Martha Stewart's Unethical Behavior

Paper Summary:

The paper describes Martha Stewart's insider trading when she sold her stock in the ImClone company. The paper details her subsequent denial and deceit. The paper discusses how under any ethical system; from a normative perspective, a utilitarian point of view and a deontological standpoint, Stewart acted wrongly.

From the Paper:

"On December 27, 2001, Sam Waksal, the key shareholder in ImClone, ordered his broker to sell all his stock in the company. The broker, who was also Martha Stewart's broker, told his assistant to phone Stewart. The assistant left Stewart a message about Waksal's sales, suggesting she might do the same. Stewart called the broker back and ordered him to sell.
"ImClone stock plummeted and Waksal was investigated. The SEC learned of Stewart's sale, and called Stewart to a formal interview. Before the interview, Stewart and her broker conspired. Rather than admitting that the broker gave Stewart an inside tip, they invented a story of a "standing sell order." Stewart gave this story to the government in formal interviews. After a lengthy investigation, Stewart on various charges on June 4, 2002, although not for insider trading."

Sample of Sources Used:

• Andre Claire and Manuel Velasquez. "Calculating Consequences: The Utilitarian Approach to Ethics." Markkula Cetner for Applied Ethics. Santa Clara University. Originally published in Issues in Ethics, 1:2 (winter 1989). 2005, accessed Dec. 8, 2006. Available at <http://www.scu.edu/ethics/publications/iie/v2n1/calculating.html>. Internet.
• Astarita, Mark J. "The Story of Martha and The Telephone Call: Proving Aesop Right Once Again - We Often Give Our Enemies the Means of Our Own Destruction." SECLaw.com. 2006, accessed Dec. 9, 2006. Available at. <http://www.seclaw.com/docs/marthastewartindictmentseccivil0603>. Internet.
• "Deontological Ethics." Undated, accessed Dec. 9, 2006. Available at <http://www.mc.maricopa.edu/~bfvaughan/text/lex/defs/deontological.html>. Internet.
• Hays, Constance. "Prosecuting Martha Stewart: the Overview; Martha Stewart Indicted by U.S. On Obstruction'" New York Times. June 5, 2003, accessed Dec. 8, 2006. Available at <http://query.nytimes.com/gst/fullpage.html?res=9402E6D91E30F936A35755C0A9659C8B63&sec=health&pagewanted=1> [part 1]; <http://query.nytimes.com/gst/fullpage.html?res=9402E6D91E30F936A35755C0A9659C8B63&sec=health&pagewanted=2> [part 2]; <http://query.nytimes.com/gst/fullpage.html?res=9402E6D91E30F936A35755C0A9659C8B63&sec=health&pagewanted=3> [part 3]. Internet.
• "Martha Stewart Responds to Indictment on New Website." Be Specific. June 5, 2003, accessed December 10,2006. Available at <http://www.bespacific.com/mt/archives/003020.html>. Internet.

More papers on Martha Stewart's Unethical Behavior:

• Analytical Essay # 134862 : "Unethical Behavior in the Workplace"
• Essay # 86456 : "The Trial of Martha Stewart"
• Essay # 69380 : "Entrepreneur Questions"

APA Citation:

MLA Citation: