doosan final
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Transcript of doosan final
Environment Management
Presented by
• Nikhil Wankhede P-44• Priyanka Desai P-50• Tushar Chaudhari P-46• Seema Tapole P-31• Sandesh Rane P-30• Amit Jain
P-03
Doosan Oil Spill
Introduction• Doosan Electro-Materials Inc., a subsidiary
of the Doosan Corporation.
•Established in 1974
•Industrial leader in the global market.
•Produce high-quality copper clad laminates
(CCLs).
•Makes 80% of South Korea's circuit boards,
and Korea's most popular beer and whisky.
Contd...
• Owns franchises for Coca-Cola, Kentucky Fried
Chicken, and other foreign consumer goods.
• Located in Kumi which is close to Taegu city,
third-largest city in South Korea.
• The Naktong River flows along the city of
Taegu and supplies tap water to over 10
million homes.
• In 1990, the sales for the fiscal year totaled
over $2.9 billion with net profits of $30.6
million dollars.
• In 1991, the profits of Doosan Corporation
were affected by a significant environmental
incident which occurred in March, 1991.
The Incident• On March 14, 1991, the Doosan Electro-Materials
Inc. dumped 320 tons of phenol waste into the
Naktong River.
• South Koreans turned on their tap water and were
overcome by a repulsive stench caused by a
highly toxic form of phenol
• Phenol leaked overnight from a storage tank in
the factory.
Contd...• An underground pipe leading from an outdoor
tank to the Doosan factory burst causing pure
concentrated phenol to leak into the river.
• The toxin travelled through the reservoir system
of Taegu.
• Phenol is a highly toxic chemical which is known
to cause cancer or damage to the nervous
system.
Contd...• The phenol poisoning caused hundreds to
thousands of people to become violently
ill.
• Naktong River also provides habitat for a
variety of wildlife.
• Animal species also affected by the phenol
leak
Issues
Who is responsible? • Both the South Korean government, and the
company.
• The government should enforce environmental
guidelines, and take initiative when outside
factors threaten the environment.
• The Doosan Corporation also has a
responsibility to the people
Compensation & penalties
• The compensation to the victims and to
determine the penalties of Doosan.
• The company was ordered to shut-down
for a very short period of time.
• Doosan Electro-Materials, Inc. has a
monopoly on electronic goods
Clean up of wastage• How to clean-up the waste
• How could Doosan and other companies
eliminate the possibility of future problems
• This particular incident shed light on other
companies in the area who were illegally
dumping in the river.
Actions• One-month suspension of operations
• The Minister of Environment, Huh Nam-hoon, was ordered to resign , and was replaced by former health minister, Kwon E-hyock
• Also, 7 government officials and 8 company executives were arrested
Contd…• The chairman of Doosan Corporation, Park
Yong-kon, stepped down from his position, and Doosan Corporation was forced to pay around $30 million in compensation to the victims.
• Two challenges in the decision of this case– The Water Quality Preservation Law and
related legislation were vague and limited– Thirty day suspension of the Doosan factory
Law
• Environment Improvement Expedition Law
• Individuals who break environmental laws will be jailed for life.
• Interministerial commission to tackle environmental issues.
• The commission's job is to, "coordinate government measures for sustainable development and environmental protection
Contd…• The four broad trends came after the
incident are:
– International conventions
– Developing environmentally friendly
technologies
– Greater consensus and cooperation
– Korean citizens are becoming more aware
Reactions of Public • Hundreds of people demonstrated in the
streets shouting anti-government slogans.
• Demonstration in Pusan provoked one
hundred people to dump sixty bottles of OB
brand beer of Doosan into the streets.
• Boycott of Doosan products as well as their
international affiliates of Coca-Cola, Nescafe,
and Kentucky Fried Chicken.
Contd...• Approximately 12,000 citizens and 30,000
grocery stores filed compensation against
the Doosan Corporation.
• The Taegu city government filed suit
against Doosan Electro-Materials for
remuneration of its losses in tap water
charges.
Harsh reality• The Doosan plant was allowed to reopen for
production only a couple weeks after closing.
• The Ministry of Trade and Industry (MTI)
asked the Ministry of Environment (MOE) to
allow Doosan to continue production.
• Other dependent companies could suffer
setbacks of more than $400 million due to
closing of plant.
Contn...• Many foreign buyers rely on Doosan's specialized
electronic exports making it difficult for them to
replace the product.
• Officials argued, "if suspension of Doosan's
factory operations drags on, 883 firms are
expected to face operations cutbacks.
• A second phenol spill occurred into the Naktong
River.
Contn...• This simply showed the carelessness of
both government and company officials.
• Government actions illustrated their
economic priorities over environmental
interests.
Thank you