Abstract

The case “Vizag Gas Leak Tragedy: Is LG Polymers to be Blamed for Negligence?” talks about the reasons for and the aftermath of the toxic styrene gas leak disaster that occurred on May 7, 2020, at a plant of LG Polymers India Pvt Ltd (LGPI) located on the outskirts of the coastal city of Vishakapatnam (Vizag) in the state of Andhra Pradesh (AP), India. The case documents the tragic impact that the toxic gas had on the local population, animals, and standing crops. It delves into the details of how LGPI was operating without proper environmental licences or adherence to certain environment guidelines provided by the government. The findings of the National Green Tribunal (NGT), India that handled environmental disputes with regard to the particular tragedy are provided. The NGT found the LGPI plant responsible for the accident and levied a fine of Rs. 500 million on it, apart from asking certain government agencies to prepare a restoration plan for the area affected. So, has yet another industrial disaster exposed the consequences of corporate greed and the fallacies in government control? Have the corporates or the government failed to learn any lessons from past industrial disasters?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the reasons for an industrial disaster
• Examine the ethical standpoint of the multinational corporation that causes an industrial disaster in a developing country
• Scrutinize the role of the government – before and after an industrial disaster
• Appraise the corporate and governmental responsibilities for preventing industrial disasters
• Assess the long-term impact of industrial disasters on human life and the environment

Keywords

Industrial Disasters; Business Ethics; Corporate Accountability; Multinational Corporations; Transnational Accountability; Labor codes in India; Brand Image; Corporate Greed; Government Control; Environmental Guidelines; Occupational Safety, Health, and Working Conditions; Government Negligence; Plan-Do-Check-Act’ (PDCA) management model; Justice; Compensation