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8/8/2019 BHOPAL Case Group13
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BHOPAL 2.0 (A Case Study of Liability of Global operation?)
Group 13
Argoud FlorianDebasish DasLefresne Antoine
Sevestre Benjamin
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* Data collected from a govt. published report
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December 2/3, 19843
How events on the night of December 2/3 unfolded, as
explained by Puna Bai:
... All of a sudden [my husband] started coughing and
in the meantime he heard screams coming from outside.
As soon as my husband opened the door all we could see
was smoke entering our house. Then everyone in my
family started coughing and my kids started complaining
of their eyes burning. Then we heard someone saying
that we should all run because some gas pipe has
exploded in the Union Carbide factory. We all started
running and eventually I got separated from my family. I
just remember not being able to locate my family and
then after that I had lost consciousness.
From Clouds of Injustice: Bhopal Disaster 20 years on,
Amnesty International
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At around 11:30 p.m. a worker smells a gas leak At 12:20 a.m. a supervisor notifies the plant superintendent
12:45 a.m. operations suspended
1 a.m., a plant operator turns on toxic gas alarm
1:20 a.m., police control room notified that large number of
people fleeing area around factory
Additional District Magistrate of Bhopal contacts plant manager
at his home, claims he is unaware of any leak and suggests
washing eyes with water
Contd..
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By morning, 500,000 people have been exposed
Hospitals are full
Dead bodies are piling up on roadsides
In Danbury, Connecticut, Union Carbide
officials learn of the disaster:
By 6:00 a.m. in the U.S., executives were
gathering as casualty estimates quickly
climbed, the matter was soon recognized as a
massive industrial disaster.
From Union Carbide: Disaster at Bhopal, UCC
By December 4, still no information has been
released about the toxicity of methyl
isocyanate, nor about its known antidotes
Contd..
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3800 people killed within days20,000 died slowly
120,000 still suffering (15-20 die each month)
1000 animals killed and 7000 injured
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What Caused the BhopalDisaster?
Water leaking into a tank of MIC
Worker error Market demand miscalculations
Plant design decisions
Carbides Cost-cutting strategies
Reductions in numbers of employees
Hiring of less skilled workers
Poor maintenance of safety equipment
Absence of emergency response plan
India's need for higher agricultural yields
The Green Revolution Inappropriate technology in a developing
country
Globalization
Due to operation
Due to Country
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* Data collected from a govt. published report
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The Bhopal Movement, 1989-1999 February 1989 GOI and Union Carbide strike a settlement. The
compensation amount is brought down to $470 million from $3.3 billion. UCCscriminal charges dropped reinstated in 1991.
April 1992 After ignoring four court summonses, Anderson declared a
fugitive from law. November 1994 Supreme Court of India allows Union Carbide to sell off its
encumbered assets to fund a hospital.
August 1999 Union Carbide announces forthcoming merger withDowChemical Company.
November 1999 Greenpeace reports on tests of soil, groundwater and wells in andaround the Union Carbide factory. 12 volatile organic chemicals and mercury inquantities up to six million times higher than expected are found.
9
* Data collected from a govt. published report
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The B
hopal Movement, 2000-2006 November 1999 Several victims of Bhopal disaster file class action suit against
Union Carbide and its former CEO, Warren Anderson, in federal court in New York,charging Carbide with violating internationalhuman rights law, environmental law, andinternational criminal law.
February 2001 Merger occurs.Dow inherits assets and liabilities of Union Carbide.
2001 International Coalition for Justice in Bhopal becomes International Campaignfor Justice in Bhopal (ICJB)
July 19, 2002 Launch of 28-dayhunger strike in Delhi by representatives of survivorsorganization and global relayhunger strike due to proposal to lower charges againstWarren Anderson.
August 27, 2002 The world tour of Exposure begins at the World Summit forSustainable Development (WSSD) in Johannesburg before moving on to Zurich,Switzerland, Venice and Kassel, Germany. It is also scheduled to be shown in
Argentina, Israel, China, Philippines, New Zealand, the Netherlands and the UnitedStates.
