Please read the Bhopal case study. It concerns a multinational company and its local subsidiary and refers to one of the worst industrial accidents in history. The case covers a lot of foundational material we have reviewed in class i.e. FDI, differences in laws, evaluation of factors of production by the multinational to locate their foreign unit, etc Once you have read the case I would like you address the following questions in some detail but I don't need a thesis Bullet points with appropriate level of support are fine don't just answer yes, no, maybe 1. Why did the multinational pick India? 2. How did they implement their local operation i.e partnership, FDI, etc. and why that mode? 3. Why did they choose Bhopal as their final site? 4. What happened? 5. Who is to blame (this needs to reflect your opinion so I would like some justification for your answer) 6. How could this have been avoided? 7. What are some of the Cultural and Ethical issues raised? A maximum of 2 pages is all I need and if you can do it in less that's fine as long as your points are concise, have some element of support/logic and clearly express your view/opinion. Please be prepared to discuss the case in class taking into account everything we have covered so far on Globalization, Legal Systems, Cultural and Ethics issues Bhopal Plant Disaster-Situation Summary MJ eMh220 Duing thenight f 2a0cember 184 aea of some 40 to ofmathyl cyaneMC gs med with ninon her gsses foma chemica plant owned and sperated by UnienCaide nd Lned a patyouned wbidary of the US-based Union Cartide Coporation caused one of the highestcauaty industal acoders o the 20h century Aeast 2000pe ded nmetaly and another 200,000 t enical of aawadsceay atrble e g k cotaniaton in he neaty seements nay tave mupe sources he contamiation of the plant ste omay ans of general production acivity nda's Economic Anbitions When inda ataired independence ton Oreat Brain in 1947,s new ptical leaders waled to mae the couy weer by encouraging deveiopnent oft modem industry thad rong suppot tom the c whe genealy ageed ut nda'st k of ndion andnc devet we he of these coloniea poices Thua,the new govenment coud eped widespread support for any goky that appeed to set the conty an the pa tendu on Thesee poial elle ogtto a seef belels bout enm poley hat soughta middle way beteen te heavy ce n pivte nps th had characteried Brt industraaton in te 1and 19cures and the relance on c ngf the whole economy haracerdc of the Sevier Unien's inusiscton e ine 17. The combnaton of wetre ate and mied ecnemy deveiped by ndan leaders was very sm to Westem European ides of he peried ndan polcs eaders l trWeem Eupean capats, beled hapnate aps wee o foosed on proftabity af the fim to undertke he econonic eorganizaion needed for asauring broad based prospety and in primarly agricutural courtries e Inda the transfomations needed to introduce Tw be D s Sd DEE Pase Uly nhp ton te Scountan ndt y n o th te on Snce Fano Mmn o te DEESE an n und mm Snandg A e cse Pt Case Sunmary mode industy Both beleved that only amiedeconomy, in which state-red entprises operated the mar sectors of the economy and grivate entergrise gided ty consideratie gevemment mgton grotect warkers and the general gubic, wouid suessuly mee the econonic halerges tacing the country In inda steelmaking ayn shipping aviation and electrical power generation were the most prominent industres dominated by state-owned ims thenascent indian cthemcal industry was a mis of souned and prate m n is Resolution on ndua Palcy in 194 ndan gvenment espressed asong pr Indan enterprise but indcated wingness to alow some colboration with toign fims for whie E should be reagiced that paricipation offonign.captal and enterpse particalaly a as industi techique and kowedge, wil te di value to the pit industralizaton f the unty, tis ecessry hathe condiions under which they may pertiopte in indan ndusty should be caretuly aed in the national iterst Suabe legisation wll be roduced tor ths The folow-up leglaton induded ints on torwign shareholding in Indan fms, so that muntonas coud own 100% of her