Bhopal, India and Union Carbide: The second tragedy
R. Clayton Trotter, Susan G. Day, Amy E. Love
Journal of Business Ethics · 1989 · Volume 8 · Issue 6
Abstract
The paper examines the legal, ethical, and public policy issues involved in the Union Carbide gas leak in India which caused the deaths of over 3000 people and injury to thousands of people. The paper begins with a historical perspective on the operating environment in Bhopal, the events surrounding the accident, then discusses an international situation audit examining internal strengths and weaknesses, and external opportunities and threats faced by Union Carbide at the time of the accident. There is a discussion of management of the various interests involved in international public relations and ethical issues. A review of the financial ratio analysis of the company prior and subsequent to the accident follows, then an examination of the second tragedy of Bhopal — the tragic failure of the international legal system to adequately and timely compensate victims of the accident.The paper concludes with recommendations towards public policy, as well as a call for congressional action regarding international safety of U.S. based multinational operations.
Keywords
Public Policy, Legal System, Operating Environment, Public Relation, Ratio Analysis
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