Tugas softskill 1

1.      What are the ethical issues raised by this case?

Jawab :

The issue is company try to reduce the cost by using several cost cutting program. In this program, there are many things change to be worse such as the number of equipment operators on each shift had been reduced from twelve to five and many of the best operators quit and replaced with workers whose education was below that required by company. The effect from this program is 2000 people death and 200.000 other peole get injure by accident which happened in December 1985 at Unioan Crabide Corporation.

2.      Did the legal doctrine of “limited liability” apply to protect the shareholders of Union Carbide Corporation (U.S.)?

Jawab :

No, The shareholders didn’t protected by legal doctrine of limited liability. The company can’t pay the compensastion of accident which killed 2.000 person and 200.000 others get injured. The compensation had amount around $35 Billion, meanwhile the liability of company reported only about $200 million. The company’s stock tumbled and the shareholders losses of more than $1 billion. Finally, Company was close because they were forced  to bankrupt.

3.      Were the indian operations, which were being overseen by the managers of Union Carbide Corporation (U.S.), in compliance with legal or moral or ethical standards?

Jawab :

Indian operations is legal and has moral point because they get blessing from indian government and  Indian operations has a good purpose which is to increase production of the pesticides, it desperately needed to raise food for india’s huge population. But, they are didn’t do ethical standards well because for reduce costs they make a program which called several cost-cutting programs. In this program, the company try to reduce costs without considered a risk of the program in the future.