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Martha Stewart

Martha Stewart. Group 7 Wen Feng Sarah Fraser Vi Tran Scott Dwyer Salvador Solorio. Brief Biography. born August 3, 1941 in Jersey City, New Jersey

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Martha Stewart

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  1. Martha Stewart Group 7 WenFeng Sarah Fraser Vi Tran Scott Dwyer Salvador Solorio

  2. Brief Biography • born August 3, 1941 in Jersey City, New Jersey • the second of six children born to middle-class Polish Americans Edward "Eddie" Kostyra (1912–1979) and Martha RuszkowskiKostyra (1914–2007) • 3 years old: moved to Nutley,adopted the name "Grace" for her confirmation name •  10 years old: worked as the occasional babysitter for the children of athletes for New York Yankee •  15 years old: was featured in a television commercial for Unilever • 18 years old : graduated from Nutley High School and attended Barnard College majoring in architectural history

  3. Biography (Cont’d) •  19 years old: married Andrew "Andy" Stewart, law graduate from Yale, and had only one daughter, Alexis, in 1965, then got divorced in 1989 • 49 years old: signed with Time Publishing Ventures to develop a new magazine, Martha Stewart Living • 54 years old: was declared as "the definitive American woman of our time“ • 63 years old: in 2004, was entangled in the ImClone insider trading affair, the end of her media empire • She was then placed in a two-year term of supervised release; during five of those months, she was placed in home confinement with electronic monitoring. • In 2011: rejoined the board of directors of Martha Stewart Living Omnimedia • In 2012: became chairman of her namesake company again

  4. Martha Stewart Career In the early of her age, Stewart moved to Westport, Connecticut, and she build a farmhouse into the move of the TV studio of Martha Stewart Living. In 1976, she started a catering business with her friend- Norma Collier, but later on they have argument. So Stewart stared her own store.

  5. Later on, Stewart met Mirken who found out her talent and help her to develop a cookbook, and her first book is Entertaining. • After the successful resulting of the first book, Stewart wrote more books later of years. • In 1990, she developed a new magazine Martha Stewart Living as a editor-in-chief. •  Stewart also became a frequent contributor to CBS’s The Early Show, and she earned the name “the definitive American woman of our time” from the New York Magazine.

  6. In 1997, Stewart build her brand into a new company, and the new name is Martha Stewart Living Omnimedia. She became the CEO of the company, later on her company went to public under the symbol MSO.

  7. Event that makes Martha Stewart a Person of Interest On December 27, 2001, Martha Stewart sold all her stock shares from the pharmaceutical company ImClone Systems. She had 3,928 shares of stock that were worth about $230,000. Martha Stewart had invested in a pharmaceutical company called ImClone Systems, which was developing a new cancer drug called Erbitux. They applied to the U.S Food and Drug Administration (FDA) for approval of the drug so that they were able to begin selling it nationwide. The FDA did not approve Erbitux, so ImClone was not able to begin selling the drug for profit.

  8. It all started when ImClone CEO Sam Waksal started telling close friends that the FDA would not approve the drug, and that FDA rejection would lead to stock share value dropping immediately. • Sam Waksal and Martha Stewart were close friends, and employed the same broker, who was Peter Vacanovic. • Peter Vacanovic learned that Waksal was trying to sell his stock before the FDA would officially deny the approval of the drug Erbitux, and ordered Douglas Faneuil, his assistant, to tell Stewart about this, who then decided to sell all her shares. • The reason Stewart got into legal trouble was because the information she received was non-public, which gave her an advantage over other shareholders. • Part of the reason for getting in trouble was because she did not cooperate with authorities, and was misleading them when they were investigating if Sam Waksal had committed any wrongdoing.