ndan sbidares but had to shaownershi wh ndan naonals ao preted colaboton only hen the foregnes ouned technology not avalae in inda The govemment hoped to temine the ms on whch indiane oould acquire echnology by law but eaty petrence tor inporing t the bwest coef and net paying leene fee n mored techrology formaetn Sye t pcon lass 20) had to bemodted in the tce of reig compaes uinges t edehdn fs d or pa on thoe t Thu the ndangoeent bak on a system of quiring that subedaries of egn fms be paowned by Indian nationals tht the ndans be aned al pects of fm opeatons and techreloges tht any business operalon using foign ecnlogy be lcsd by the e and that he oweme spcaly pre he to and duion of employment of toreigners hired as managers, echnical specialis or workers The Comeany and the City Union Catide ndia unted (UCL) operee n hda even before independence.prmarly as a maer and seler of dry cell baties under the Eveready tademak abousec in the USA by Union Catide coton Inde had sufered serious tod shortages in the eatymd 10s becaune of doug ne the edng a growng popuon and incresing the supply of localy prown coton tor he growng tee indsty When UCLsed ts Agicutura Products Dvison in the m-6 he lagest concereaton of Indan dhenical pans was bcaed nChembur near Bonbay Manbalanaeacaled'es chanber by sdts because of the eanve r poton Thee was vely e duaty inthopa but bot etigvenet andhee govemed shs P anis bbring y o te e c grodus RAD tr ret wiha twntee gnpesd hecalpt on a nonly tr menten ggva 198 ad 7, ten poon of Madrya Prde Boas t gon da gt endng utye ne s p htndaing ty loet ster pele at wan an uneped nd tteemro heThe meng s y ninda y sheb n wed or h e eh py n a They y d th nd sp horeshe cy nret oas antay ch rel spled y n 180 cy nd w WenCodte n w 3000ce porkore of te. ous fothe cate Od andaaway r Ae ads tan ydhe n The tos nhe l e out gods h h d e sbahes beceves s yhe p y m te Mya nt s om te y we dvd n 110800and 2-M gvennet adpecae e devres and ga a y L ht ben fomunged an r at t s nd r 95 gvemet r 5300st SEVsay n n ny nyh iny17 The he re tet e n yn Ag 134 ith the pn ch penoe Ca Suy wn tnes teC y a ti oundpny q a T da tat a te paryip's d a an hey y ped h anathe setes coult not te noad anda d ufeed bon parre pn d gu te st er te e he sticat n Thouhy sor sa tety a The Ecoonic Shuation of the Cenial Pant The UC p du a derice my as wtand ekis an d kar ndangve.an ta h heplat mo bypaUCL al n ahe ne o po C oun Cnatay hd versf he aqat te w he pa p ptol to C p 1 Aern n ss in 181, Uner Ca cyeawl CLat mt hehy pe e heer gamentwic the impots The efecyee t tg he proc e 1M2 ee of he metynynnwongn Cand Ca et w e d temet al ndtsow n ca nde di E y oder sEvra t tt t UCL and Usan Cartin 16 een 814 UL C and 15 d upnty e The Gon Lek AUCLandCnd t de etyd pnda Te a eu ndt unt wa dUnnC W 2 uthp a d heybap g y nys Looaco vus sd ay tc us is eyw gogto In he ty to ad o eUi Cadeonmended 3 speson.and we h t n wokes Oter ate plat w ced by dun Ltoranage nceer 11, and he wortre wer ddinat g y the ta of 64 p apon w fost onang up ng cka of chenical repa aofthe ptOb e g of heaand eyn mo62 ors of myl cyanich w the d Abou 22 T 1 and the t in tan 13 Pas to dra of the MC ane tan ta time and s te EvN ww. dnge On Ober 3ngbkeot tsof op th P Meister india Gandh bn a by sone her Sie bous achete tyCty ahoinpod a cue or v ks The ng st works nand aut of the plant ind civty tor muh of Nonbe Prducon w ap by by inby to p Ta0b o s dng fom Ta 11 nd and td wng of 2 evter the ond sgevi o o u pertrma peda s in the MC rage aato cntrol comion As his opeion bege abot 930pm mt f the ytemsthe pant we d ping o The nt br, dg ay uh te vt with caic d won andy and apend dy brap Te h d ge d yto ar leak t ha ben sht down a few weels sarler tr repacenent f a amded peand all reler eshe patwee dredy conneedhe pas vet sante The retrgeron sysen designe to kp MC stage anks co ha been tuned vemrth belon and the eo dr or e he plart The frewter spraying systems desigred s dea w res co down ovehed eqpment ar pride sppenentary woter netionof sses was opetional bat the sry co aeach he tp f the fae stak The hgh-pessure escape