A DYNAMIC-MODEL OF ORGANIZATIONAL DECISION-MAKING - CHEMCO REVISITED 6 YEARS AFTER BHOPAL

The authors develop a dynamic model of organization decision making th at is motivated by the decision-making process at a multinational chem ical firm, given the pseudonym Chemco, that they visited shortly after the Union Carbide explosion in Bhopal, India, and again six years lat er. Two major decisions were taken by Chemco that could be attributed in large part to the Bhopal disaster: the divestiture of one of its pl ants and the sale of a business. An analysis of those actions by Chemc o underscores the importance of reference points and constraints in in fluencing organizational choices.