Fraud, lying, conspiracy...not terms that any individual generally wantsassociated with their history, nonetheless with their reputation andpersonality; especially if that individual happens to be Martha Stewart.Martha Stewart: a name which almost every person who calls themselves anAmerican can recognize. Her name pronounces itself across cookbooks,magazines and even has its own show on Style and The Learning Channel. Itnow pronounces itself with yet another captivating theme, as part of one of America's major scandals. The high profile nature of the Martha Stewart insider trading case led toabundant research and writing by academic and media professionals. In thispresentation we seek to discuss the central moral and ethical issuessurrounding the case. In addition, the greater issue of insider trading will beexamined and moral foundations for the issue will be established anddiscussed. Finally, the presentation will conclude with a suggestion for themost consistent ethical approach to insider trading.
Martha Stewart owned shares of a company Called ImClone SystemIncorporated, which was founded in 1984, it is a biopharmaceutical companycommitted to advancing oncology care by developing a portfolio of targetedbiologic treatments designed to address the medical needs of patients with avariety of cancers. In 2001 ImClone received notification that a newprescription drug, in which the company poured extensive money intoresearch and development, would not receive approval by the Food and DrugAdministration. The CEO of ImClone, Sam Waskal, in an effort to avoidfinancial losses to his shares of ImClone, made a call to his stock broker todump his shares of the company stock. The broker, who also served as abroker for Martha Stewart, notified Stewart that the CEO was liquidating the