Question 1 Yes, Union Carbide owed its first loyalty and moral responsibility to the financial interests of its local community and employees who are affected by the gas leak.
So, to support my answer, it is helpful to look into the Kant’s moral theory. Act so that you use humanity, as much in your own person as in the person of every other, always at the same time as an end, never merely as a means [McFarland 2012] First, Union Carbide must not treat the shareholders simply as tools to maximizes their profit; in other words they must recognize a person’s value as a human being. Next, individuals and communities must treat people in ways that respect people’s basic rights. Finally, members of community work together to support and improve the institutions on which will help restore its reputation and reassure people who live near its plants that it is a good neighbour, and in the long run, will help its profits. According to [Brown 2010], these three values are called respect for human dignity. Union Carbide shouldn’t negligent with respect to the safety of people in the plant's environment and not maintaining the security regulation.
Besides, Union Carbide disaster at its plant in Bhopal, India, which killed thousands of people and injured several hundred thousand, focused world attention on the chemical industry. According to the ethic of caring approach argue that since we are interdependent upon others for our individual identity and well-being we have a moral obligation to consider the need, value and well-being of those with whom we have concrete relationship [Shaw, Barry & Sansbury 2009, p.80-81]. This led to the chemical industry's adopting an ethical code of caring. Union Carbide owe its responsibility by playing the roles as “care giver” to establish appropriate ethics training programs for their employees, establish monitoring mechanisms to