Reference no: EM133461608

Case Study: The Bhopal gas explosion disaster was a gas leak explosion accident that took place on the night of December 2, 1984 in Bhopal, Madhya Pradesh, India. It led to over 500,000 people who lived nearby in small towns and villages to be exposed to dangerous chemicals from the gas. There were over 2000 people that lost their lives that night and the following weeks and months saw over 8,000 deaths from gas-related diseases.

The majority owner of the factory was Union Carbide Corporation (UCC) which is an American chemical corporation that operated a pesticide plant in Indian. In 1989, the American company paid over $470 million as compensation with victims mainly ending up with $100-$400 for the loss of life or injuries suffered. In 2001, the company sold its business share capital in India and left the country.

The criminal cases filed in the United States against the company and its Chief Executive Officer Warren Anderson who was in charge at the time of the disaster were all dismissed by United States Courts and redirected some cases to Indian courts on multiple occasions to deal with the case between 1986 and 2012.

This case illustrates the challenges of holding accountable the powerful and rich Western owned companies that do business in poor and often corrupt countries to lower the costs in the supply chain and production. It also illustrates why many companies in Western world that make toxic and dangerous but profitable products choose to build plants in very poor countries

Questions:

1. What are some of the issues you can identify in this case?
2. Who is to blame for this industrial catastrophe?
3. Why was an American company doing business in India?
4. Why was the Indian government not hard American government?
5. What are the difficulties you think the Indian government faced to hold the company accountable while at the same time protect its own people?
6. Why do you think people affected felt let down by Indian government? When you complete the work- open the Blackboard and post the work and please do not upload any document but post the comment. You will not be able to see other students' comments until you post yours first.