Articel - Ethics Case
Bhopal - Union Carbide
1. What are the ethical issues raised by this case?
Answer :
Union Carbide Corporation inadequite an estimate $200nmillion on compensation for the deaths of 200 people and the injuries of 200.000 other because poisonous leak of methyl isocyanate gas from a Union Carbide pesticide plant and company's managers had failed to warn them at the Indian plant because they had suffered losses.
Answer :
Union Carbide Corporation inadequite an estimate $200nmillion on compensation for the deaths of 200 people and the injuries of 200.000 other because poisonous leak of methyl isocyanate gas from a Union Carbide pesticide plant and company's managers had failed to warn them at the Indian plant because they had suffered losses.
2. Did the legal doctrine of "limited liability" apply to protect the shareholders of Union Carbide Corporation (U.S.)?
Answer :
Shareholders of Union Carbide weren't fully protected by the legal doctrine of limited liability. They weren't liable for the deaths and injuries that occured due to the leak. But they weren't covered for their personal investment in the shares of corp. Stock fell drastically after the incident and shareholders claim to have lost more than $1 billion.
Answer :
Shareholders of Union Carbide weren't fully protected by the legal doctrine of limited liability. They weren't liable for the deaths and injuries that occured due to the leak. But they weren't covered for their personal investment in the shares of corp. Stock fell drastically after the incident and shareholders claim to have lost more than $1 billion.
3. Where the Indian operations, which
were being overseen by the managers of Union Carbide Corporation (U.S.),
in compliance with legal or moral or ethical standards?
Answer :
No, because before the tragedy, the Indian subsidiary had been doing poorly, in an effort to containing $4 million from the unprofitable plant, local company managers had initiated several cos-cutting programs. Only a year before the number of equipment operators on each shift had been reduced from twelve to five. Morale dropped and many of the best operators quit and were replaced with workers whose education was below required by company manuals.
Answer :
No, because before the tragedy, the Indian subsidiary had been doing poorly, in an effort to containing $4 million from the unprofitable plant, local company managers had initiated several cos-cutting programs. Only a year before the number of equipment operators on each shift had been reduced from twelve to five. Morale dropped and many of the best operators quit and were replaced with workers whose education was below required by company manuals.
