Union Carbide Corporation
Union Carbide Corporation is a chemical industry located at Bhopal city in India and a subsidiary corporation of the Dow Chemical Company of the United States. Currently, the corporation is under the ownership of Madhya Pradesh administration, thus classified as a municipal corporation. The corporation is among the world’s leading producers of plastics, polyethylene, and ethylene glycol.
Answer to the question:
Following the Bhopal tragedy that occurred in December 1984 in Bhopal city claiming over 3800 lives, the corporation devised market capitalism models still valid to date, which would enable it to react to strong economic forces. Firstly, the government formed the MoEF body that was an inclusion of all chemical industry firms whose sole purpose was to secure employee’s public health against hazardous industrial practices. The action centrally placed the firms as ministers of social problems, which is an element of the market capitalism model of competitive markets. Secondly, the company apportioned some of its assets away from reach by the 1984 disaster victims as well as offering its top executives and quick shareholder profits. The above plans of restructuring and divesting the company hence enabled the company to accumulate wealth and have direct control over production resources.
Union Carbide Corporation, after the 1984 disaster, opted for economic survival techniques among its stakeholders along with market capitalism. Initially, on the customer’s stake, the company heads initiated a compensation program for the families of victims of the industry in Bhopal city through aiding them with a flat sum that will keep their livelihoods going. The compensation plan was targeted to the company’s customers, who form an integral part of the success of a firm. Moreover, the Indian government took up the collaborative duty with the company in disclosing all information regarding the monstrous incident so that potential investors can free from fear of their continued investment in the company. The information entailed the reasons behind the catastrophe, plans to secure the firm from future tragedies, and the arrest followed by prosecution of culprits involved in the scene.