Case Study: The Trial Of Martha Stewart

happened." She is completely ignorant on business matters. Stanley is no expert, but his basic

With the Martha Stewart scandal her actions initially saved her $45,673 but in the end did it really help? She ended up serving less than a year in prison and was fined $250,000. In hind sight she ended up losing a lot more money from selling the stocks and lying about it then if she would have just kept the stocks and took the hit when ImClone’s value fell. But selling stocks based on inside information so you’re sure you don’t lose money in an investment; doesn’t that seem like the right thing to do? No one ever wants to lose money especially in an investment, but avoiding a loss by selling stock the way Martha Stewart did is considered illegal. Having inside knowledge of a company and using that knowledge to make moves before the market price changes at that time probably seemed like a great idea but is profoundly illegal and known as inside trading. Martha Stewart was and is a well-known business woman and at that time served as President, CEO and chairwoman of her publicly traded company. She was educated and knowledgeable about what is allowed or not allowed as far as selling, buying and trading stocks. Her understanding of SEC regulations is especially disconcerting since she had been a part of the board of directors of the New York Stock Exchange. Martha was aware of the consequences that came with breaking the rules. Not only did she participate in insider trading and benefited from it but she also tried to cover it up claiming she and her stock broker

3. In your opinion, which of Brent’s alternative courses of action would provide the best outcome and why? What should Brent do? How would you handle the ethical issues involved in this situation?

Within the book, several ethical issues were presented. The most important issue was whether or not Anna

These titans faced at times withering public criticism of their financial dealings, but they also succeeded to a great extent in persuading the American public to follow and adapt Benjamin’s Franklin system of moral balance in judging their business ethics (Terris, 2005, p.25). This

Enron’s ride is quite a phenomenon: from a regional gas pipeline trader to the largest energy trader in the world, and then back down the hill into bankruptcy and disgrace. As a matter of fact, it took Enron 16 years to go from about $10 billion of assets to $65 billion of assets, and 24 days to go bankruptcy. Enron is also one of the most celebrated business ethics cases in the century. There are so many things that went wrong within the organization, from all personal (prescriptive and psychological approaches), managerial (group norms, reward system, etc.), and organizational (world-class culture) perspectives. This paper will focus on the business ethics issues at Enron that were raised from the documentation Enron: The Smartest Guys

     Martha Stewart, the countries top icon for homemaking has been in the eye of the public since June 2002, but not for her craftiness or culinary abilities. Stewart instead has the spotlight on her for crimes of insider trading. A tip from her former broker Peter E. Bacanovic, persuaded her into selling her IMClone stock after sharing information about a close friend of Stewart’s getting rid of his shares. Stewart’s companion, Sam Waksal, was also the chief executive of IMClone Systems Inc. IMClone Systems is a well-known company specializing in the research and development of therapies treatments of cancer. The stock selling was provoked due to a leak of information about The Food & Drug

4. What advice would you give to Rachel about whether she should spearhead the firm’s diversity and inclusion efforts or decline this assignment? a. Should Rachel share her concerns with the managing partner?

“She tried to report the attack but was told, “in the same breath,” that it didn’t really happen and that she was not to tell anyone about it.”

According to Anne Federwisch, ethical issues in the financial services industry affect everyone, because even if you don’t work in the field, you are a consumer of the service. She further stated that the public seems to believe that the financial services sector is more unethical than any other areas of business. She stated that James A. Mitchell believes that the misperception persists for several reasons, mainly because the financial industry is so large, and includes banks, securities firms, insurance companies, mutual fund organizations, investment banks, pension funds, and mortgage lenders

The fact of the matter is Marilyn put her needs ahead of a law she did not understand and must assume moral culpability. However, this is not a matter of retribution. When faced with such difficult circumstances, we must seek to bring about the least amount of pain to the greatest amount of people, and when reviewing the reasonable consequences to be expected; the death of these 7 men, against the additional hours of life we could have given Marilyn by allowing her to stay we made the practical choice.

The author provides an overview of the case of Bernard “Bernie” Madoff, a businessman and investment manager who is believed to have stolen as much as $65 billion from his investors (Stanwick & Stanwick, 2014). Bernie Madoff was operating not only the largest Ponzi scheme in history, but is also believed to have perpetrated the largest financial fraud in history. His network of investors included many prominent people from the financial world as well as the social elite. Madoff’s criminal career came to an end in 2008 when the recession developed. His supply of available funds began to diminish, and he was no longer able to pay his

Enron’s ride is quite a phenomenon: from a regional gas pipeline trader to the largest energy trader in the world, and then back down the hill into bankruptcy and disgrace. As a matter of fact, it took Enron 16 years to go from about $10 billion of assets to $65 billion of assets, and 24 days to go bankruptcy. Enron is also one of the most celebrated business ethics cases in the century. There are so many things that went wrong within the organization, from all personal (prescriptive and psychological approaches), managerial (group norms, reward system, etc.), and organizational (world-class culture) perspectives. This paper will focus on the business ethics issues at Enron that were raised from the documentation Enron: The Smartest Guys

This is a big surprise to Charlie who had not known this. Many guests present were also shocked to hear this. The guests begin to discuss how Christie’s parent’s marriage is not legal because it was not done in the catholic way. Charlie agrees with them and this makes Christie furious. Her attachment to her faith is her priority.

The stock market was created for the companies being able to raise money from outsiders. Meanwhile, the investors expected a return from the company. Security Exchange Committee established security acts of 1933 and 1934 in order to protect investors from being deceived. Investment companies act as mediaries between the companies who needs capital and investors that have extra money. In 2008 Bernie L. Mandoff Investment Securities LLC (BLMIS) was found guilty with Ponzi scheme. It was a case that consists of 35 to 85 billion dollars of fraud. This memo will discuss how BLMIS auditor disregarded their responsibility, how to improve audit procedures, and lastly should the auditors face criminal charges due to malpractice.