Martha Stewart Unethical Practices - Essay Example

? Martha Stewart unethical practices May 28, Martha Stewart is one of the popular business leaders of our parent’s generation. The research focuses on the Martha Stewart’s rise to business icon status. The research focuses on her downfall from her unethical act. Martha Stewart was able to muster enough strength to overall all insurmountable obstacles, including the stock market scandal, to retain her business and home icon status. Martha’s website, http://www.marthastewart.com/crafts, displays many of her business products. The business products include kids’ accessories, Crepe –paper crafts, handmade clutches /bags, clay, and other kids’ nature products. In addition, Martha Stewart sold products under the home and garden classification. The classification included organizing tips for the day. One product is helping current and prospective customers choose the right color for their homes. The classification includes organizing tips for the day. The classification offers access to her Living journal. Martha’s website offers an entertainment product classification. The classification offers current and prospective customers to buy her regularly printed Mart’s Entertaining journal. The classification offers products relating to cocktails. The classification sells baby shower products for the expecting mothers. The classification offers products for graduation activities. Martha Stewart’s website sells a product classification for wedding occasions. The classification offers different wedding gown designs. The classification offers seasonal ideas for the special marriage event. The classification offers 50 great wedding centerpieces. In terms of publishing, Christopher Byron (2002) reiterated Martha Stewart enjoyed profitable success. Her journal, Entertaining, was successful in the magazine stands. Her husband, Andy, was instrumental in helping Martha Stewart, craft a very popular journal. Andy’s experience in the publishing industry, specifically with Abrams Publishing, encouraged Martha Stewart to come out with her own regularly published fully illustrated Entertainment journal. Andy persuaded Crown Publishing to publish the Entertaining journal of Martha Stewart. The journal was an instant success among the journal’s current and prospective buyers. To ensure the success of her printed products, Thomas Mickey (2003) reiterated Martha Stewart personally launched her product. She appeared on NBC’s “Today” show to discuss the many advantages of buying her Martha Stewart Living journal. In addition, Martha Stewart devoted a section of the Martha Stewart Living journal to gardening topics. The journal was a huge success among gardening enthusiasts. Martha also produced her own show. Martha Stewart’s TV show allocated a portion to gardening topics. Martha Stewart was catapulted as one of gardening gurus. However, Carrie Johnson (2005) reported Martha Stewart was entangled in one unethical situation during her stay at the top of her business career. Martha Stewart was imprisoned for her part in the ImClone Systems stock trading acts that were classified as UNETHICAL. Martha Stewart was the chief executive officer ImClone Systems. The United States Securities and Exchange Commission and the United States probe of trading. In addition, two officers and the founder of ImClone Systems, Samuel Waksal, were arrested for their part in the stock market scandal. The officers of the company sold their stocks in the market to avoid generating losses from selling their stocks AFTER the news will crop up that the company is losing money. Likewise, both Zvi Fuks, the chairman of New York’s Memorial Sloan Kettering Hospital, and Sabina Ben-Yehuda, an officer of an investment company with linkage to Waksal, sold their stocks after being tipped that the stock prices will drop after a few days. The arrests came after Martha Stewart served her sentence for obstructing investigation into her sale of ImClone stock. In terms of analysis, stock market prices rise when current and prospective customers receive good news about the stocks sold in the stock market. For example, the current and prospective customers are willing to pay higher prices for stocks offered in the stock market if news indicates the company’s profits are increasing in a trendy manner. Another good news shows that will increase the stock market prices is the establishment of new branches in another city or state. However, bad news will trigger a decline in the prices of a stock sold in the stock market. News that will show the company generated net losses for the past two years will prod the current and prospective customers to sell their stocks at lower prices. In a mad scramble to relinquish the stocks, the investors are willing to sell their stocks at lower prices. In the case of ImClone Systems, the unfavorable news of the company’s cancer drug issue precipitates to withdrawing the current investors of their investments in the ImClone Systems stocks. Lawrence Cunningham (2004) mentions “all investment philosophies center on the perceived relationship between price and value. Value and growth investors think value and price are different; index investors are not sure they can figure out the relationship; technical investors care only about price, not value; and portfolio investors think price is value.” To understand why ImClone Systems resorted to the UNETHICAL practice, one must remember that the stock market investment act borders on gambling. Harold Bierman (1998) insists “The current and prospective stock market investors. The stock market prices reached a peak on September 19, 1929, and then started to slide. But the crash actually picked up momentum on October 3. On that day the news report of the talk by Philip Snowden, the British chancellor of the exchequer, concerning the "orgy of American speculation" was reported by the newspapers.” The stock market prices were pegged on the business operations during that unforgettable Stock Market Crash of 1929. Businesses could not generate enough sales to produce a profitable picture of the company. Consequently, the business entities were forced to close down, filing for bankruptcy proceedings. Next, the employees of the bankrupt companies lost their jobs. The unemployment lines increased in length. This one of those painful moments spread across American commerce through the years. Bankruptcy includes liquidating the companies’ assets. Liquidation includes the selling the assets and distributing the cash collections from the sale of the assets among the companies’ investors (Carruthers, 1998). However, the ImClone Systems issue did not spell the end of the illustrious home and business career of Martha Stewart. Martha Stewart was able to muster enough inner and outer strength to return to her former stature as one of American society’s icons of everyday American living. Martha Stewart set up a website to sell products to her current and prospective customers. Likewise, Martha Stewart set up a website to sell her popular journal, Entertaining. Martha Stewart’s recovery shows there is always hope in the world. Based on the above discussion, Martha Stewart is one of the popular business icons of our parent’s generation. Martha Stewart’s rose to be one of today’s business and home icons. Martha Stewart suffered from unethical stock market act. Indeed, Martha Stewart was able to gather more than enough strength to overall all insurmountable obstacles, including the stock market scandal, to regain her business and home icon status. REFERENCES: Bierman, H. (1998). Retrieved May 25, 2012, from www.questia.com: http://www.questia.com/PM.qst?a=o&d=23477327 Byron, C. (2002). Retrieved May 25, 2012, from www.questia.com: http://www.questia.com/PM.qst?a=o&d=106426831 Carruthers, B. (1998). Retrieved May 25, 2012, from www.questia.com: http://www.questia.com/PM.qst?a=o&d=9831611 Cunningham, L. (2004). Retrieved May 25, 2012, from www.questia.com: http://www.questia.com/PM.qst?a=o&d=116766655 Johnson, C. (2005, March 10). Retrieved May 25, 2012, from www.washingtonpost.com: http://www.washingtonpost.com/wp-dyn/articles/A21839-2005Mar9.html Mickey, T. (2003). Retrieved May 25, 2012, from www.questia.com: http://www.questia.com/PM.qst?a=o&d=104325796 Read More