UNION CARBIDE BHOPAL Jackson Chao Andy Xu Alan

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

Half a million people were exposed to the gas and 25, 000 have died to date. More than 120, 000 people still suffer from ailments caused by the accident.

UNION CARBIDE BHOPAL

UNION CARBIDE BHOPAL • Stakeholders • Change • Ethical Issue • Alternatives • Recommendation • Recommendation

Stakeholde rs Change Ethical Issue Alternative s 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 Recommendati on

Stakeholde rs Change Ethical Issue Alternative s Recommendati on 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

Stakeholde rs Change Ethical Issue Alternative s Recommendati on 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

Stakeholde rs 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. Alternative s Recommendati on

Stakeholde rs Change Ethical Issue Alternative s Recommendati on Economic Change 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.

Stakeholde rs Change Ethical Issue Alternative s Recommendati on ECONOMIC Economic Change 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 long-term debt, which forced it to borrow $300 million in 1979.

Stakeholde rs Change Ethical Issue Alternative s Recommendati on ECONOMIC Economic Change CHANGE The Union Carbide factory in Bhopal • was proved to be a losing venture and ceased active production in the early 1980 s

Stakeholde rs Change Ethical Issue Alternative s Recommendati on ECONOMIC Economic Change 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

Tank Alarm s

Stakeholde rs Change Ethical Issue ENVIRONMENT Change • 1950: population 70, 000 • 1956: Becomes State Capital • 1984: population 695, 000 Alternative s Recommendati on

Stakeholde rs Change Ethical Issue Alternative s ETHICAL ISSUES BEFORE THE DISASTER Poor Maintenanc e Improper Safety Management Repressive style Management Recommendati on • The MIC tank alarms had not worked for 4 years • The flare tower and vent gas scrubber had been out of service for 5 months • To reduce energy costs, the refrigeration system was idle • January 1982: phosgene leak, 24 workers were exposed => protective mask • February 1982: MIC leak affected 18 workers • 1983 & 1984: Regular leaks of MIC, chlorine, and monomethylamine • Workers were forced to use English manuals, even though only a few understands the languange • 70% of the plant’s employees were fined for refusing to deviate from the proper safety regulation (replacing leaked pipes)

Stakeholde rs Change Ethical Issue Alternative s Recommendati on ETHICAL ISSUES AFTER THE DISASTER Withholdi Ongoing Environmen Health ng of tal Contaminat Informati Effects Damages ion on • • Short-term: As of 2008: UCC in had not Burning respiratory • 2, 000 bloated animal carcasses were released information about tract and eyes, breathlessness, • disposed Chemicals at the plant choking =>abandoned death the possible composition of continue to leak test andinpollute theand • UCC’s laboratory 1989: soil • water Long-term: Estimated between 100 the cloud gas samples collected from near the groundwater –Several 200 were thousands permanent toxic tosustain fish internal studies • • factory 2002: Inquiry found toxins including injuries (eye problems, respiratory • Polluting compounds include naphthol, mercury, lead, and severe trichlorobenzene in which exhibited difficulties, immune naphthalene and Sevinsystem nursing women’s were breast not milk contamination disorders made public

Stakeholde rs Change Ethical Issue Alternative s Recommendati on 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

Stakeholde rs Change Ethical Issue Alternative s Recommendati on 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

Stakeholde rs Change Ethical Issue Alternative s Recommendati on 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

Stakeholde rs Change Ethical Issue Alternative s Recommendati on 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

Stakeholde rs Change Ethical Issue Alternative s Recommendati on 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

Stakeholde rs Change Ethical Issue Alternative s Recommendati on 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

Stakeholde rs Change Ethical Issue Alternative s Recommendati on 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

Stakeholde rs Change Ethical Issue WHY DO WE MAKE THIS RECOMMENDATION? Alternative s Recommendati on • 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?