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Ethical dilemma with bhopal disaster
Environment ethic bhopal tragedy
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After the Bhopal Disaster, Union Carbide made an ethical decision through their legal strategy to secure the best outcome for themselves and to keep their company from going bankrupt multiple times over. Union Carbide used the corruption of the Indian court system to their advantage to minimize the amount they would pay in damages to the victims. Their strategy wouldn’t be considered moral to the victims of this chemical explosion if the trial were kept in the American court system. What is ethical isn’t always considered moral to all the parties involved. With a company facing bankruptcy and losing everything they had, the only ethical decision was to use the court systems to their advantage. By doing so, they made the ethical decision strictly …show more content…
As the CEO of Union Carbide, I would have made the ethical decision in doing what’s best for the company by using the best possible legal strategy. According to The Times of India, “an Indian court declared Warren Anderson, the CEO of the Union Carbide at the time of the disaster, an absconder and a fugitive from justice (Rajgahatta)” after he fled on bail to the U.S. to avoid prosecution. Anderson is now 89 and he lives in a million-dollar house on Long Island and refuses to return to India to face criminal charges. Unlike the actual CEO, I wouldn’t leave my company behind in order to not face my charges. Thus, the obituary would show that I have a strong character, as I would never leave my company out to dry. I would do whatever it took to keep employees from losing their jobs. People would understand I had the best intention in doing what I did so that my employees wouldn’t suffer. I would want that to show in my obituary so people would always remember that my employees came first and I would do what’s best from my …show more content…
I believe it was in the best interest for the company to do whatever they could to save the company and their employees. It seems to be more of an issue that the Indian system was slow and susceptible to corruption and bribery, rather than the fact Union Carbide chose to go that route. The decision made was ethical for the company as it ultimately saved itself from going bankrupt. They tried to do their best the respect the rights of the induvial involved and creating the best outcome. Although outside factors played a role in the eventual dispersal of money, Union Carbide made an ethical decision and saved its company while still attempting to pay the
Arnold & Porter chose to sue Pittston rather than the Buffalo Mining Company because the value of the corporation allowed for adequate compensation to the victims. Author and head lawyer for the plaintiffs, Gerald M. Stern, writes that the original goal was sue to sue for $21 million for the disaster to have a material effect on the cooperation (51). To avoid responsibility Pittston attempted to prove that the Buffalo Mining Company was an independent corporation with its own board of directors. The lawyers for the plaintiffs disproved this claim by arguing the Buffalo Mining Company never held formal meetings of the board of directors and was not independent of the parent company. During this case Pittston’s Oil division had applied to build an oil refinery in Maine. The ...
1. How was Lincoln able to grow and prosper for so long in such a difficult commodity industry that forced out other giants such as General Electric, Westinghouse and BOC? What is the source of Lincoln’s outstanding and enduring success?
The ethical issue in this situation is the willingness of the company’s director to prevent the employees from organizing in union. Among others, the company’s director try to use unfair tactic like diversion, intimidation, manipulation, termination of job contract and threat to shut down the company leading to massive loss of job. In an ethical standpoint, these tactics are wrong.
Many organizations have been destroyed or heavily damaged financially and took a hit in terms of reputation, for example, Enron. The word Ethics is derived from a Greek word called Ethos, meaning “The character or values particular to a specific person, people, culture or movement” (The American Heritage Dictionary, 2007, p. 295). Ethics has always played and will continue to play a huge role within the corporate world. Ethics is one of the important topics that are debated at lengths without reaching a conclusion, since there isn’t a right or wrong answer. It’s basically depends on how each individual perceives a particular situation. Over the past few years we have seen very poor unethical business practices by companies like Enron, which has affected many stakeholders. Poor unethical practices affect the society in many ways; employees lose their job, investors lose their money, and the country’s economy gets affected. This leads to people start losing confidence in the economy and the organizations that are being run by the so-called “educated” top executives that had one goal in their minds, personal gain. When Enron entered the scene in the mid-1980s, it was little more than a stodgy energy distribution system. Ten years later, it was a multi-billion dollar corporation, considered the poster child of the “new economy” for its willingness to use technology and the Internet in managing energy. Fifteen years later, the company is filing for bankruptcy on the heels of a massive financial collapse, likely the largest in corporate America’s history. As this paper is being written, the scope of Enron collapse is still being researched, poked and prodded. It will take years to determine what, exactly; the impact of the demise of this energy giant will be both on the industry and the
As a result, GM’s developer Edward Cole was well aware of the major design defect of the excessive weight in the rear causing General Motors to face 106 Corvair liability lawsuits involving injuries and death. After the publication of Nader’s book General Motors hired a private detective in New York to gather information and discredit Nader. Nader sued General Motors for invasion of privacy winning millions in the lawsuit. Furthermore, CEO James Roche promoted Edward Cole the Corvair design engineer in question, to GM’s President. Did the CEO Roche of General Motors make a sound ethical decision with the promotion?
