Preview

Martha Stewart Case Study

Powerful Essays
Open Document
Open Document
1740 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Martha Stewart Case Study
Throughout the case study on Martha Stewart, evidence provided illustrates how public relations can alter the image of a national personality in both negative and positive lights. In particular, the case illustrates how Stewart’s initially poor public relations responses tarnished her image and, only after changing her tactics, did she actually work toward correcting the problem. Ultimately, the Martha Stewart case is pivotal in illustrating how the power of public relations, if used correctly, can revamp a person’s public portrait----even if formal charges of criminal activity exist.
Martha Stewart, a “model student” and iconic legend of the kitchen, has been world renown for her success and outspokenness in the past; however, upon receiving allegations of insider trading, Stewart actually became a ‘silent diva’ by inevitably isolating herself from all media and society (Seitel, 17-18). Although this initial public relations response helped Martha avoid responding to the pressing questions from the media, I believe that her silence was counterintuitive to proving her innocence in the sense that her natural personality was “typically feisty” (18). Using logical thinking, most Americans accused of a crime that they were not responsible for would protest, appeal, and flat out become outraged----actions that an already “feisty” Stewart surely would have carried out had she truly believed in her innocence. By remaining silent and withdrawing from her daily life on talk shows, lectures, and as CEO, she in fact confirmed the already held perception of her guilt. By essentially shutting out the public, Stewart in effect was violating the public relations principle of “continuous two-way communication to prevent alienation and to build relationships” (6). Essentially the alienation of a “woman who had seemed to be everywhere [and] was now virtually out of sight” allowed for the ‘experts’ to create their own takes on what she was doing with her spare time



Cited: Martha Stewart Living Omnimedia, Inc. “On September 15th, Martha Stewart Throws Open the Gates of Her Bedford Farm to Celebrate the New Season of ‘The Martha Stewart Show.’” 27 August 2008. Martha Stewart.com. 16 September 2008. http://phx.corporate-ir.net/phoenix.zhtml?c=96022&p= irolnewsArticle&ID =1193763&highlight= -------------------------------------------. “Fine Living Network and Martha Stewart Whip Up Whatever, Martha!, A Frothy, Funny Original Series Showcasing Martha Stewart 's Most Memorable TV Moments.” 11 August 2008. Martha Stewart.com. 16 September 2008. http://phx.corporate-ir.net/phoenix.zhtml?c=96022&p=irol-newsArticle&ID=1194420 &highlight= Robertshaw, Nicky. “PR exec hit with insider trading on Crowley Deal (Anthony M. Franco).” August 1986. BNET Online. 14 September 2008. http://findarticles.com/p/articles/mi_hb4298/is_198608/ai_n15005077 Rosen, Ellen. “Rise in Insider-Trading Cases Shows the Perils of Pillow Talk.” 24 August 2007. The New York Times Online. 14 September 2008. http://www.nytimes.com/2007/08/24/business/24trading.html

You May Also Find These Documents Helpful

  • Powerful Essays

    Insider trading mostly occurs by individuals close to the upper level management of an organization. This type of unethical behavior undermines the stability of the organization. In the ImClone scandal where Martha Stewart was indicted for her involement, the stability of her company suffered and the companies and people associated with Ms. Stewart suffered as a result of her decision. In this essay I will examine the parties that were privileged to knowing ImClone’s stock was going to drop and those who did not know. I will look at the effects of Ms. Stewart’s action, what she could have done different, and the consequences of her actions. Ethical and public issues must be considered when a business executive makes a decision that could affect the entire company.…

    • 2450 Words
    • 10 Pages
    Powerful Essays
  • Best Essays

    This case analysis offers facts and opinions about Martha Stewart committing insider trading. It will examine how Martha knew about ImClone stock dropping and how she uethically spiraled out control. Severel articles will be used to support how Martha was sentenced and…

    • 2080 Words
    • 9 Pages
    Best Essays
  • Satisfactory Essays

    1. The situation that I chose for this assignment was, Martha Stewart being arrested for lying about a stock sale. “Stewart, 63, was convicted in March of lying to investigators about why she sold ImClone stock in December 2001, just before the stock price plunged” (NBC News, 2004). Martha is a very intelligent, business woman, but she made a bad decision.…

    • 296 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Martha Stewart Fraud Case

    • 374 Words
    • 2 Pages

    In 2003, Martha Stewart was facing prison time and her empire in domestic art was at risk because of “nine-count federal indictment” which she was charge will “perjury and conspiracy” because of a “high profile stock trading scandal” (Hurtado, N. P. (n.d.). James Comey, a U.S. Attorney, said that “she brought trouble on herself and her company by lying to her shareholders and investors in an attempt to cover her tracks and keep her stock from plummeting” (Hurtado, N. P. (n.d.). Comey believe that the criminal case was all about lying and he said that Martha is being prosecuted for what she did and not who she is. When she went to court she plead not guilty. Stewart was also charge with “securities fraud stemming” (Hurtado, N. P. (n.d.).,…

    • 374 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Martha Stewart Case

    • 1028 Words
    • 5 Pages

    Evidence still suggests otherwise. CNN Money reported on May 20, 2004 that "the company plans to downplay the "Martha Stewart" on the cover of its flagship Martha Stewart Living magazine. It will strip the tag line "From the Kitchens of Martha Stewart Living" from the company's year-old Everyday Foods magazine. And the askMartha syndicated newspaper column is now called "Living", and no longer carries Martha Stewart's byline."…

    • 1028 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Most people that are in high profile positions would rather receive positive accolades for their…

