Best Practice & Ethics
Dow accused of leaving investors in dark over Bhopal liabilities
Amnesty International
USA has accused Dow Chemical of secretly
pressuring the Indian government to
rid the company of its legal liabilities over the Bhopal toxic chemical
disaster, and has called on the US Securities and
Exchange Commission to open an investigation.
Sanford Lewis, an attorney who has represented Dow
shareholders including Amnesty International, said letters written by the
company provide “strong evidence” Dow believes legal liabilities connected to
Bhopal present a barrier to investing in India.
Lewis said the company has not disclosed this to its
investors, and is furthermore attempting to bypass the Indian courts by directly
pressuring the executive branch.
For instance, an 8 November 2006 letter from Dow to Ronen
Sen, the Indian ambassador to the US, requested that the Indian government
“withdraw its application for a financial deposit against remediation costs [for
Bhopal cleanup]. Certainly a withdrawal of application would be a positive,
tangible demonstration that the GOI [Government of India] means what it says
about Dow’s lack of responsibility in the matter”.
Amnesty's request to the SEC asks the regulator to
investigate whether Dow has failed to disclose pertinent information to
shareholders. Furthermore, Dow investors are being asked to support a
shareholder resolution requesting the company report on any steps taken to
address of the needs of survivors of the Bhopal disaster.
Amy O’Meara of Amnesty said: “Looking at these letters, it
seems that Dow’s refusal to address the human rights of the Bhopal survivors may
be having a serious, but undisclosed, financial impact. Shareholders have a right
to know the facts”.
Links
Amnesty International USA
Dow Chemical
Indian government
US Securities and Exchange Commission
May 2007
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