By a professor at IIM Kozhikode

1. Addressing
Environmental
Disasters
Finding the Balance

2. Moral Development & Moral
Assessment
• We can approach from the
standpoint of and & use both
perspectives to clarify goals & weigh the options.
• Addressing environmental disasters brings us back to ‘virtue
ethics’.
• The six ways in which virtue ethics applies in business ethics
are as follows:

3. 1.
• Who we are as persons is inextricably linked to our co-workers &
to our work-life.
2.
• Strive to do our best, not just falling in line & keeping our nose
clean.
3.
• Accept the particular obligation that come with the job & a sense
of loyalty to our employers.
4.
• If the standards & values of the company fall short, then we can
rely on our sense of integrity to get us back on track.
5.
• Make a decision what seems right, fair or just.
6.
• The whole picture – moral parts of our life are interconnected,
not fragmented. Our professional lives & our personal lives are
linked on the ethical level.

4. The Exxon Valdez Oil Spill
• 1989, 23rd March : The Exxon Valdez departed the Alyeska
Pipeline Terminal in Valdez, Alaska loaded roughly 54 million
gallons of crude oil.
• 1989, 24th March : Exxon Valdez tanker runs aground on
Bligh Reef, spilling more than 11 million gallons of crude oil
in Prince William Sound.
• 00:28 - Marine Safety Office Valdez receives notification from
Exxon Valdez
• 12:30 - Skimmers begin recovering oil near the Exxon Valdez.
• 18:00 - Dispersant trial application is conducted
• 1989, 25th March : Burn test conducted near Goose Island
• 1989, 26th March : Dispersant application conducted with Air
Deliverable Dispersant System (ADDS) system

5. Probable Causes of Grounding
• Failure of the third mate to properly maneuver the vessel,
possibly due to fatigue and excessive workload
• Failure of the master to provide a proper navigation watch,
possibly due to impairment from alcohol
• Failure of Exxon Shipping Company to supervise the master
and provide a rested and sufficient crew for the Exxon Valdez
• Failure of the U.S. Coast Guard to provide an effective vessel
traffic system
• Lack of effective pilot and escort services

6. Cleanup Activity
• Cleanup activities began in 1989 and continued each
summer till 1992
• More than 11,000 workers, 1,400 vessels, and 80 aircraft
were involved for cleanup of oil spill
• Exxon spent more than $2.5 billion on cleanup costs
• Cleanup Methods :
• Burning
• Mechanical Cleanup
• Chemical Dispersants

7. Ecological Impacts
• The 10,000 square miles (25,900 square kilometers) and
1,500 miles (2,414 kilometers) of shoreline covered with oil
encompassed a national forest, four wildlife refuges, three
national parks, five state parks, four critical habitat areas
and a state game sanctuary
• The following animals were killed by the spill:
• 250,000 seabirds
• 2,800 sea otters
• 300 harbor seals
• 250 bald eagles
• 22 killer whales

8. Ecological Impacts
• The 10,000 square miles (25,900 square kilometers) and
1,500 miles (2,414 kilometers) of shoreline covered with oil
encompassed a national forest, four wildlife refuges, three
national parks, five state parks, four critical habitat areas
and a state game sanctuary
• The following animals were killed by the spill:
• 250,000 seabirds
• 2,800 sea otters
• 300 harbor seals
• 250 bald eagles
• 22 killer whales

9. Litigation Timeline
1989
• Fishermen, land and business owners, and others harmed by
the spill begin filing civil lawsuits against Exxon. The cases are
eventually combined for the trial
1994
• A jury awards the plaintiffs $287 million in actual damages and
$5 billion in punitive damages. Exxon vows to appeal to the
Supreme Court if necessary
2001
• Federal appeals court rules against Exxon on most points but
agrees that the $5 billion verdict is excessive. Returns the case to
a lower court to determine a new amount
2002
• U.S. District Judge Russel Holland reduces the punitive damages
award to $4 billion
2003
• The justices provided a guideline that punitive damages should
be less than 10 times the actual damages

10. Litigation Timeline
2004
• Holland orders Exxon to pay $4.5 billion in punitive damages
2006
• A three-judge panel of the 9th U.S. Circuit Court of Appeals
cuts to $2.5 billion the amount Exxon should pay in damages
2007
• The Appeals Court declines to reconsider the damages
amount. Exxon appeals and the Supreme Court agrees to hear
the case
2008
• The Supreme Court orders lower courts to reduce $2.5 billion
punitive damages award to no more than $507.5 million