After news of the scandal of Enron, one of the hottest items on e-Bay was a 64-page copy of Enron’s corporate code of ethics. One seller/former employee proclaimed it had “never been opened.” In the forward Kenneth L. Lay, CEO of Enron stated, “We want to be proud of Enron and to know that it enjoys a reputation for fairness and honesty and that it is respected (Enron 2).” For a company with such an extensive code of ethics and a CEO who seemed to want the company to be respected for that, there are still so many unanswered questions of what exactly went wrong. I believe that simply having a solid and thorough code of ethics alone does not prevent a company from acting unethically when given the right opportunity.
However, Sehgal mentioned, “All supply chains must be a combination of push and pull processes -- purely push or purely pull supply chains exist only in theory” (2009). The above figure shows guidance on how the push-pull boundary functioned in a distribution channel. For this channel of distribution that Valley Steel is in, I would say the push-pull boundary lies between the retailers and Valley Steel itself. The pull boundary would apply to retailers in this channel of distribution because they react directly to the demand of the customers itself. Valley Steel is in both push and pull boundary because they serve both to the retailers and to end users. However, based on the low amount of end users that Valley Steel sells to, Valley Steel is
The author felt that Boeing is plagued by bad company norms. Previous CEOs were people with low ethical sensitivity who had not been leading by example. Stonecipher committed an ethical lapse by having a relationship with an employee while Philip and Stonecipher travelled in luxurious business jet with personal handlers. Subconsciously, they were conveying a message across the company: Boeing tolerates ethical lapse; power and privileges are entitlements for higher ranking staff. McNerney agrees that bureaucracy has given higher ranking staff too much autonomy such that breaching ethical codes can be overlooked since little or none in the company can penalize them.
The United States located electronic company Electrocorp faced the problem of declining profitability due to rising production costs, specifically high wages, costly worker's safety and environmental standards. In order to solve this problem Electrocorp is deciding whether to relocate some of their plants to South Africa, Mexico, or the Philippines.
There are many questions surrounding the moral responsibility on corporations, but how can a resolution be reached. In the case study for Timothy & Thomas North America, three models of ethical standards will be cited. From the Stakeholders article, decision-making guidelines will need to be understood for Jonathan Stein, the new Vice President (VP) of International Contracts to have a clear vision of
The U.S. Steel Industry Steel trade has been an important industry, from a strategic perspective, as it U.S. weapons production, ship building, etc, …and from a national perspective, as steel is an important input for products like cars, washing machines, etc…Over the past 100 years, the U.S. steel industry has gone from producing 37% of the worlds steel to approximately 15%. Also since the 1960’s, the growth in steel production has leveled off due the increase in the use of plastics and the technological improvements in manufacturing. U.S. steel costs are normally higher in the U.S. due to the wages and benefits productions to employees and retires; in 1976, import restrictions imposed had little effect, hence U.S. steel is still considered of lower quality. By 2002, 31 U.S. steel companies filed for bankruptcy protection. Given the situation, there are a number of strategies that U.S. government should consider, including that the U.S. government should not be involved in protecting the steel, but instead should allowed for free trade, imposing import restrictions in the form of a tariff on imported steel, or offering support to the U.S. steel industry in the form of subsidies and/ or the absorption of legacy costs.
The Political, Social, and Legal Environment of Business. Case Study Analysis: Union Carbide Corporation and Bhopal. A single slip in action may cause lasting sorrow. A slight mistake in operation at a Union Carbide pesticide plant in Bhopal, India, caused a lot of deaths and injuries. What a tragedy it is.
Unocal is an oil company that was faced with an ethical dilemma. The owners and managers of this company wanted to invest money in Yadana project, and then got enormous profit. They knew that the government of the country, where this project was took place, violated the human rights of the local people. Unocal had evidence of these actions, but they decided to invest money in this project. To determine if their actions were ethical or not, we need to look at this problem from four different perspectives: utilitarian, rights, justice, and ethics of care.
One situation that demonstrates a legal and ethical dimension is shown in the idea of skipping the safety testing of the battery. The president is under pressure to maintain the market lead for Tri-star, failure to do so would find numerous employees get laid off. The president knows that a good battery would help them gain more worldwide customers and increase their market share. Thus, the president tasks the VP of engineering to develop a new battery in time for the launch of Tri-star’s flagship phone for next year. The vice president of engineering, Mr. Cutthroat, finds out that if they perform the safety test, the battery would not be ready for launch. Mr. Cutthroat comes up with the idea of skipping the safety test for the new battery they’ve developed to have it ready for the launch of the flagship phone. Tri-star is not required by law to safety test the batteries, but by skipping the safety test would endanger the consumers. While the company may not legally be responsible, whether or not they acted ethically is different. By skipping the safety test, they are not attempting to promote good consequences and instead are promoting bad consequences. So while they may not be held legally liable, they are definitely guilty of unethical behavior.
Goodbye Steel gained Corus Group in April 2007 for £6.2bn. Goodbye Steel is India's biggest private segment steel organization with 2005/06 incomes of US$5.0 billion and rough steel creation of 5.3 million tons crosswise over India and South-East Asia. Corus Group is Europe's second biggest steel maker with yearly incomes of over £9.2 billion and an unrefined steel creation of 18.2 million tons in 2005. This is a fascinating obtaining as the gained organization was just about four times the measure of the acquirer as far as income. The joined substance turned into the fifth biggest steel organization on the planet. The obtaining permitted Tata Steel section into the European market. This arrangement takes after the merger of Arcelor-Mittal