Case Studies of Business Ethics & Corporate Governance

Just after midnight on December 3, 1984, a pesticide plant in Bhopal, India had a chemical leak accident. The chemical that was released into the air is called methyl isocyanate, or MIC, used to make pesticides. This chemical is tremendously harmful and fatal to humans, livestock, and crops. Only a short-term exposure may cause death or unfavorable health effects. The slums of Bhopal and its residents that surrounded the plant which were mostly affected by the gas suffered dearly. An estimated 8,000 people dead and about 300,000 more suffering from its effects. Bloated carcasses of cattle dotted the streets. Tree and plant leaves were yellow and brittle. "Corpses littered the streets and discovered behind locked doors, trapped in private

On December 2nd 1984, 40 tons of deadly Methyl Isocyanate (MIC) gas and other toxic gasses were released in to the atmosphere from Union Carbide India, Limited’s (UCIL) plant in Bhopal, India. Water meant for cleaning internal pipes was mixed with MIC, due to a faulty valve, which led to an exothermic reaction. The pressure and heat from this powerful reaction led to break down of a safety valve which then caused MIC gas to be released into the atmosphere.

On December 2, 1984, water inadvertently entered a storage tank containing more than 80,000 pounds of methyl isocyanate, or MIC, which reacts violently with water. A subsequent runaway reaction generated heat and pressure causing a relief valve to open and resulted in a massive toxic gas release. A dense, lethal cloud of approximately 40 tons of MIC was released to the city exposing to thousands of people. An estimated 3,800 people died immediately, and tens of thousands of people were injured. As of 1994, more than 50,000 people remained partially or totally disabled as a result of exposure to MIC. This tragedy led to the establishment of laws and Process Safety Management system.

a. Can a multinational firm adopt varying ethical standards [such as with regard to product safety (Pinto), employee benefits (Nike) and “kickbacks” to win business (HP)] in its global operations? Why or Why Not? Discuss in depth based

Multinational Corporations have always been and are currently now under harsh criticism. They are mainly condemned for exploiting resources and workers of third world countries, taking jobs away from the US industry, and destroying local cultures. Although there are negatives of multinational corporations, there are also positives. Business done overseas provides jobs for the people of the host country, improving the standard of living, and transfers technology. Richard T. De George explains moral standards, in five basic theses, that multinational corporations must adhere to in order to maintain corporate ethics.

Business ethics refers to the consideration of moral decisions and responsibilities in the process of operating a business. Business ethics, practiced throughout the deepest layers of a company, become the heart and soul of the company 's culture and can mean the difference between success and failure. Values drive behavior and therefore need to be consciously stated, but they also need to be affirmed by actions. Ethical business environments are created with foundations of integrity, accountability and commitment.

The disaster in Bhopal, India was the worst industrial disaster ever. The plant where it occurred was Union Carbide, an American owned plant that makes batteries, but to make them they had to first have a chemical known as MIC. That was made in the plant in Bhopal. MIC is volatile, unpredictable and fatal if inhaled. It is one of the most toxic and lethal substances. Regardless, people still wanted to work for the Union Carbide plant in Bhopal because it paid well. However, people who worked at the plant begin to worry about the chemicals and their toxicities.

The aspects of disaster management are an important step that is required to be inclusive in the national legislation of any country. This is implicative to the differential aspects that may help the nation to recover the stature of disastrous conditions that could ruin the infrastructure of a city or the country as a whole. The essay has been designed to be undertaking an effective study of the similar aspects that defines the structure of the

As the book progressed we saw Bakan’s idea of the corporation as a machine built to destroy the environment, wages and health; all at no cost to

Three causes of the 1984 Bhopal Chemical Plant disaster in India were long-term financial difficulties, poor safety management and inadequate emergency plans. The disaster occurred when water entered a methyl isocyanate (MIC) storage tank, which led to a runaway reaction and then discharged toxic MIC vapour into the atmosphere. The leak caused the deaths of more than 2,000 people and injured about 200,000 locals in the surrounding shanty towns (Kletz 2009, p. 338).

International business ethics challenges the corporate world to deal with questions of what to do in situations where ethical standards come into conflict as a result of the different cultural practices in the nation. Since, there is this dilemma that has progressively troubled the large multinational corporations, international business ethics has arisen to help address these adhesive subject matters. There are several international business ethics discussions on the question of how to act in the home country as opposed to the host country is at the central point of most international corporations. The argument in question is how companies should practice their business according

Ethical dilemmas are virtually impossible to avoid if you are a participant in the workforce. The definition of an ethical dilemma stands as a situation that challenges two or more “right” values that arise in a conflict (Treviño & Nelson, 2014). As ethical persons, how may we overcome ethical dilemmas and finish on the “right” side? The research mentioned in Trevino’s and Nelson’s book, “Managing Business Ethics: Straight Talk About How to Do It Right,” suggests that preparing for specific ethical challenges before a situation occurs can adequately prepare the workforce to better handle real-world applications when an ethical situation transpires. The notion that ethics is teachable inspires the following case analysis. The case analysis involving chemical safety will discuss the facts and issues, stakeholders, decision alternatives, and real-work constraints. Focusing on each of the previously mentioned topics, I will describe the applications using Utilitarian, Kantian Ethics, and Rawlsian Justice Analysis’s.

This case study was a powerful example to illustrate the presence of ethics within the

ITC Ltd has worked exremly hard to start several procedures that have led to compliance of the standards of social responsibility. ITC’s dealings within the tobacco industry have contributed to the increase in company revenues and the company has worked towards following the triple bottom line and giving back to society. Most, businesses pay little attention to their social responsibilities and make it part of their overall strategy, instead they concentrate more on financial benefits from the sales of products. Consequently, managing business in a socially responsive manner contributes to the best combination of business success and societal acceptance, trust and loyalty. Giving back to the community in ways that benefits only society such as planting trees to curb pollution and help the environment or using biodegradable materials in packaging can reap financial benefits to a company by building loyalty among the community. The notion of business ethics and corporate social responsibility is becoming a defining concept in all industries worldwide. ITC believes in the Triple Bottom Line philosophy where the performance and perception of a corporation should not be judged only on the basis of its financial statements or revenues, but its environmental and social performance as well. ITC is one of the only companies in the world to be carbon positive, water positive, and conduct solid waste recycling. ITC provides water to areas where water is very

This essay’s thesis is that there is currently a lack legal apparatuses that can be used to hold transnational corporations liable for human rights violations; specifically violation of labour rights. This paper seeks to discuss various legal instruments that are applicable to transnational corporations and human rights violations. It will also provide theoretical framework for understanding the nature of human rights and legal framework of labour laws. This essay will address the following questions: What is the legal status of transnational corporations? How can current legal apparatuses be used to hold transnational corporations accountable for human rights violations? This essay will also consider the case of human right violations by Nike Corporation in order to show that external pressures can produce development and accountability.