Int'l Business - Research Paper Example

It is also important to note that Union Carbide could have developed and implemented an effective alarm and early warning signal system in order to raise the alert for hazardous leaking of gas. This was however, not presents at the factory and resultantly firm was involved in one of the worst industrial disasters in the world. Apart from this, protocols should have been set in order to ensure the swift evacuation of the persons working at the plant as well as people living in and around the plant area in order to ensure that damage was minimum. (Muller) In all, Union Carbide should have in place an effective safety and security mechanism in order to deal with such incidents. 2) Corporate response to such an incident always requires that the firm clearly establish that all the necessary requirements to meet such challenges have been put in place.

By having an effective system and plan in place, the overall response could have been different because firm could than claim that all the safety procedures were in place and as such the incident was something which was beyond the control of the firm. Such a planning therefore would have allowed Union Carbide to actually improve its reputation and goodwill within the Indian and global market. Apart from this, firms can find a common ground to develop the actions of mutual value and interest which could ultimately increase the overall good will and image of the organization within the communities in which they operate.

(Clouse and Riddell) 3) Union Carbide has the history of environmental damage as well as inadequate safety procedures in place. Though the firm may be one of the largest industrial groups in United States however, considering its overall track record of not following the safety and environmental protection laws and regulations, the overall implications for the construction of a new plant in Malaysia could be significant. One of the key areas to be highlighted is whether the firm would be able to comply with the local as well as international safety standards while constructing a new plant.

As mentioned in the case that there will be no double standards and all the safety and security requirements will be fulfilled suggest that the overall implications may not be as sever as they were in case of Bhopal. It is also critical to note however, that Kerteh is oil and gas city for Malaysia with very little population therefore if such an incident occurs again, the overall damage in terms of human causalities will be relatively less. Since Bhopal was a densely populated city as compared to Kerteh therefore the overall implications in terms of causalities may be low however, the damage to environment can be relatively higher.

(Shrivastava and Siomkos) 4) Union Carbide is still the center of attraction because of its track record of violating the safety regulations. The discovery of highly toxic material near the Olympic site in Australia as well as the subsequent fires at the Indian plant do indicate that the firm is still not following the strict safety and security requirements. These incidents indicate that Union Carbide, in a bid to become cost effective is ignoring basic safety and environmental protection requirements to be put in place. (Kurzman).

It is therefore critical to note that the cost reduction at the cost of human and environmental catastrophe may