Ethical Consequences Of Martha Stewart Living Omnimedia (MSLO)

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In the construct of major businesses, the reputation of their Chief Executive Officer (CEO) can influence the achievement of the company. Martha Stewart Living Omnimedia (MSLO) had an abundance of success as an organization in the early twentieth century, but because of the detrimental decisions that Martha Stewart made, her company significantly decreased profit after the incident. The consequences of the unethical decisions that Stewart made as the CEO and president of MSLO gives an example of the major effect that this occurrence could have on the entity, especially with her serving as the face of the company. Martha Stewart’s Incident In Martha Stewart’s early life, she became passionate about housework from learning about baking, sewing, canning, cooking, and gardening from the joint teaching efforts of her mother and father (O’Rourke, 2004). In 1997, Martha Stewart Living Omnimedia was founded with a heavy focus on the various aspects of homemaking and appealing to the homemaker crowd with her business ventures. According to Smith (2000), the webpage of MSLO reported that Stewart was named one of the most influential people in America. After years of highly profitable business and building up a favorable reputation as the face of her company, Stewart decided to sell over two hundred thousand dollars in ImClone shares because of a tip off given by her broker that the stock price would drop significantly the next day (O’Rourke, 2004). According to Argenti and
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