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Contrasts Between Bhopal and Deepwater Horizon Highlight Differences in Corporate Ethics

in Compensation Claims, Industrial Accidents, Workplace Compensation Claims, Workplace Injuries, Wrongful Death Claims

The rapid response by BP in setting up a $20 billion compensation fund for the Deepwater Horizon oil spill has resulted in headlines in Indian newspapers alleging double standards.  The reality is a bit more complicated.

The 1983 Union Carbide India Limited pesticide plant disaster is bar far the worst industrial catastrophe in history, causing 2,259 deaths immediately and about 15,000 eventually.  The official estimates from the Indian government are 558,125 injuries, of which 38,478 were partial disablement and about 3,900 were severely and permanently disabled. There are also allegations that 390 tons of toxic chemicals have been abandoned at the plant that continue to leak and pollute the groundwater.

The disaster is also often cited as one of the worst examples of lack of corporate responsibility, employing tactics that reduce or delay financial liabilities.

Delay Court Cases
Some 26 years after the disaster, there are civil and criminal cases still pending in the United States District Court of Manhattan and the District Court of Bhopal.  In some cases, potential defendants are deceased and in many cases, the witnesses can not be expected to remember all the relevant details.

Divert Blame to Elsewhere
The current corporate owners, Dow Chemical Company, has an entire Web site dedicated to denying various allegations against it. The company position is that the disaster was the result of industrial sabotage.

Limit Liability
The company somehow managed to persuade the Indian government  in 1989 of freeing it of any liabilities by making a once-off payment that in no way covered the costs involved.

All of these actions are in stark contrast to the way in which BP is handling the Deepwater Horizon oil spill: rapid admission of guilt, unlimited resources to resolve the problem, and a massive prepayment of compensation.

The allegations of double standards are almost certainly not the result of different treatment for American victims versus Indian victims. They are primarily due to different companies having different corporate ethical standards.