The Verbum Diaster

Verbum is a densely populated city in central Mishpat.In 2004 it has a population of 850,000 - comparable to the District of Columbia or Stockhom.

Micro Chemical, a U.S. company, had a chemical plant in the city.One of its products was pesticide.Early on December 3, 2004, 40 tons of the highly toxic gas methyl isocynate (MIC) was accidentally released into the air.Some of the safety equipment had been out of service for months, and other parts failed when water was allowed into the MIC holding tanks.The toxic cloud exposed up to a half million people.According to statistics from local officials, 2,000 died immediately, 6,000 died in the next few months, and between 150,000 and 600,00 people were injured. Micro Chemical puts the figures at 3,800 dead and 2,720 disabled; they claim there are no residual effects from exposure.

There were no emergency plans in place at the time, and government officials maintain that they were kept in the dark about the deadly nature of the chemicals in the plant.Micro Chemicals, now a subsidiary of Macro Chemical, claims the release was the result of sabotage.They denied liability, although in 2009 they agreed to a settlement of $470 million to the survivors.

The magistrate at Verbum demanded that Happy Harrison, the CEO of Micro Chemical at the time of the tragedy, answer to a charge of culpable homicide.The U.S. government has not acceded to an extradition request by Mishpat.

By July 2020, $300 million remained unused in the compensation fund.There were demonstrations in the streets against both Union Carbide and local politicians, and the Mishpat Supreme Court ordered distribution of the money.Macro feels that the fund has satisfied any obligations it may have had.

The plant was taken over by the Mishpat subsidiary of Neveready batteries but then seized by the local government, who are in the process of suing Neveready for decontamination costs. There are concerns that pollution from the accident will make the area unsafe for decades unless there are significant detoxification efforts.

Issues to Address

1. What responsibility do you believe a company has for its operations overseas?

2. If the accident was due to local worker not operating at standards that Micro Chemical would enforce in the United States, is the company excused from blame? Would your opinion change if it turned out that Micro Chemical owned the majority share in the plant?

3. What duties does the firm have to the local population?

4. What duties does the firm have to the environment?

5. Should any compensation be paid to the victims? What moral reason supports your view? Who should pay it? The company? The government? Consumers?

6. What moral lapses do you believe led to the tragedy?