...Corporate Hero with Scandal: Lessons Learned from Martha Stewart’s Insider Trading Crisis Shuhui Sophy Cheng Assistant Professor Department of Communication Arts Chaoyang University of Technology 168 Jifeng E. Rd. Wufeng District Taichung 41349, Taiwan Abstract Martha Stewart places her name on her products. She becomes the face of her company and the voice of her brand. When her personal misconduct occurred, she made her company vulnerable and risky as well. This casestudy examines how Martha Stewart managed her corporate communication when her public image and reputation were tarnished on trial for alleged insider trading scandal. The trial not only led her to prison but also hurt her brand equity. The study shows that Stewart’s early response to her crisis demonstrated lack of situation awareness. In the beginning of her investigation, she kept her public persona intact, ignoring or downplaying her role in it. As a result, what Stewart called “a small personal matter” later became a full-blown crisis. If she had managed her communication in a more timely manner, the magnitude of her crisis might have been minimized. This article also provides detailed insights for organizations to learn from her crisis response strategies. Keywords: Organizational crisis, Crisis communication, Image restoration 1. Introduction The personalities of strong business leaders can help shape and enhance their corporate image. In some cases, the leaders become the virtual icon of the corporate...
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...Throughout the case study on Martha Stewart, evidence provided illustrates how public relations can alter the image of a national personality in both negative and positive lights. In particular, the case illustrates how Stewart’s initially poor public relations responses tarnished her image and, only after changing her tactics, did she actually work toward correcting the problem. Ultimately, the Martha Stewart case is pivotal in illustrating how the power of public relations, if used correctly, can revamp a person’s public portrait----even if formal charges of criminal activity exist. Martha Stewart, a “model student” and iconic legend of the kitchen, has been world renown for her success and outspokenness in the past; however, upon receiving allegations of insider trading, Stewart actually became a ‘silent diva’ by inevitably isolating herself from all media and society (Seitel, 17-18). Although this initial public relations response helped Martha avoid responding to the pressing questions from the media, I believe that her silence was counterintuitive to proving her innocence in the sense that her natural personality was “typically feisty” (18). Using logical thinking, most Americans accused of a crime that they were not responsible for would protest, appeal, and flat out become outraged----actions that an already “feisty” Stewart surely would have carried out had she truly believed in her innocence. By remaining silent and withdrawing from her daily life on talk...
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...Government Regulation Research Paper 1 Crystal Carrothers Introduction Government regulation is around us everywhere. The government needs to make sure that the public’s interests are maintained and preserved. Being an accounting student, I have heard and read about regulation in the accounting industry numerous times. There have been many major accounting scandals in history that have lead to many different kinds of government regulation. The government regulations in accounting are mostly enacted to protect investors. From 2000 to 2002 there was an abundant number of large corporate accounting frauds, which led to the Sarbanes-Oxley Act of 2002. Previous regulations were efficient to a certain extent, but scandals still happened and more regulation seemed to always be needed. Even though the new SOX regulation seems powerful and efficient, I believe that there will always be a need for additional regulation in order to prevent future scandals. Securities Acts of 1933 and 1934 Summary of Regulation The stock market crash of 1929 resulted in the Securities Act of 1933. This act required that before a company an offer or sell securities in a public offering, they must register the securities with the Securities and Exchange Commission (SEC). The registration statement is used to notify the SEC that a sale of securities is pending and that the information needs to be disclosed to prospective buyers. This statement includes information about the issuer and its business...
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...Plagiarism Exercise Instructions Plagiarism is a common error that is made in colleges and universities whether intentional or not. Please download this assignment and insert your answers beneath each question, then save and submit your work as Plag._Ex_Your Name. Below, you will complete an assignment where you will be required to review an excerpt from a journal article written by Martha Snyder. After reading the excerpt and reviewing all of the materials in the Reading & Study folder, please complete the questions related. Do not neglect to include citations as needed. In order to provide some clarification, please see the definitions below: * Paraphrase: When you paraphrase something, it means that you are restating the facts in your own words, clarifying facts, or rewording. * Summary: A summary requires that you take a passage or excerpt and break it down into the most basic points. To use a common metaphor, you are trimming the fat. The reader should be left with only the major points. * Quotation: A quotation requires that you take a portion of the text and replicate it exactly. This can be anywhere from 3 words to an entire sentence. Part One: 30 Points For the assignment, write as though each answer is a portion of your Adult Learning Theory Paper. Everything should be in current APA format (where necessary). Please read the excerpt below and answer the questions. In an effort to better understand how adults learn, adult learning theories are...