vahe whch wou elee presu inde excreded 4s and sht sto te vetor he frwton te genely acceped ascoust of eves te waing opeors paeded rspe ae p bind o the ps te make sur that water de net back up o strage tas andheat one of teeder vaes at the boto of the pipes wtere wash water shouid hae cone ad wre teke The worker doing the washing notced this and susgended washing to mpoe prblem meie sger an operions spervir rather than a manence superiso tolto cont The ckage caed water to back up This was nat dected and waing cotuet ater the tsi comes on at 10 30-1045 pm Water han began etering Tank 610 by passing tough a nmlyopen pressuraton vae and then though a paty pen soaon ave that hu hve ben ose er he a dra of MC but was nat because of ether human enar ar mechanical tre By 11 pm the cots pessu indicar for Tank 0ead 25 p,g fom 2 ps eaer i the evening Hower his was wihn nom fucuions s dienot use aam er ewas est ied by the se of ges 11.30 A w fond and awray k Woten ded onand wh do during their mguier 1130pm t b P ntined i CSy A te coreon oper ot the tars te doute-eck he gg h valve pop, heard lings from the andergeound ks and erough the conoven te tmed oecoo oe the sc s butte c sa ted o Ag de ga hev k1240 etsv e roemand he m es sounded Hewee, the sres adibe outide the pet w h f a e mines Etots to dce the dange by tandeng liqud MC e ancher a ed be he nt enpty as perio iny tee Eotoe te cpn p whw led bece e pay c et ach the pf the k Tha g d l o2 hours The anount of gs ecping uuly put ton Rdsey e ge L m ste nduced panc and peple began to The thopal polos we porly orped and de i to he nedly aerthe Anamy ngir unit nbiled aer a perana stomnde by ng an in lat e te UC t lswoe d3 amand te be taping oc tepis and cics Medcal d th optas and cincs a tey head aothestuton b ther intafors to t pets n Inacts Though there was detiaion of ees and sone adional cortaniation of soil and lakes, the main inpe of the acodent was death and inury b humans and anmals. Estinates fte nunber of inmed man deats caed ty the Bhopal gas cloud wary hom the offic ndan gevenme e aproiatly 200 toe 13.000 favd by cal v The nunber e an cnnung to suerat over the net several yars tas been estiated 20000 to 30000nd by 0 when the goverment of Madhtya Pradesh provded the Supeme Coutd nde wh a ist d vains gbe tor compenton 3818perrs n d dad om e ecs of g epon Addn esands were nade suicenty be unable to wort Medcal reaent of suvios was complia by lack awgeabout wh gases ecaped te pant the pacty of maton rovied by on Cabide and UCL the geneal ack of omaton aou the long mjs dnd om inmed c afghpoue to MCodg and uncetaty atout ht t thenca ohe ta MC ha psoned the victins The deats alse led to onsideable dplion of anly v as widows and oghans ed as aderapartiolarty tor amles taking in sunionwhe neded condinung medical can Lacaly and gobaly bne for the accident was quy assiged Unien Cabie Cansient wh wispad beles tht utinatonas contrl th side opeions wy desely ter tCL w de pole the condon of th plat and the endngf n thop e his eient w d by an na of uS layes seeing b sgn upce to aganat nin Caide ne usA inhe pars af te wone unior Canie e yr t orgene uton b the lk of pacy out heic company pns nd f Case Sunmary point for enviranmentalist mobilication. This was inensfed in 1985 as a string of smaller gas leaks West Virginia plant made the news and the US govenment investpaed condtons at the pant at the Though twas clear inmediately that Union Carbide andior its executves woul tce orininal and tort charges in India, investors imposed penaties far more quickly Standard and Poons dropped the company's credit aing to the lowest invesment grade while instttonal investors universides, pension unds mutual funds) dumped enough shares tor their stake in the fm to decine from 65 to 35% By December 1985, some 30% of Union Cartbide stack was owned by ival companies or speculators poised for a hosle takeover. The compary spent the nest seversl years fending of teover bids most often by seling its more profable divisions to raise the money needed whe asorqured to set aside funds for payment of legal setements. It sold ts 