The bhopal incident and union carbide: Ramifications of an industrial accident

Abstract

Bhopal, a city in central India, has become a household word all over the world because the worst industrial disaster in history occurred there at the Union Carbide plant. The incident was reported widely in the world press and debated in a variety of forums due to the number of questions it raised and the issues of industrial safety that it highlighted, especially concerning the introduction of highly sophisticated technologies in developing societies (even though no one is really immune from these “side effects” or costs of progress anywhere in the world). It will have a lasting impact on a large number of people and institutions because of its magnitude in terms of those directly affected and the number of business, technical, legal, and legislative issues involved. The affected parties include: Union Carbide Corporation, U.S.A. (UCC), Union Carbide India, Ltd. (UCIL), and their workers and shareholders in both countries; the people killed and injured and their relatives; the Indian government, the Madhya Pradesh state government, and the United States government; American and Indian lawyers who have joined the fray on behalf of the various parties; and directly or indirectly all multinational corporations. The incident and its outcome will affect the relationship of multinational corporations with host countries, especially the developing countries, who feel the need to allow them to operate in their countries but view their activities with suspicion (due to a variety of real and perceived grievances). It has the potential for changing Indian, American, and other countries' laws with respect to multinationals, chemical companies, and industrial safety. The whole world's attitude about uses, production, and storage of hazardous materials is being altered as a result of this incident, and chemical companies have been put on notice that the world is watching.