    • 1599 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Comm 305

    • 1532 Words
    • 7 Pages

    The goal of this course is to provide you with an understanding of the nature of the profession and practice of public relations. This course covers (1) the development and history of the public relations profession, (2) major theories that inform public relations, (3) the role and position of public relations in the organization, (4) how and where public relations is practiced in contemporary society, (5) the four-step process of public relations, (6) the skills and requirements for success in the profession, and (7) ethical implications and legal issues for public relations practitioners.…

    • 1532 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    LaThis article found in the Wall Street Journal applies to insider trading. Thomas Conradt and David Weishaus bought shares of SPSS Inc. after illegally discovering about their near future acquisition of IBM. They believe Conradt was informed by his roommate at the time in 2009. Conradt then informed Weishaus but asked him to keep quiet claiming “we gotta keep this in the family” and “I don’t want to go to jail”. The two men were arrested last Thursday, November 29, 2012. It is believed that Conradt, Weishaus and three other brokers made more than one million dollars from the information. They each face up to twenty years in prison.…

    • 277 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    They believed they were out to get her because she was a celebrity. If it was anyone else, they would either let it go or they would have punished them more. According to other researchers and prosecutors, they believed Martha got lucky. “it has been realized that a celebrity, a wealthy business person, or a political leader can get off more easily and die to their ability to pay the jail-out, they usually od not get the suffering they should feel and deserve in the prison life, instead they pay the find demanded and exchange in small stiff cell bed in jail for a $10,000 cushion at the privacy and safety of their own home while watching their favorite TV show and having an expensive snack” (source). Martha was able to pay her out because she had the money Bututs argued that it is not fair, because poorer people couldn’t afford nearly as much as Ms. Stewart. It makes sense though. As Robert Blakc (Barreta) use to say, “Don’t od the crime, if you can’t do the time.” Everyone, rich or poor, should pay the same amount and jail time should be the…

    • 659 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    But who is Martha Stewart and what is her background? I personally didn’t know who Martha Stewart was until her case came out to the public, still until today I never had the opportunity to analyze her case; so we can all have a better idea of who we are talking about it is necessary to do some research on this famous person. Also I will discuss certain elements that had direct influence in her case; for example the law she broke, also the individuals and institutions involved in this case and their rolls and possible unethical behavior.…

    • 1795 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Individual Project Unit 5

    • 797 Words
    • 3 Pages

    McLean, B., & Elkind, P. (2004). Smartest Guy in the Room: The Amazing Rise and Scandalous Fall of Enron (2th ed.). Portfolio Trade.…

    • 797 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    I love to cook, so finding and trying out a new recipe for me is great. When I have the time, I love to watch cooking shows on TV, so what comes to mind for me, is the Martha Stewart scandal in 2004. In 2001, Martha Stewart had received an inside tip from her stockbroker that her stock, ImClone Systems was going to fall, so she sold her almost 4,000 shares in the company to avoid an almost $46,000 loss, the next day the stock fell 16%. Over the next few months, Martha's activies were being investigated, she was quesioned and later indicted on nine counts, including securites fraud and obstruction of justice. There was a six week trial in january 2004, in which Martha Stewart was convicted and sencentance to five months in prison. She…

    • 304 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Martha Stewart Ethics

    • 1427 Words
    • 6 Pages

    Before one can make an informed decision as to whether Martha Stewart's handled the incident responsibly or whether or not her actions were moral or immoral, one must first understand the basics of ethics and understand whose rights are involved and how they were affected. Then one must also examine who will be helped and who will be hurt by her actions and then make a decision based on the information and personal values as they relate to the issue. Martha Stewart was charged in 2001 with making false statements, conspiracy, and obstruction of justice during her sale of ImClone the day before the FDA announced its refusal to review a new cancer drug. This sale was scrutinized by authorities because it is illegal to have inside information and trade the stock before the bottom drops out.…

    • 1427 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    A very famous scandal that has embedded ourselves in our history is the Martha Stewart scandal of 2003. Martha Stewart is a true success story of the American dream in effect. Starting as a housewife, Martha created her career by turning her previous business experience and career into a household name and an enterprise. Having established Martha Stewart Living Omnimedia, Inc. (MSO), which handled everything from print to television to merchandising, with her business partner Sharon Patrick in 1997 the company went public in October of 1999. She became entangled in an insider trading scandal only 4 years later.…

    • 612 Words
    • 3 Pages
    Good Essays
  • Better Essays

    "I 'll be back ….I 'm not afraid. Not afraid whatsoever. I 'm very sorry it had to come to this." (Gasparino, 22). Those were the words that Martha Stewart said on the courthouse steps on July 16, 2004, as she had just been sentenced to five months in prison. A defiant Martha Stewart was trying to instill confidence in her stock holders and save a sinking ship, her company, Martha Stewart Living Omnimedia Incorporated (MSO). That day her companies stock closed at $ 12.25 a share a 36 % jump. (www.forbes.com) Therefore as one asks the question; as a CEO did Martha Stewart handle the indictment responsibly; you could easily argue that at least on that day she did. She made her shareholders a bunch of money. Isn 't that the bottom-line, isn 't that what a CEO is supposed to do? If you take Martha Stewarts 's actions from when she got indicted to the day she walked out of prison and ask the same question again you will find out the answer is yes and no. Now I 'm not trying to ride the fence here but I will take this question and ask it again and again in chronological order and you will start to notice "a tale of two Marthas" as she goes from saving her skin to trying to save her company.…

    • 1887 Words
    • 8 Pages
    Better Essays