UNION CARBIDE BHOPAL

Jackson Chao
Andy Xu
Alan Wang
Binardy Tjuatja
Emily Lin
Lee Groff

UNION CARBIDE BHOPAL

Stakeholders

Stakeholders

Change

Change

Ethical Issue

Ethical Issue

Alternatives

Alternatives

Recommendation

Recommendation

Stakeholders

Change

Ethical Issue

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

Alternatives

Recommendation

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

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

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

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

Stakeholders

Change

Ethical Issue

Economic Change

The recession of 1970-71 hammered commodities

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

Alternatives

Recommendation

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

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.

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

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

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 longterm debt, which forced it to borrow
$300 million in 1979.

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

Economic Change

The Union Carbide factory in Bhopal

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

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

Economic Change
The Union Carbide factory in Bhopal
However, vast quantities of
dangerous chemicals remained
Three tanks continued to hold over
60 tons of methyl isocyanate(MIC)
Cut-backs

Stakeholders

Change

Ethical Issue

ENVIRONMENT Change
1950: population 70,000
1956: Becomes State Capital
1984: population 695,000

Alternatives

Recommendation

Stakeholders

Change

Ethical Issue

Ethical Issues before the Disaster

Alternatives

Recommendation

Stakeholders

Change

Ethical Issue

Ethical Issues after the Disaster

Alternatives

Recommendation

Stakeholders

Change

Ethical Issue

Alternatives

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

Recommendation

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

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

Alternatives
After the Disaster
Alternative #1
Doing nothing
The site continues to poison residents
Injured people who cant work and have no family left to take
care of them cant survive
Alternative #2
Help the doctors treat gas-affected victims

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

Alternatives
After the Disaster
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

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

Recommendation
Before 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

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

Why?
There is no market in India for Union Carbides 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

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

Recommendation
Following 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

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

Recommendation #2
Following 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

Stakeholders

Change

Ethical Issue

Alternatives

Recommendation

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

THE END
QUESTIONS?