Martha Stewart's image played in the insider trading scandal



Martha Stewart's image played in the insider trading scandal

Introduction

Martha Stewart case is one of the most famous and publicized cases in the corporate history of America (Archie and Buchholtz, 2008). Martha Stewart case occurs at the same time as the Enron case. The case established a large number of media attention but it has extract more controversy in the legal, corporate and ethical study world than any other case. There are those who feel that Martha Steward was mistakenly charged while there are others who feel that she should take the responsibility for her acts.

The prestigious nature of the Martha Stewart insider trading case causes abundant research and script by educational and media experts. In this paper we try to found out the central moral and ethical issues surrounding the case. Additionally, the larger issue of insider trading will be study and moral details for the issue will be found and discussed. Lastly, the paper will end up with an idea for the most reliable ethical approach to insider trading.

Stewart's image played in the insider-trading scandal?

The main ethical issue in the case study observes the conduct of Martha steward during trial and her contribution in insider trading. The reality that Martha was provide information about the coming fall in share prices facilitate her to make the correct decision to sell her shares before the price go down (Archie and Buchholtz, 2008). There were no ethical issues in this aspect since she did in the best of how any investor would have acted. On the other hand, the main ethical issue in the case begins from her behavior after she was taken through SEC and the court. Martha Stewart refused that she was involved in any offensive or wrong deals when she sell out her shares of ImClone stock after being informed by her close associate and stockbroker. She made fictitious story of the reason why she had to sell her shares. She should have said the trust rather than falsehood lies to support her action (Ferrell, 2009).

Martha Stewart's Living Omnimedia survive if Stewart is convicted?

The organization should obtain a dynamic role on a yearly basis to guarantee that all workers get ethics training, and initiate new guidelines and dealings that will strengthen the company's point on ethics. As stated, Martha surrounded her with a group of trustworthy professionals who are detailed oriented as she is. She took great strides to make the brand more independent of her name. She ultimately resigned her position as CEO because she believed it was the right thing to do. Appointing a new CEO and a chairperson will help the organization to re-evaluate the future of the firm. Martha Stewart is still the principal shareholder and remains a seat on the Board of Directors, but will no longer run the day to day business at the firm. Change in management, and the strong brand name should help the organization weather the storm ahead as ...