Case Study- Bhopal (Union Carbide)

Ashley StewartMedia 301

September 21, 2010

The Causes• Company began using a more harmful pesticide manufacturing

process.• The Plant was located near a very heavily populated area.• There was a dependence mainly on manual operations. • Management deficiencies were also revealed such as

– An absence of knowledgeable operators for machinery.– Safety management was reduced.

• Example: The MIC tank alarms in the plant had not worked for four years.

– Maintenance was not up to par. – Emergency operation plans were inadequate.

• .

Response to Crisis• “Commentators in India have pointed out that the US

government appears far more concerned about a disaster in its own back yard than one which took place years ago in the developing world.”– This quote was a response of an resident of India pertaining to the oil spill

in the United States just months ago. – http://www.bbc.co.uk/news/10364407

• Responses to The gas leak range but one thing is for certain that it opened millions of eyes as to how something that is not controlled can and will result in tragic consequences.

• Union Carbide did try to redeem themselves here are some of the many efforts they had in response to this tremendous crisis:– 2 million dollars in Prime Minister relief fund directly after the tragedy. – A declined offer, that was to build a 10 million dollar hospital in Bhpal. – 5 million to the Indian Red Cross. – And many more.

The Lessons learned as far as Mass Communications Crisis are concerned

• It was difficult for correct information to grace India’s population because Union Carbide was reluctant to release information to the media.

• Union Carbides first official news release was a week after the tragedy.

• The media circus began again after the case was reopened last year.

Costs to the Company, both in real terms and in damage terms

• Union Carbide paid in the number of $470 million dollars to settle court claims.

• As a result Bhopal has been one of the worst industrial disasters in history.

• Union Carbides stock prices dropped dramatically following the accident.

• After the GAF attack the company sold their consumer profits division which was one of their most profitable sectors in their company.

• Most top managers either retired, transferred, or left the company after the tragedy making way for new management to deal with the crisis at hand.

Any lingering effects of the Crisis

• It has been said that many of the Bhopal survivors have still after 20 years not received their compensation.

• In the number of 50,000 survivors are still struggling from the exposure nearing over twenty years ago.

• Diseases range from the eyes, nose, lungs, kidneys, liver, intestines, muscles, and even the brain.

Sources• http://www.environmentportal.in/files/report-3.pd• http://www.ou.edu/deptcomm/dodjcc/groups/02C2/Union%

20Carbide.htm• http://

www.unu.edu/unupress/unupbooks/uu21le/uu21le0c.htm• http://

www.npr.org/templates/story/story.php?storyId=4199681• http://www.twnside.org.sg/title/bhopal-cn.htm