Martha Stewart Ethical Behavior

Topics: Stock, Justice, Ethics Pages: 5 (1795 words) Published: January 11, 2009
Martha Stewart is an American Home decorator Icon surrounded by accusations of Inside trading, Obstruction of justice, False statements and Conspiracy. Her trial and investigation lasted for two years ending with her being found guilty of charges and convicted to spend time in jail, home arrest and probation. In this work I will expose Martha Stewart’s behavior and why her actions were considered outlaw, unethical and unprofessional. I will also explain which ethical behavior she used and how that affects her image, financial status, social position, fame and followers. 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. Who is Martha Stewart?

Martha Stewart’s case cannot be addressed the same way as any John Doe we found in the streets and the reasons are obvious, only all the women and a third of the male population in United States knew her or had brought her inside their homes by buying her products in stores, magazines, online or thru her TV Show. Martha Stewart was one out of five siblings. She was born in New Jersey in 1941 a daughter of two middle class polish immigrants. Martha was a very good student, versatile, activist in several organizations and a successful model. That helped her get a scholarship in Barnard College in New York where she graduated in two mayors, History and Architectural History. She became a stockbroker and married Andy Stewart a lawyer who graduated from Yale University. Years later she moved to Connecticut where slowly but surely build her empire. In 2002 charges of Conspiracy, false statement and obstruction of justice were filed against her, some other High ranking executives of ImClone and her broker, by the Security and Exchange Commission. Her reputation suffered a dramatic impact and her stocks in MSO drop radically, as low as $4.00 from their original value of $19.00 representing in millions of dollars in losses thru the years. After, Martha’s confession she spent 5 month in jail and the rest of her time in house arrest and probation. So, we have a beautiful, successful, talented and versatile middle class woman who came from a solid family. Base on her biography Martha work really hard to build her carrier, her life and organization to an incredible level. What is inside trading?

To be able to understand what happened in Martha’s Stewart case, it is imperative to know what is inside trading. Inside trading" is buying or selling a security while having material, nonpublic information about the security, in breach of a fiduciary duty or other relationship of trust and confidence. Inside trading may also include "tipping" such information, securities trading by the person "tipped," and securities trading by persons who misappropriate such information. Insider trading is a felony, and the SEC can levy large civil penalties for violations. In the Stock market environment rumors and buying or selling tendencies are the oscillators for transactions every day. Broker agencies and gigantic law firms handle thousands of transaction on a daily basis to keep our economic system running and growing. Those tendencies sometimes have been accelerated by more specific, valid and real information that only few people have access to. When that information is disclosed certain individuals take advantage of it and hurry to do changes, buying or selling their stocks in order to save or increase their assets. Sometimes leaders and executive of companies make the decision to sell their stocks when...
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