The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Monday, November 10, 2008

Strategic CSR - Union Carbide

The article in the url below describes how the gas leak that occurred in Bhopal, India almost 25 years ago has still not been cleared up. As a result, the disaster continues to generate negative headlines for Union Carbide (and Dow Chemicals, which bought Union Carbide in 2001) on the front page of the NYT (Issues: Human Rights, p234):

“Hundreds of tons of waste still languish inside a tin-roofed warehouse in a corner of the old grounds of the Union Carbide pesticide factory here, nearly a quarter-century after a poison gas leak killed thousands and turned this ancient city into a notorious symbol of industrial disaster.”

Putting aside any arguments of moral responsibility, it is amazing that a firm like Dow does not just pay what it takes to make this problem go away (Chapter 1: A Rational Argument for CSR, p17):

“The toxic remains have yet to be carted away. No one has examined to what extent, over more than two decades, they have seeped into the soil and water … Nor has anyone bothered to address the concerns of those who have drunk that water and tended kitchen gardens on this soil and who now present a wide range of ailments, including cleft palates and mental retardation, among their children as evidence of a second generation of Bhopal victims.”

Over the summer, the Supreme Court delivered a decision on the 1989 Exxon Valdez case. Both that case and the Bhopal disaster reflect poorly (to say the least) on the strategic decisions taken by the executives of both companies. At least, however, Exxon has accepted some degree of responsibility for its role in the Valdez oil spill.

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther

Decades Later, Toxic Sludge Torments Bhopal
By SOMINI SENGUPTA
1858 words
7 July 2008
The New York Times
Late Edition - Final
1
http://www.nytimes.com/2008/07/07/world/asia/07bhopal.html