UNION CARBIDE BHOPAL

Jackson Chao

Andy Xu

Alan Wang

Binardy Tjuatja

Emily Lin

Lee Groff

UNION CARBIDE BHOPAL

http://mapsof.net/bihar/static-maps/png/location-map-of-bhopal

• Stakeholders

• Change

• Ethical Issue

• Alternatives

• Recommendation

• Stakeholders

• Change

• Ethical Issue

• Alternatives

• Recommendation

UNION CARBIDE BHOPAL

Stakeholders Change Ethical Issue Alternatives Recommendation

The stakeholders:

• Union Carbide

• The victims of the gas attack (employees)

• The local government

• The members of community

• The CEO of the Union Carbide

• The Greenpeace Group

Before the Disaster :

• The Union Carbide: cut off costs, increase profits

• The victims of the gas attack: safe working conditions, equal pay

• The local government: ensure the safety of employees, prevent environmental damage

• The members of community: ensure the environment is clean

• The CEO of Union Carbide: to increase profits as much as possible

• The Greenpeace Group: to ensure the plant is not polluting the environment


After the Disaster :

• Union Carbide: to pay as little compensation as possible and escape all responsibility

• The victims of the gas attack: require fair compensation

• The local government: to ensure the victims get fair compensation and assign responsibilities for cleaning up the pollution caused by the plant

• The members of the community: help clean up the pollution

• The CEO of Union Carbide: escaping responsibility

• The Greenpeace Group: to make sure UCC cleans up the pollution


Economic Change• The recession of 1970-71 hammered commodities

companies like Union Carbide, with the chemicals and plastics markets entering another cycle of overcapacity.


Economic Change• From 1967 to 1973, production costs were cut by one-third to avoid the inefficiencies and

plummeting prices that had accompanied industry-wide overcapacity.

Economic Change


Economic Change

• Steadily rising expenses in Europe resulted in a $32 million loss in 1978.

• That same year, UCC was forced by its creditors to retire $292 million in long-term debt, which forced it to borrow $300 million in 1979.

5 Years later -- 1978 The company found itself increasingly strapped for cash.

Economic Change


Economic Change

• was proved to be a losing venture and ceased active production in the early 1980s

The Union Carbide factory in BhopalEconomic Change


Economic Change

• However, vast quantities of dangerous chemicals remained

• Three tanks continued to hold over 60 tons of methyl isocyanate(MIC)

• Cut-backs

The Union Carbide factory in Bhopal

Economic Change


• 1950: population 70,000

• 1956: Becomes State Capital

• 1984: population 695,000

ENVIRONMENT Change


Ethical Issues before the Disaster


Ethical Issues after the Disaster


Alternatives Before the Disaster

Alternative #1

• Try to increase the product sales

• Keep all production

Alternative #2

• Cease production and dispose all MIC chemical gas

• Safe for the local residents

• The cost of disposing the gas is large


Alternatives Before the Disaster

Alternative #3

• Cease production, keep MIC chemical, but continue to perform regular maintenance

• Does not cost too much

• Safe for local residents

Alternatives After the Disaster

Alternative #1

• Doing nothing

• The site continues to poison residents

• Injured people who can’t work and have no family left to take care of them can’t survive

Alternative #2

• Help the doctors treat gas-affected victims


Alternative #3

• Compensate the victims

• Increasing the compensation to help people survive

• Providing at least 20 years’ worth of medical expenses

Alternative #4

• Properly clean up the site and provide safe drinking water

• New generation will not be poisoned

Alternatives After the Disaster


RecommendationBefore the Disaster

Alternative 3 is recommended

Management should elect to cease active production on the plant but continue regular maintenance

Methyl Isocyanate or MIC is a highly reactive and deadly gas that remained in the tanks after production was cut off

Allowing the safety system to fall into disrepair leaves the door open for a potential disaster


Why?

• There is no market in India for Union Carbide’s pesticides

• Therefore, it follows that the plant should cease operations

• With the safety of Indian citizens at mind, regular maintenance should continue to prevent any disasters


RecommendationFollowing the Disaster

• A combination of alternative 3 and alternative 4

• Victims need to be better compensated

• They have endured much suffering and deserve better treatment than they have received to date

• Provide compensation for at least 20 years worth of medical expenses, as oppose to the 5 years originally offered.

• Key Component of new Compensation Settlement: consultation with the victims

• Victims should have a say in compensation levels as they were the ones who have suffered


Recommendation #2Following the Disaster

• Fully clean up the Union Carbide site

• Chemicals left behind by Union Carbide continue to cause environmental damage and poison a new generation

• Enough suffering has occurred in India and the upcoming generation should not be exposed to the deadly chemicals

• Also, it needs to be made certain that the soil and water near the plant are not contaminated with chemicals


Why do we make this recommendation?

• Utilitarian Theory

• Compensating the Bhopal victims with 20+ years worth of medical expenses is the best solution as it provides the greatest amount good for the greatest number of people

• Although an expensive alternative for Union Carbide, compensating victims to the greatest extent possible shows victims there is genuine concern for them

• Deontological Theory

• The action of providing better compensation for the victims is a morally responsible action


QUESTIONS?

THE END

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UNION CARBIDE BHOPAL