10
* Data collected from a govt. published report
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* Data collected from a govt. published report
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* Data collected from a govt. published report
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The Asymmetry
Country:- Need for industrialization
- Political pressure
- Economy improvement
- Relationship maintenance
Law:- Highly dis-integrated
- Time taking
- Difference in judgment
- Biasness for local group
People:
- Very low power- The sufferer are the poor
-A very small group
Company:
- Location of decision makers- The corporate policy
- Pressure from shareholders
Globalization
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Lose-Lose Situation for Government
Government
Citizen:
-Unable to compensate
the sufferer
- Failed to give justice
- Failed to remediate the
site completely
- Failed to install a strong
medication base
Economy growth:
-Slower
industrialization
- Bad terms with other
country
- Increasing supplydemand gap
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Stakeholder analysis
Stake holder Facts and motivations Status
UCC
(Union CarbideCorporation)
-Settlement of $470 million payed in 1989 to the victims. Deflect and then agree to follow
Investor - Bad for the reputation of the company Resist
Dow chemicalcompany
- Never owned or operated the Bhopal plant site- Never inherit any liabilities ofUnion Carbide-DOW bears no responsibility for a mess it did not make-Would affect DOWs profitability
Deny & resist
Indian state of MadhyaPradesh
-Assumed all responsibility for completing any furtherremediation
Agree to follow
India SupremeCourt
-Affirmed the $470 million settlement is just, equitableand reasonable.
Resist
Activistorganizations -want a justice
Agree to follow
population -Anger of the population
- IITs refuse to allow DOW to recruit on their campus
Agree to follow
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Risk Management for
Type of risk What is it?How canDOW mitigate
it?
Financial
-$22 million deposit requested byIndias Ministry ofChemicals &fertilizers to cover the cleanup pending
in the area.
- Try to find other solutions& do some intensive
diplomacy efforts.
Reputation-Create a bad image-All the population against DOW.
-Solve this BHOPAL issueas early as possible.- Clean up BHOPAL
Futuredevelopment
- Could affect DOWs management &future growth in India (India has ahuge market potential , so investmentcould be affected)
- Comforting this investors.
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Strategic options for and consequences
Either stay
Or leave
And clean up
And does notclean up
And clean up
And does notclean up
Population Financial ReputationFuture
developement
+++ -- ++ ++
--- + --- +
+++ --- ++ --
--- - -- --
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Managing the crisis : 6 steps
Avoiding the crisis Fail
Preparing to managethe crisis
Fail
Recognizing the crisis Fail
Containing the crisis Actual step
Resolving the crisis Opportunity
Profiting from thecrisis
Opportunity
They are not aware of thecrisisPolitic of blind eyes Bhopal incident closed bythe 1st settlement
They are wondering aboutthe issues and the
consequences
They still have anopportunity to solve thisproblem and developtheir activities in Indiawhich has a hugepotential
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Who is to compensate?
Government DOWUCC
-The real owner
of the site- Inherent
responsibility for
citizens
- Inadequate
decision of
supreme court
-Compensated as
ordered
- Did all that it can
do
- No longer exist
now
- Non- availability
of decision makers
-Current owner of
the company
- No liability during
acquisition
- Limitedly liable
- 12 bn : a small
amount for the
company
Law: 1.Polluter will pay2. Current owner has obligation 3. Non existence ofUNnorm for business 4. Final judgment already declared by the supreme court
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26 Years After: The Agenda Today
SIX DEMANDS
The setting up of a National Commission on Bhopalto oversee medical and social rehabilitation
Supply of safe water to communities currentlydrinking poisoned water
Speedy prosecution of the accused, including UnionCarbide Corporation and its former chairman
Environmental remediation
Curbing Dow and Carbide's business in India; and Memorializing the disaster by including it in school
and college curricula and building a BhopalMemorial in consultation with survivors.
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26 Years After: Reflections
The agenda has never really changed
The make-up and strategies of the movement are whathave changed
The movementhas a global reach yet the agenda is determined at the local
level Domestic strategy targeting state and Union governments and courts U.S. strategy targeting Dow in criminal lawsuits
International strategy connecting Bhopal to cases of toxic injustices resulting fromoperations of multinational corporations (Bhopal: The Real Face of Globalization)
Funding from international sources
Strong involvement and commitment at the local level
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THANK YOU