  9. A week after Stewart sold her shares, federal investigators began to probe into whether there was any insider trading going on. • Martha Stewart tried to justify her actions by saying that she had given a letter to Vacanovic instructing him that if her shares ever fell below $60 in value then he were to sell her stocks, which they did on December 27, 2001. • Stewart said that by letting Vacanovic know early on of what she wanted to do, he already knew of what to do if the shares were falling, thus avoiding huge losses. • On June 4, 2003, Stewart was indicted on nine counts of obstruction of justice, which also included one count of securities fraud and was known to carry the harshest sentence. • In the end U.S District judge Miriam Cedarbaum dropped the securities count • In March 2004, Stewart was found guilty on four counts of obstruction of justice and lying to investigators, and on July 2004 she was sentenced to serve five months in federal prison and pay a $30,000 fine.

  10. Moral Philosophies Associated with Stewarts Actions Egoism Philosophy – Consequentialist theory originally made by Adam Smith where right or acceptable behavior is defined in terms of consequences to the individual only, thereby maximizing personal interest. Second Stage of Cognitive Moral Development – Non-consequentialist theory made by Lawrence Kohlberg. Second stage consists of individual instrumental purpose and exchange. The concern is "What's in it for me?" Still egocentric in outlook but with a growing ability to see things from another person's perspective. Action is judged right if it helps in satisfying one's needs or involves a fair exchange.

  11. Stewart Practiced Egoism and Moral Development Philosophies since: • Her actions are purely out of selfishness and her thoughts were aimed to reach one goal: to maximize her own interest. • She sold the stocks to avoid personal losses. • She thought that it was fair and acceptable to avoid personal losses, while she did not bother to warn the shareholders about the upcoming losses. • She bluntly did not care about the shareholders bearing losses as long as she was not losing. • She felt it was right since it satisfied her own needs.

  12. Additional Moral Philosophies Second Formulation of Categorical Imperative – Non-Consequentialist theory made by Immanuel Kant. “Act so that you treat humanity, whether in your own person or in that of another, always as an end and never as a means only.” Basically, the other person should be valued solely for who they are and not merely used to serve our needs. Stewart did not follow this philosophy since: • She sold stocks of Martha Stewart Living Omnimedia Inc. to protect herself and to avoid losses that would have resulted after the government announced public charges against her. Shareholders of her company were deceived since she did not tell them the truth behind the significance of the stock selling. • She deceived the government by misleading them to believe that she had an agreement with her brokers to sell ImClone stock if it fell below $60.

  13. Where is she now? •Martha currently lives in Bedford in Westchester County of New York, which is 45 miles north of New York City •She purchased this farmhouse in 2000 and gradually moved in •It is a 153-acre property including a summer house, guest house, and a cottage

  14. Where is she now? • Martha enjoys spending time with her daughter Alexis and her grandchildren, Jude and Truman • Her property is currently being hit by hurricane Sandy. Trees have fallen on her guest house, but luckily so far her farm animals are safe. Recently she has been staying home due to the storm

  15. References • http://www.scribd.com/doc/26063962/Martha-Stewart-Case-Study • http://www.mrsbernasconi.com/cms/wp-content/uploads/2010/09/MIB2NORMATIVETHEORIES.pdf • http://en.wikipedia.org/wiki/Martha_Stewart

  16. Ackman, D. (2004, March 5). Martha Stewart found guilty. Forbes. Retrieved from http://www.forbes.com/2004/03/05/cx_da_0305marthafinal.html • Crawford, K. (2004, July 20). Martha: I cheated no one. CNN Money. Retrieved from http://money.cnn.com/2004/07/16/news/newsmakers/martha_sentencing/ • Stewart convicted on all charges. (2004, March 10). CNN Money. Retrieved from http://money.cnn.com/2004/03/05/news/companies/martha_verdict/ • Jerome, A. M., Moffitt, M. A., & Knudsen, J. W. (2007). Understanding how Martha Stewart harmed her image restoration through a “micropolitics” of power. In J. L. Courtright & P. M. Smudde (Eds.). Power and public relations (pp. 85-103). Cresskill, NJ: Hampton Press, Inc.

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