Defending Dow

First they came for Wal-Mart. Then they came for Coca-Cola.\nThe anti-capitalist forces on this campus are vicious but have wandering eyes. Now they are going after Dow Chemical Co.\nThe crux of their claim revolves around the disaster in Bhopal, India. For those who do not know what happened, here is the story.\nAt approximately midnight on Dec. 3, 1984, methyl isocyanate gas began to leak from the Union Carbide India Limited plant in Bhopal. According to the Union Carbide Web site, ensuing deaths totaled roughly 3,800, with several thousand more experiencing various levels of injury and disability (though these numbers are debated).\nThis was a tragedy that never should have happened. However, this evil does not justify reciprocal evil done to corporations that have no connection to the tragedy.\nThe “activists” will not tell you that there is a difference between Union Carbide and Union Carbide India Limited. At the time of the Bhopal incident, Union Carbide was roughly a 50 percent stakeholder in UCIL, but the rest was controlled by private shareholders. Furthermore, in 1994, Union Carbide sold its stake in UCIL and today has little involvement with the company. \nOne thing the activists try to say is Union Carbide does not care about what happened in Bhopal. Like many of the activists’ claims, this is not true.\nIn April 1985, Union Carbide made an offer of $7 million in aid to the victims but was spurned by the Indian government. In March 1986, Union Carbide offered a $350 million settlement that would generate $500 million to $600 million over the course of 20 years. Those suing the company in the U.S. approved the deal. Finally, in February 1989, the Supreme Court of India approved a final $470 million settlement. Within days of final court approval, Union Carbide and UCIL paid the full amount to the government of India. \nIn April 1992, right around the time Union Carbide started planning the sale of their 50.9 percent stake in UCIL, a charitable trust was established to ensure the company’s share of the funding to build a hospital in Bhopal and fund its operations for up to eight years.\nSo what does all this have to do with Dow Chemical? The answer is nothing.\nThe Bhopal incident happened before Union Carbide even became a subsidiary of Dow Chemical.\nThe claim seems to be that Bhopal makes Dow an irresponsible corporate citizen and therefore not legitimate enough to speak at the Kelley School of Business.\nBut to hold Dow’s CEO responsible for something that happened before the two companies had any kind of relationship is absurd.\nFurthermore, Dow’s manufacturing of napalm during the Vietnam War does not make it responsible for its use. You want to hold someone responsible for those effects? Look to the Pentagon.\nThe bottom line is the whiny activists need to lay off Dow. Otherwise, our campus will get a reputation as business-hating, and the whole University will suffer because of it.