50.1% stake in UCL to an Indian fm in 1994 with the proceeds going to buld and endow a hospta for gas victins n Shopa The ast remmats of Unon Cartide were absoed by Dow Chemical Company in 2001. Victims fled lawsuts against both the compary and the indan govemment jcting ts alure to reguate eectvely) n Inda and te USA during ealy 1985. To deal with the proileration of clains the Indian Parament adopted special legisiation in March giving the govemment sole authority to sue on behalf of victms, and the govemment Sled its own lawsut in US couts The US courts consalided the several thousand private clains and the Indian govemment suit into a single case which was heard in the Federal District Court for the Southem District of New York Eforts to negotiate a seement foundered an Indian govenment objections to te amounts offered by Union Carbide and the suit wetto The inl US hearing focused on admissibity of the lawsuit since the events had ocumed in inda and intemational lega noms usually favor trial in the place whene events ocouned. The Indian govemment and the lawyers for indvidual daimants agued strenuously for a US hearing while Union Cabide aed equaly strenuously tor dismissing the case in favor of hearings in Indian courts for the saneeason US courts alowed greater opportunities for class action suits and were likely to award higher compensation to the victims Yet in a decision interpretable either as delerence to the Indan legal system or avictory tor Union Carbide, the US District court nuled that the lawsuts should be heard in Inda Efforts to negotiate a settement continued, wih the Indian Supreme Court pressing the sides to come to as global settement of all cases. They agreed on compensation of $40mlion a setement panel of the indan Supreme Court approved and ordered the partes to camy out The setement arused considerable oppoition as it fel far short of the $3 billion that victins advocates were seeking and appeal was made to he u Supreme Court Rafmed the decision in t91, adding a provsion equring Uhion Carbide to fund building of a hosptal in Bhopal to treat sunviving victins. Only in 2003 die the Govemment of India complete paying compensation to victims, at which me a new dipue aroe over what to do wih the approximately $390 million nemaining after compensation was paid he money haing eamed interest between 1589 and the payout The Indan Supreme Court ordered the govemment to release this to programs for vicims This settement did not cover the nelated question of lability to clean up or pay tor cleaning up the plant ste Union Carbide and UCIL perfomed some cleanup work under Madhya Pradesh supenvision in 1986-98 Case Summary UCLs successor tumed the land back to Madhya Pradesh in 1998 and all wok put under state autherity Eforts to file dlass action suits in the USAto compensate victims of aer expesure to contamination and to secure money for dleanup of the plant site were intated in 1999 and 2007. The 1999 sut was jected in 2004 and 2005, and the 2007 sut suspended pending the outcome of appeas agan those suing ucC's and UCIL's sucessor companies, Dow Chemical in the USA and Eveready industries in Inda (mainly the fomer), ae now the targets of transnational campaigns on behalf odf the vicins For and-corporate and anticaptalism activists, Bheopar has become shorthand tor corperate greed and callousness. For the victims and their supporters, theword conjures up continuing inacton by their own govemment as well The accident also inspied consideable discussion of need for beter eguations addressing chemical plant safety, infomation about toxic chemicas and contingency planning for miating the impact of gas leaks inside and outside plants. in Westem Europe this process was wel advanced in reaction to the 1976 Seveso gas leak in taly, Paicy intiatves were moenumerous in the uSA particulay ater a significant leak from Union Carbide's MIC plant in West Viginia in ealy 1985 sent local esidents to the hospital. Reaction was less strong in India where environmental lw was less developed and citizen environmental movements weker End Please read the Bhopal case study. It concerns a multinational company and its local subsidiary and refers to one of the worst industrial accidents in history. The case covers a lot of foundational material we have reviewed in class i.e. FDI, differences in laws, evaluation of factors of production by the multinational to locate their foreign unit, etc Once you have read the case I would like you address the following questions in some detail but I don't need a thesis Bullet points with appropriate level of support are fine don't just answer yes, no, maybe 1. Why did the multinational pick India? 