Question 2 (7 Marks)

Though many MNCs espouse and follow rigid codes of social responsibility in their home countries they are often not as diligent with respect to 'host' or overseas countries. In 1984 the Bhopal disaster in Madhya Pradesh, India killed 3,787 and impacted a further 558,125 people. The corporation in question was Union Carbide, a majority USA owned company. Indian courts convicted the Chairman and other senior executives of "...causing death by negligence".

1. Why do you believe that Union Carbide had a less stringent policy in India with respect to negligence than they did in the USA?
2. What is the way to fix this situation? Explain whether it is legislation or cultural change from MNCs that is required