passed Bhopal Gas Leak on march
1985 which legally allowed Indian government to be plaintiff on behalf of the victims of
disaster. Further the proceedings were initiated within federal court of United States. On April
17th , 1985 judge of court John F. Keenan said that fundamental human rights has been violated
within the disaster. In the Union carbide instruction is been given in relation to relief fund over
disaster that is $5 million and $10 million to all parties injured that has been distributing with the
help of International Red Cross. UCC has been given money over full settlement to plaintiffs but
this was rejected by Indian government. In March 1986 UCC proposed that 350 million offer that
was proposed by Indian government. Damage that has happened was approximately$500–600
million over 20 years. Further the litigation was transferred from U.S federal court to Indian
government. The an analysis was there on the order passed by U.S court in the year 1987. UCIL
has made septation within management to Indian citizens.
Also government of India has not accepted the offer and Union Carbide in which US$3.3
billion was to be paid to all victims. The trial was conducted again by Supreme Court of Indian
with fresh stake. In this result was that 1988 proceedings began upon settlement and initiated in
year 1989. Further an agreement was formed to pay US$470 million for making refund to be
imitated as refund upon the disaster. In this refund initiated on immediate basis of order that has
been passed by Supreme Court of India (Fisher and Boswell, 2017).
Supreme Court has ordered in the year 1990 and made appeal over making settlement
which stated that $470 million is to be paid by UCC as refund. According to the judgement
Indian government has to do the purchase over funds through insurance and insurance of 100000
has to be covered within it. The organization accepted the order by making funds and UCC

should make subsidiary to victims and amount of $17 million is given for the purpose. This was
the final settlement order pass in relation to disaster that has been passed.
Code of ethical conduct
Ethics are that kind of rules and regulations which makes professional conduct to be done
through making honest integration that has to be generated. As per this code of ethics is an
written document which makes identification of rules possible that makes development of
business environment possible (McCredie and Morey, 2019). These are those professional
conduct which helps in developing of professional conduct possible. In this value has been
uplifted through professionalism in making court proceeding to be done in effective manner
possible. It leads over making ethical code of framework to be generated in effective manner
which makes an organization to develop discipline and order within it. Further various important
part of ethics has been explained as follows:
 These rules within which an organization forms an ethical framework which makes
professional conduct to be done. This makes integrity and honesty to be covered within it.
 Members within a organization has to follow the ethical code and if violation is done then
rule of termination is to be applied.
 Different industries things has to be covered which makes banking through finance to be
done in specific manner by helping in government businesses formed. In this code is been
done upon voluntary adoption possible.
Ethics are considered to be that kind of rules and regulation which makes principal within
operations to be included over making proceedings to be followed. Problems has to be solved in
relation to ethical code of conduct. In this In this discrimination, environmental issues, bribery
with trading of social responsibility is also dealt in this( Schloss and et. al., 2017).
Ethical position of the parent US Union Carbide company
It has been observed that according to case study an incident happened in Bhopal and was
one of the most drastic disaster in the history of world. This was such an awful disaster which
made death of lot of people to be done. In this an organization named Union Carbide was having
involvement in disaster. This made observation to come over a point that code of ethics is not
been followed and also refund initiated was not as per ethical rule. From the situation it is to be

marked out that judicial authority of U.S favoured the organization ans passed the order on the
basis of facts presented by UCC. Only when the matter was shifted to Indian and Supreme Court
made judgement which was accepted by both parties and was nit biassed. So, the position of
organization is that they committed unethical conduct by offering such low price in relation to
fund.
CONCLSUION
From the discussion it can be find out that business law and ethics makes an organization
achieve goals and objectives in proper manner possible. In this tragedy of Bhopal gas disaster is
been discussed with facts and in relation to ethics.

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