2. How did they implement their local operation i.e partnership, FDI, etc. and why that mode? 3. Why did they choose Bhopal as their final site? 4. What happened? 5. Who is to blame (this needs to reflect your opinion so I would like some justification for your answer) 6. How could this have been avoided? 7. What are some of the Cultural and Ethical issues raised? A maximum of 2 pages is all I need and if you can do it in less that's fine as long as your points are concise, have some element of support/logic and clearly express your view/opinion. Please be prepared to discuss the case in class taking into account everything we have covered so far on Globalization, Legal Systems, Cultural and Ethics issues Bhopal Plant Disaster-Situation Summary MJ eMh220 Duing thenight f 2a0cember 184 aea of some 40 to ofmathyl cyaneMC gs med with ninon her gsses foma chemica plant owned and sperated by UnienCaide nd Lned a patyouned wbidary of the US-based Union Cartide Coporation caused one of the highestcauaty industal acoders o the 20h century Aeast 2000pe ded nmetaly and another 200,000 t enical of aawadsceay atrble e g k cotaniaton in he neaty seements nay tave mupe sources he contamiation of the plant ste omay ans of general production acivity nda's Economic Anbitions When inda ataired independence ton Oreat Brain in 1947,s new ptical leaders waled to mae the couy weer by encouraging deveiopnent oft modem industry thad rong suppot tom the c whe genealy ageed ut nda'st k of ndion andnc devet we he of these coloniea poices Thua,the new govenment coud eped widespread support for any goky that appeed to set the conty an the pa tendu on Thesee poial elle ogtto a seef belels bout enm poley hat soughta middle way beteen te heavy ce n pivte nps th had characteried Brt industraaton in te 1and 19cures and the relance on c ngf the whole economy haracerdc of the Sevier Unien's inusiscton e ine 17. The combnaton of wetre ate and mied ecnemy deveiped by ndan leaders was very sm to Westem European ides of he peried ndan polcs eaders l trWeem Eupean capats, beled hapnate aps wee o foosed on proftabity af the fim to undertke he econonic eorganizaion needed for asauring broad based prospety and in primarly agricutural courtries e Inda the transfomations needed to introduce Tw be D s Sd DEE Pase Uly nhp ton te Scountan ndt y n o th te on Snce Fano Mmn o te DEESE an n und mm Snandg A e cse Pt Case Sunmary mode industy Both beleved that only amiedeconomy, in which state-red entprises operated the mar sectors of the economy and grivate entergrise gided ty consideratie gevemment mgton grotect warkers and the general gubic, wouid suessuly mee the econonic halerges tacing the country In inda steelmaking ayn shipping aviation and electrical power generation were the most prominent industres dominated by state-owned ims thenascent indian cthemcal industry was a mis of souned and prate m n is Resolution on ndua Palcy in 194 ndan gvenment espressed asong pr Indan enterprise but indcated wingness to alow some colboration with toign fims for whie E should be reagiced that paricipation offonign.captal and enterpse particalaly a as industi techique and kowedge, wil te di value to the pit industralizaton f the unty, tis ecessry hathe condiions under which they may pertiopte in indan ndusty should be caretuly aed in the national iterst Suabe legisation wll be roduced tor ths The folow-up leglaton induded ints on torwign shareholding in Indan fms, so that muntonas coud own 100% of her ndan sbidares but had to shaownershi wh ndan naonals ao preted colaboton only hen the foregnes ouned technology not avalae in inda The govemment hoped to temine the ms on whch indiane oould acquire echnology by law but eaty petrence tor inporing t the bwest coef and net paying leene fee n mored techrology formaetn Sye t pcon lass 20) had to bemodted in the tce of reig compaes uinges t edehdn fs d or pa on thoe t Thu the ndangoeent bak on a system of quiring that subedaries of egn fms be paowned by Indian nationals tht the ndans be aned al pects of fm opeatons and techreloges tht any business operalon using foign ecnlogy be lcsd by the e and that he oweme spcaly pre he to and duion of employment of toreigners hired as managers, echnical specialis or workers The Comeany and the City Union Catide ndia unted (UCL) operee n hda even before independence.prmarly as a maer and seler of dry cell baties under the Eveready tademak abousec in the USA by Union Catide coton Inde had sufered serious tod shortages in the eatymd 10s becaune of doug ne the edng a growng popuon and incresing the supply of localy prown coton tor he growng tee indsty When UCLsed ts Agicutura Products Dvison in the m-6 he lagest concereaton of Indan dhenical pans was bcaed nChembur near Bonbay Manbalanaeacaled'es chanber by sdts because of the eanve r poton Thee was vely e duaty inthopa but bot etigvenet andhee govemed shs P anis bbring y o te e c grodus RAD tr ret wiha twntee gnpesd hecalpt on a nonly tr menten ggva 198 ad 7, ten poon of Madrya Prde Boas t gon da gt endng utye ne s p htndaing ty loet ster pele at wan an uneped nd tteemro heThe meng s y ninda y sheb n wed or h e eh py n a They y d th nd sp horeshe cy nret oas antay ch rel spled y n 180 cy nd w WenCodte n w 3000ce porkore of te. ous fothe cate Od andaaway r Ae ads tan ydhe n The tos nhe l e out gods h h d e sbahes beceves s yhe p y m te Mya nt s om te y we dvd n 110800and 2-M gvennet adpecae e devres and ga a y L ht ben fomunged an r at t s nd r 95 gvemet r 5300st SEVsay n n ny nyh iny17 The he re tet e n yn Ag 134 ith the pn ch penoe Ca Suy wn tnes teC y a ti oundpny q a T da tat a te paryip's d a an hey y ped h anathe setes coult not te noad anda d ufeed bon parre pn d gu te st er te e he sticat n Thouhy sor sa tety a The Ecoonic Shuation of the Cenial Pant The UC p du a derice my as wtand ekis an d kar ndangve.an ta h heplat mo bypaUCL al n ahe ne o po C oun Cnatay hd versf he aqat te w he pa p ptol to C p 1 Aern n ss in 181, Uner Ca cyeawl CLat mt hehy pe e heer gamentwic the impots The efecyee t tg he proc e 1M2 ee of he metynynnwongn Cand Ca et w e d temet al ndtsow n ca nde di E y oder sEvra t tt t UCL and Usan Cartin 16 een 814 UL C and 15 d upnty e The Gon Lek AUCLandCnd t de etyd pnda Te a eu ndt unt wa dUnnC W 2 uthp a d heybap g y nys Looaco vus sd ay tc us is eyw gogto In he ty to ad o eUi Cadeonmended 3 speson.and we h t n wokes Oter ate plat w ced by dun Ltoranage nceer 11, and he wortre wer ddinat g y the ta of 64 p apon w fost onang up ng cka of chenical repa aofthe ptOb e g of heaand eyn mo62 ors of myl cyanich w the d Abou 22 T 1 and the t in tan 13 Pas to dra of the MC ane tan ta time and s te EvN ww. dnge On Ober 3ngbkeot tsof op th P Meister india Gandh bn a by sone her Sie bous achete tyCty ahoinpod a cue or v ks The ng st works nand aut of the plant ind civty tor muh of Nonbe Prducon w ap by by inby to p Ta0b o s dng fom Ta 11 nd and td wng of 2 evter the ond sgevi o o u pertrma peda s in the MC rage aato cntrol comion As his opeion bege abot 930pm mt f the ytemsthe pant we d ping o The nt br, dg ay uh te vt with caic d won andy and apend dy brap Te h d ge d yto ar leak t ha ben sht down a few weels sarler tr repacenent f a amded peand all reler eshe patwee dredy conneedhe pas vet sante The retrgeron sysen designe to kp MC stage anks co ha been tuned vemrth belon and the eo dr or e he plart The frewter spraying systems desigred s dea w res co down ovehed eqpment ar pride sppenentary woter netionof sses was opetional bat the sry co aeach he tp f the fae stak The hgh-pessure escape