CSR Press Release

BOSTON - The Chief Judicial Magistrate of Bhopal District Court India, has issued an order asking U.S.-based Dow Chemical Corporation to explain why it should not be required to have its subsidiary, Union Carbide, appear to face pending charges in a criminal case relating to the 1984 gas explosion which killed thousands of Bhopal residents. The Judge's order is in response to an application filed last February by the Bhopal Group for Information and Action.

"This decision of the Bhopal Chief Judicial Magistrate takes us closer to justice in the case of the world's worst corporate crime," said Satinath Sarangi of the Bhopal Group for Information and Action. "The Indian government that has been deliberately neglecting the task of prosecuting Union Carbide Corporation for last 13 years must now ensure that the notice is served upon Dow Chemical Company, USA, without delay."

Union Carbide, which was a 51 percent owner of the Bhopal pesticide plant, was acquired by Dow in 2001. The Indian courts have previously declared Carbide to be an absconder from justice due to its failure to appear to face the charges in Bhopal. .

The pending charges against Union Carbide include "culpable homicide not amounting to murder" associated with its recklessly substandard operation of the Bhopal pesticides plant, which exploded on Dec 2, 1984. The catastrophe led to thousands of immediate deaths and hundreds of thousands of long-term and serious illnesses. The victims' families have been frustrated by Union Carbide's absconding from justice and from Dow's denial of liability for its subsidiary's actions.

"This is a significant step towards finally compelling Union Carbide to address its unresolved criminal liability for the Bhopal disaster," said H. Rajan Sharma, a U.S.-based attorney who represents plaintiffs in a separate lawsuit against Carbide, relating to environmental contamination and pollution of drinking water supplies in Bhopal. "There is no legally valid reason why Dow Chemical cannot require its wholly owned subsidiary, Union Carbide, to submit to trial in India."

In August 2004, shareholders, including Boston Common Asset Management, filed a complaint with the US Securities and Exchange Commission alleging that Dow Chemical's management had engaged in misleading communications regarding its potential liabilities for Bhopal. For instance, the company had asserted on its website that it faced absolutely no potential liabilities for Bhopal as a result of its acquisition of Union Carbide. Subsequently, Dow removed that language from its website, while continuing to assert that it bore no "responsibility" for Bhopal.

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