11. RIP Exxon Valdez
Exxon Valdez/Exxon
Mediterranean/Sea River
Mediterranean/S/R
Mediterranean/Mediterranean
/Dong Fang Ocean/Oriental
Nicety being dismantled in
Alang, India, 2012

12. Bhopal Gas Tragedy
• Following is the chronology of the events:
• December 3, 1984: Toxic methyl isocyanate gas releases from Union
Carbide India Ltd’s (UCIL) pesticide plant in Bhopal killing about 15,000
people and injuring at least five lakh others. Millions were left sick and
the affected passed on the harmful effects of the gas to the next
generations.
• December 4, 1984: Warren Anderson, the chairman of Union Carbide, is
among nine people arrested. But he was freed on bail of $ 2,000, upon a
promise to return. Union Carbide is named as the 10th accused in a
criminal case charged with culpable homicide.
• February, 1985: Indian government files claim for $ 3.3 billion from
Union Carbide in a US court.
• 1986: US District Court judge transfers all Bhopal litigation to India.
• December 1987: CBI files chargesheet against Warren Anderson and
other accused, including UCC (USA), Union Carbide (Eastern) Hong Kong,
and UCIL. Summons served on Anderson and UCC on charges of
culpable homicide.

13. Bhopal Gas Tragedy
• February 1989: CJM, Bhopal, issues non-bailable warrant of arrest against Warren
Anderson for repeatedly ignoring summons.
• February 1989: Indian government and Union Carbide strike an out-of-court deal
and compensation of $ 470 million is given by Union Carbide.
• February - March 1989: Public protest against the unjust settlement followed by
filing of a number of review and writ petitions against the settlement in the
Supreme Court by the Bhopal Gas
• 1992: Part of $ 470 million is disbursed by the government among Bhopal gas
victims.
• February 1992: Anderson declared fugitive by law for ignoring court summons.
• November 1994: Despite numerous petitions by survivors’ groups, the Supreme
Court allows Union Carbide to sell stake in UCIL to McLeod Russell (India) Ltd of
Calcutta.
• September 1996: Supreme Court dilutes charges against Indian officials of Union
Carbide India Limited -subsidiary, majority owned by Union Carbide Corporation
[UCC] - partly on grounds that culpability lies with UCC.
• August 1999: Union Carbide announces merger with US-based Dow Chemicals.

14. Bhopal Gas Tragedy
• November 1999: International environment watchdog Greenpeace tests soil,
groundwater and wells in and around the derelict Union Carbide factory and
finds 12 volatile organic chemicals and mercury in quantities up to six million
times higher than expected.
• November 1999: Several victims and survivors’ organisations file an action suit
against Union Carbide and its former CEO, Warren Anderson, in federal court of
New York, charging Carbide with violating international human rights law,
environmental law, and international criminal law.
• February 2001: Union Carbide refuses to take responsibility for UCIL’s liabilities in
India.
• January 2002: A study by Srishti and Toxics Links finds lead and mercury in breast
milk of nursing mothers in communities near the plant.
• June 2002: Bhopal gas tragedy survivors launch a protest in New Delhi when
they hear the Indian government plans to drop charges against Anderson.
• August 2002: Charges of culpable homicide are maintained against Anderson by
Indian court, which demands his extradition to stand trial. Meanwhile, a British
newspaper reports that Anderson is in New York after US authorities say they are
unable to locate him.

15. Bhopal Gas Tragedy
• October 2002: Protests to clean up former UCIL factory site in Bhopal that
activists say contains thousands of tonnes of toxic waste.
• May 2003: The Indian government formally conveys its request for extradition of
Anderson to the US.
• March 2004: A US court says it could order Dow Chemicals to clean soil and
ground water in the abandoned factory site if the Indian government provides a
no objection certificate. The Indian government forwards the certificate to the
United States.
• June 2004: The US rejects India’s request for extradition of Anderson saying the
request does not “meet requirements of certain provisions” of the bilateral
extradition treaty.
• July 19, 2004: India’s Supreme Court orders the Central Bank to pay out more
than 15 billion rupees, part of the original $ 470 million received as
compensation kept in the account since 1992.
• October 25, 2004: Bhopal gas victims protest the failure of the government to
pay victim’s compensation.
• October 26, 2004: India’s Supreme Court sets deadline of November 15 to pay
out the rest of $ 470 million paid by Union Carbide as compensation.
• June 7, 2010: All eight accused, including the then Chairman of Union Carbide
Keshub Mahindra, in the Bhopal Gas disaster case convicted by a court.

16. • THANK YOU!