vahe whch wou elee presu inde excreded 4s and sht sto te vetor he frwton te genely acceped ascoust of eves te waing opeors paeded rspe ae p bind o the ps te make sur that water de net back up o strage tas andheat one of teeder vaes at the boto of the pipes wtere wash water shouid hae cone ad wre teke The worker doing the washing notced this and susgended washing to mpoe prblem meie sger an operions spervir rather than a manence superiso tolto cont The ckage caed water to back up This was nat dected and waing cotuet ater the tsi comes on at 10 30-1045 pm Water han began etering Tank 610 by passing tough a nmlyopen pressuraton vae and then though a paty pen soaon ave that hu hve ben ose er he a dra of MC but was nat because of ether human enar ar mechanical tre By 11 pm the cots pessu indicar for Tank 0ead 25 p,g fom 2 ps eaer i the evening Hower his was wihn nom fucuions s dienot use aam er ewas est ied by the se of ges 11.30 A w fond and awray k Woten ded onand wh do during their mguier 1130pm t b P ntined i CSy A te coreon oper ot the tars te doute-eck he gg h valve pop, heard lings from the andergeound ks and erough the conoven te tmed oecoo oe the sc s butte c sa ted o Ag de ga hev k1240 etsv e roemand he m es sounded Hewee, the sres adibe outide the pet w h f a e mines Etots to dce the dange by tandeng liqud MC e ancher a ed be he nt enpty as perio iny tee Eotoe te cpn p whw led bece e pay c et ach the pf the k Tha g d l o2 hours The anount of gs ecping uuly put ton Rdsey e ge L m ste nduced panc and peple began to The thopal polos we porly orped and de i to he nedly aerthe Anamy ngir unit nbiled aer a perana stomnde by ng an in lat e te UC t lswoe d3 amand te be taping oc tepis and cics Medcal d th optas and cincs a tey head aothestuton b ther intafors to t pets n Inacts Though there was detiaion of ees and sone adional cortaniation of soil and lakes, the main inpe of the acodent was death and inury b humans and anmals. Estinates fte nunber of inmed man deats caed ty the Bhopal gas cloud wary hom the offic ndan gevenme e aproiatly 200 toe 13.000 favd by cal v The nunber e an cnnung to suerat over the net several yars tas been estiated 20000 to 30000nd by 0 when the goverment of Madhtya Pradesh provded the Supeme Coutd nde wh a ist d vains gbe tor compenton 3818perrs n d dad om e ecs of g epon Addn esands were nade suicenty be unable to wort Medcal reaent of suvios was complia by lack awgeabout wh gases ecaped te pant the pacty of maton rovied by on Cabide and UCL the geneal ack of omaton aou the long mjs dnd om inmed c afghpoue to MCodg and uncetaty atout ht t thenca ohe ta MC ha psoned the victins The deats alse led to onsideable dplion of anly v as widows and oghans ed as aderapartiolarty tor amles taking in sunionwhe neded condinung medical can Lacaly and gobaly bne for the accident was quy assiged Unien Cabie Cansient wh wispad beles tht utinatonas contrl th side opeions wy desely ter tCL w de pole the condon of th plat and the endngf n thop e his eient w d by an na of uS layes seeing b sgn upce to aganat nin Caide ne usA inhe pars af te wone unior Canie e yr t orgene uton b the lk of pacy out heic company pns nd f Case Sunmary point for enviranmentalist mobilication. This was inensfed in 1985 as a string of smaller gas leaks West Virginia plant made the news and the US govenment investpaed condtons at the pant at the Though twas clear inmediately that Union Carbide andior its executves woul tce orininal and tort charges in India, investors imposed penaties far more quickly Standard and Poons dropped the company's credit aing to the lowest invesment grade while instttonal investors universides, pension unds mutual funds) dumped enough shares tor their stake in the fm to decine from 65 to 35% By December 1985, some 30% of Union Cartbide stack was owned by ival companies or speculators poised for a hosle takeover. The compary spent the nest seversl years fending of teover bids most often by seling its more profable divisions to raise the money needed whe asorqured to set aside funds for payment of legal setements. It sold ts 