Martha Stewart--Normative Ethics
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Martha Stewart--Normative Ethics
Martha Stewart, the CEO of Martha Stewart Living Omnimedia Incorporated, a multi-billion dollar enterprise, was indicted in 2003 for lying to federal investigators regarding her personal sale of over three thousand shares of ImClone company stock. She was found guilty on several counts and spent six months in a minimum security federal prison. As the CEO of a sizable corporation, Martha Stewart did not handle her indictment for lying to federal investigators responsibly. Stewart gave a series of public statements in June 2002, in which she denied having any non-public information regarding her sale of ImClone company stock. When applying the Utilitarian Theory to this case, it is obvious that Martha Stewart did not act in a responsible way that would have provided for the maximum happiness for the greatest number of people over the long term, such as her shareholders, employees and herself. She only thought about herself over the short term. Also when applying the Deontological Theory, subsequent to her indictment, Stewart did not consider the contractual rights afforded to her shareholders and employees. Most importantly, she also failed to recognize her ethical duty as CEO to everyone who had placed their trust, faith and future with her.
On June 6, 2002, The Wall Street Journal notified Stewart that it would publish a article detailing her sale of ImClone company stock. The following day Martha Stewart had her attorney release the following statement: “The sale was executed because Ms. Stewart had a predetermined price at which she planned to sell the stock. That determination, made more than a month before that trade, was to sell if the stock ever went less than $60.” On June 12, 2002 additional evidence was released to the public through the media that incriminated Martha Stewart. This information is believed to have caused the stock price of Martha Stewart Living Omnimedia Incorporated (MSLO) to drop over five percent in just one...
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