This website uses cookies to ensure you have the best experience. Learn more

Martha Stewart Essay

1219 words - 5 pages

Martha Stewart case study
Since this is an ethics course one might ask, did Martha do right or wrong? I can absolutely say that she did some very bad things: alleged insider trading and obstruction of justice. She was tried and convicted for obstruction of justice and she served her time. She should have been thrown in jail. She belongs in the same boat as the Tycos and Enrons, the law is the law and she tried to get away with it. She tried to cover-up evidence in a way by erasing phone logs and concocted a story with her broker on why they sold the stock when they did. Her actions as a CEO and as a human were horrible, despicable and yes very irresponsible. She tarnished her image forever, ...view middle of the document...

Unfortunately, she was lying. This was the start of her cover up scheme which once prosecutors vetted; used it as evidence to indict her on securities fraud. Later these charges got dismissed due to lack of evidence, but this was start of her stocks downward death spiral which hit an all time low of just under $ 6 a share in October 2002. Throughout the rest of that year and next year leading up to her indictment, Martha Stewart acted completely irresponsible. She started running scared not thinking about her company but thinking about her own skin and her company lost millions in revenue and sales and her actions actually got her into more trouble.
On June 4, 2003 Martha Stewart was indicted on nine counts of insider trading. One day later Martha responded back to the world by taking a full page add out in The USA Today and starting a new website, On the website Martha explained that the charges brought against her were entirely unrelated to the business of her company. She claimed her innocence and that she would fight to clear her name (Lauerman, 2003). Sixteen hours after the website was up in running Martha Stewart's lawyers claimed that the site had over a million hits and about 12,000 email messages, including one from a federal agent who encouraged Martha not to settle (Hays, 2003 ). Martha Stewart was trying to refresh her image. She was the face of this multi-million dollar company; down with her goes the company. Now was she completely innocent, of course not but she was winning the court of public opinion and slowly but surely her company’s stock prices started to go back up.
In the fall of 2003, MSO stock started to dip again as the prosecution started to build its case and info was leaked to the press. Martha stepped down from the company as CEO and went on a public relations spree topping it off with a Barbara Walters interview on 20/20. Now traditionally during high profile cases most people don't show up on the evening news right before the trial. How many times did we see Andrew Fastow, former Eron CFO, or Scott Sullivan, former WorldCom CFO, on the news. You didn't, that's because Enron and WorldCom were completely dead and they were trying to save their skin not the company's (Johnson, 2003). Martha Stewart was trying to save her company that she had built with her own two oven mitts, and a good PR campaign was needed because...

Other Papers Like Martha Stewart

Game Theory Essay

2056 words - 9 pages , the outcomes shown in the game matrix can be market share, level of profits, percentage of the vote, or numerous other variables. What should be noted is that if there is strategic interaction between economic agents, it can be modeled and analyzed using game theory. Here is a more relevant example. Assume that a professor assigns a project that needs to be completed by a pair of students, Martha and Stewart. Also assume the following facts

Enterpreneurial Leadership Essay

780 words - 4 pages Entrepreneurial Leadership Dorothy M. Oliver Professor Marietta Lewis Contemporary Business 508 January 23, 2012 Abstract Entrepreneurial Leadership Introduction (5 or 6 sentences) Profit-Oriented Entrepreneurial Martha Stewart, born Martha Kostyra, by all accounts is now living the American dream. Born to a middle class family and is now rich and successful. In 1997, she created Martha Stewart Living Omnimedia (MSLO). Omnimedia

Federal Prison

1181 words - 5 pages Federal prison comparison Christopher Gault CJA/234 December 19, 2011 Rollin Cook Federal prison comparison In this paper describe the prisons that certain individuals were sent to. I will make sure I compare and contrast the similarities and differences between these individuals. The individuals I will be discussing are Martha Stewart, Ivan Boesky, Michael Milken, Manuel Noriega, Timothy McVeigh, and Terry Nichols. All of these

Ethics and Moral Issues in Business

674 words - 3 pages choosing to do what is right. The expression “business ethics” can be used to describe the actions of individuals within an organization, as well as the establishment as a whole. An example of business ethics is when Martha Stewart was implicated in insider trading. That is when an individual wrongly utilize classified figures to promote investments (stocks, bonds, etc.) to an unsuspecting community. Martha’s inheritance is still unknown. We should

K-Mart Analysis

1412 words - 6 pages customers back. Buyer Power Normally, “when buyers individually are very small relative to total firm sales, buyers can threaten to switch, but such threats are not devastating to the firm. “However, Kmart buyers have switched – en masse. As mentioned earlier, Kmart has alienated many of its customers. Along with bad publicity regarding investigations of top executives and Martha Stewart, many Kmart customers believed that Kmart was leaving the

J.C.Penney Marketing Plan

832 words - 4 pages board he tried to revamp the brand to by giving it a snappier name. They made Ellen DeGeneres the face of the brand, and because Johnson believed that the sales and deep discounts were old, they announce the new JCP would have everyday “low prices.” JCP also partnered with Martha Stewart for a retail boutique within the store. In the end, J.C. Penney’s attempt to portray a younger, hip image failed tremendously. (2012) Johnson would only last two

Securities Fraud & Insider Trading

1254 words - 6 pages NASDAQ chairman Bernard Madoff, which caused up to an estimated $64.8 billion in losses depending on which method is used to calculate the losses is used prior to its collapse. In recent times the most popular form of Securities fraud has been the “Insider Trading” it has been happening since 1960’s and the most recent popular one has been of Martha Stewart during 2004. "Insider trading" is a term that most investors have heard and usually

Book Report Nancy Grace

1329 words - 6 pages sentencing. The book focuses on cases involving the rich, famous and infamous including Michael Jackson, Kobe Bryant, Scott Peterson, Jayson Williams, Martha Stewart and Robert Blake. Our justice system should be about the state seeking the truth behind the crime and the defense protecting its client. The author feels it should be about both sides seeking the truth. Defense attorneys often allow repeat offenders to walk free and indicate that they

Ethics in Corporate America

1209 words - 5 pages wealthy leaders, who were still willing to behave in an unethical manner, such as Steve Jobs and Martha Stewart amongst others. When leaders behave in an ethical manner, communicate the importance of ethics, and use punishment and reward systems to encourage ethical behavior, group norms of acceptable behavior and employees in a work unit will be less likely to engage in unethical behavior (Mayer, Aquino, Greenbaum & Kuenzi, 2012). The same

"The Corporation"

526 words - 3 pages blame varies from the corporation itself of the actors making the calls.Today we even see people becoming brands (like Martha Stewart) and brands that build cities (Celebration, Florida); even the seemingly ageless jingle, 'Happy Birthday to You' has been patented by entertainment giant AOL-Time-Warner. Even undermining democracy itself, the revolution that essentially gave birth to corporations. Investing billions into shaping public opinion

Securities Regulation

2738 words - 11 pages , and to give a sense of accountability to everyone. These laws that were created by Congress may negatively work for one party and positively affect another. In most cases these regulations are put in place to protect the investor and consumers, and to provide repercussions for a business that does not follow these regulations. Over the last few years, we have seen numerous businesses and individuals, such as Enron and Martha Stewart, who found

Related Essays

Martha Stewart Essay

1110 words - 5 pages Amongst some of the most famous and successful business women in America, Martha Stewart has been recognized for her successful business ventures in broadcasting, merchandising, publishing as well as a spokeswoman. Martha Stewart is a self-made entrepreneur with a fixation for money and never having enough. Stewart is a relentless workaholic who wished to earn every penny possible. Martha Stewart was known to be rude, profane, impatient and

Martha Stewart Essay

1471 words - 6 pages Martha Stewart Martha Stewart is an author, editor, and a homemaking advocate. Over the last two decades Stewart has held a prominent position in the American publishing industry. She was the author of several books, hundreds of articles on the domestic arts, editor of a national homekeeping magazine, host for two popular daytime television programs, and commercial spokeswoman for K-Mart (Wikipedia). At the height of her career, Stewart’s

Case Study

2575 words - 11 pages Martha Stewart (A) Group 2- Rohit Chawla (15A2HP448) Bhawana Choudhary Ghanshyam Kedia Vishal Prasad Ayush Singhal Prakhar Jain Akash Chitranshi Date of Submission 25.8.2015 Case Analysis Background: Martha Steward is a business connoisseur popularly known for the insider trading scandal at Imclone Systems. She is the founder and

Challenges Of Investigating And Prosecuting Inside Traders

1299 words - 6 pages of Martha Stewart. In 2001, Stewart dumped 4,000 shares of ImClone after having received word from her broker that the company’s CEO was liquidating his shares of company stock (Hoffman, 2007). The SEC caught on to this activity and launched an investigation which culminated in Stewart being convicted of conspiracy, making false statements, and obstruction of justice (“AP: Martha Stewart Convicted on All Four Counts”, 2004). In the end, Martha