UNION CARBIDE

THE COMPANY WHICH FAILED IN IT’S

(CORPORATE SOCIAL RESPONSIBILITY)
COMPANY IN BRIEF

 Union Carbide Corporation (Union Carbide) is one of the largest chemical and
polymer companies in the united states
 Founded in 1917 and currently employing over 3800 employees
 Union carbide entered India under the banner UCIL ( Union carbide India limited)
 The UCIL factory was built in 1969 to produce the pesticide carbaryl (trademark
Sevin). A methyl isocyanate (MIC) production plant was added in 1979
Continued..
 Union Carbide became infamous for the worst ever industrial disaster that took
place at its plant in Bhopal (India) in 1984
 Company was found liable for the disaster but had denied responsibility for the
incident
 After being sued by the Government of India, Union Carbide agreed to an out-of-
court settlement of US$470 million in 1989
 Several issues over the incident are yet to be settled

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Why company failed
The company failed in its corporate social responsibility because a gas leakage
happened at company's plant , led thousands of death and still have a impact on
people of Bhopal.

Causes of leakage:
 Storing MIC in large tanks
 Poor maintenance after the plant ceased MIC production at the end of 1984
 Failure of several safety systems (due to poor maintenance)
 Safety systems being switched off to save money—including the MIC tank
refrigeration system which could have mitigated the disaster severity
 Plant location close to a densely populated area
Effect of leakage became a disaster

Dead
Mother Thousands Gas
and son of people leaking
died
Impact on company

 Company’s name became a shame

 Lost its market and goodwill
 Had incurred a huge amount to settle the case ( $470 million )
 Later it was taken over by MacLeod Russell (India) Limited of Calcutta, and UCIL
was renamed Eveready Industries India Limited (Eveready Industries).