Martha Stewart Questionnaire

Martha Stewart: Insider-Trading Scandal

Martha Stewart has repeatedly denied any wrongdoing, despite the indictment. Why is her company being damaged by the scandal?

The corporation, Martha Stewart Living Omnimedia, Inc. is being viewed as the moral agent that is accountable for its ethical conduct. Martha Stewart branded herself as the ultimate last word on perfect living, and her image is being tarnished through the scandal. The publishing department within the organization, her television show was already suffering declining ratings and internet operations were taking heavy loses. Her image and company depends too heavily on the name which is associated with Martha’s credibility and honesty. In addition, she wanted to ensure that Omnimedia stock price didn’t fall, which in the long term would hurt the company’s future earning. Martha’s actions could cost the company $160 million dollars. In the beginn

What role has Stewart’s image played in the insider-trading scandal?

Martha Stewart denied that she was engaged in any improper trading when she sold her shares of ImClone stock after being tipped off by her close friend and broker. She denied any wrong doings and stated that “she issued a stop-loss order to sell her stock if it fell below the $60 per share. In my opinion, Martha Stewart took an egoist approach in making the decision to benefit her own self interest. The perception from the business community and the feds believed that she had something to hide and would not be upfront about her dealings. In the end, her credibility and honesty are being questioned. People believed that the company could not survive without her leadership. Martha Stewart built an empire and became a household name