50.1% stake in UCL to an Indian fm in 1994 with the proceeds going to buld and endow a hospta for gas victins n Shopa The ast remmats of Unon Cartide were absoed by Dow Chemical Company in 2001. Victims fled lawsuts against both the compary and the indan govemment jcting ts alure to reguate eectvely) n Inda and te USA during ealy 1985. To deal with the proileration of clains the Indian Parament adopted special legisiation in March giving the govemment sole authority to sue on behalf of victms, and the govemment Sled its own lawsut in US couts The US courts consalided the several thousand private clains and the Indian govemment suit into a single case which was heard in the Federal District Court for the Southem District of New York Eforts to negotiate a seement foundered an Indian govenment objections to te amounts offered by Union Carbide and the suit wetto The inl US hearing focused on admissibity of the lawsuit since the events had ocumed in inda and intemational lega noms usually favor trial in the place whene events ocouned. The Indian govemment and the lawyers for indvidual daimants agued strenuously for a US hearing while Union Cabide aed equaly strenuously tor dismissing the case in favor of hearings in Indian courts for the saneeason US courts alowed greater opportunities for class action suits and were likely to award higher compensation to the victims Yet in a decision interpretable either as delerence to the Indan legal system or avictory tor Union Carbide, the US District court nuled that the lawsuts should be heard in Inda Efforts to negotiate a settement continued, wih the Indian Supreme Court pressing the sides to come to as global settement of all cases. They agreed on compensation of $40mlion a setement panel of the indan Supreme Court approved and ordered the partes to camy out The setement arused considerable oppoition as it fel far short of the $3 billion that victins advocates were seeking and appeal was made to he u Supreme Court Rafmed the decision in t91, adding a provsion equring Uhion Carbide to fund building of a hosptal in Bhopal to treat sunviving victins. Only in 2003 die the Govemment of India complete paying compensation to victims, at which me a new dipue aroe over what to do wih the approximately $390 million nemaining after compensation was paid he money haing eamed interest between 1589 and the payout The Indan Supreme Court ordered the govemment to release this to programs for vicims This settement did not cover the nelated question of lability to clean up or pay tor cleaning up the plant ste Union Carbide and UCIL perfomed some cleanup work under Madhya Pradesh supenvision in 1986-98 Case Summary UCLs successor tumed the land back to Madhya Pradesh in 1998 and all wok put under state autherity Eforts to file dlass action suits in the USAto compensate victims of aer expesure to contamination and to secure money for dleanup of the plant site were intated in 1999 and 2007. The 1999 sut was jected in 2004 and 2005, and the 2007 sut suspended pending the outcome of appeas agan those suing ucC's and UCIL's sucessor companies, Dow Chemical in the USA and Eveready industries in Inda (mainly the fomer), ae now the targets of transnational campaigns on behalf odf the vicins For and-corporate and anticaptalism activists, Bheopar has become shorthand tor corperate greed and callousness. For the victims and their supporters, theword conjures up continuing inacton by their own govemment as well The accident also inspied consideable discussion of need for beter eguations addressing chemical plant safety, infomation about toxic chemicas and contingency planning for miating the impact of gas leaks inside and outside plants. in Westem Europe this process was wel advanced in reaction to the 1976 Seveso gas leak in taly, Paicy intiatves were moenumerous in the uSA particulay ater a significant leak from Union Carbide's MIC plant in West Viginia in ealy 1985 sent local esidents to the hospital. Reaction was less strong in India where environmental lw was less developed and citizen environmental movements weker End