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...online were going to be at an everyday low price. In conjunction with this strategy, the retailer was going to introduce new brands to their retail store fronts (i.e. “Martha Stewart and l'amour nanette lepore”) which include a store within a store concept further distinguishing and separating the products/brands within their stores. Further detail can be referenced via the following link:http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irolnewsCompanyArticle&ID=1652614&highlight. Although these changes seemed positive and progressive at first, once implemented it had quite an adverse effect on their business overall and as a result sales have continued to suffer going into early 2013. In fact, when fourth quarter sales information was released, it showed JC Penny department sales being down 32% year over year. (Blodget, 2013. Para. 2). It was apparent that there was a disconnect between the company’s newly implemented changes/vision, and the customers perception and reaction. These articles speaking to the changes and status of the JC Penny Company Inc. are very relevant to our content and discussions as this clearly showcases a company going through a change in business strategy and all that accompanies it. Items directly referenced from our current text such as: • Strategic Management (or in this case lack thereof)...
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...build a reputation and five minutes to ruin it” claims billionaire Warren Buffett. “If we think about that, we will all do things differently.” Bernie Maddof and Martha Stewart had their reputation permanently ruined in the business world due to poor business decision making, likewise their involvement in financial crime and unethical business practices. If the above mentioned people had the opportunity of turning back the hands of time, they would have done things differently and be more ethical in their business practices. Sarbanes-Oxley Act of 2002 is a United States federal law that set new standard for ethical business practices for all U.S public company boards, management and public accounting firms. The bill was enacted as a reaction to a number of major corporate and accounting scandals which cost investors billions of dollars. Many experts think business Ethics can be thought and examined in business schools, but the question is, is it possible to enforce or instill the act of doing right things and making right decisions at all times in the business world? Ethics is a branch of philosophy dealing with values relating to human conduct with respect to the rightness and wrongness of certain actions and to goodness and badness of the motives and ends of such actions. Where as, Business ethics is the study and examination of moral and social responsibility in relation to business practices and decision-making in business. In response to the numerous corporate and financial...
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...company mission, vision, and value’s statements which help them to perform at optimum levels of operations. Missions, vision and value statements: the overall goal is to provide the organization with their purpose; which is the case for these retail chains in the U.S. The mission, vision and value statements aid each chain to define their brand, culture, and consumer relations. Each retail chain differentiates them-selves by providing unique good and services to their consumers, more-over their mission, vision and values statement must also be unique, enabling them to stand out form each other. The big players in the discount retail market are Wal-Mart, Kmart, and Target. (retailindustry.about.com) Supporting Paragraphs Both mission and vision relates to an organization’s purpose and are typically communicated in some written form. Mission and vision are statements from the organization that answer questions about which we are, what we value, and where we’re going. (Coffman, Freire, Heaver, & Soltis, 2002) Mission statements are often longer than vision statements. Sometimes mission statements also include a summation of the firm’s values. (Cady, Wheeler, DeWolf, & Brodke, 2011, p. 70) Values are the beliefs of an individual or group, and in this case the organization, in which they are emotionally invested. A vision statement, describes what an organization’s purpose and aspirations will possibly be in the future. The mission statement gives meaning and purpose to...
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...Company Profile Bobbi Brown Cosmetic Company is created by celebrity makeup artist, Bobbi Brown. Bobbi Brown started her business in 1991’s with a lip stick and a simple philosophy “Women want to look and feel their best, only prettier and confidence “. Bobbi Brown, she designed her own cosmetic product and the brand are featuring woman’s natural beauty, it timeless and classic. With the realistic concept of strategic, soonest Bobbi Brown cosmetic has achieved an amazing result in cosmetic market. In year 1995’s, Bobbi Brown has sold over her brand to Estée Lauder Company for further development. Within 10 years, Bobbi Brown has expanded her business to more than 60 countries. “Pretty powerful” is one of the charity program created by Bobbi in America and Cambodia, to empowering women and girls with the basic job skill, education and bring them back into a real society. Date established 1991 Listed in SGX 2000 Corporate HQ & Factory United State Manufacturing Location New York Canada London Japan Korea. Major Market United state Europe Asia Australia SWOT Analyze Strengths * Worldwide recognition by famous makeup artists, celebrities , bloggers and magazine editors. * High quality of the products built a very good market reputation and loyalty. * With all experienced and certified makeup artists as their brand consultants, it is always satisfied customer needs and built...
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...Touro University California Theresa Williams-Rivers Module 1 Case Assignment ETH501: Business Ethics Dr. Gary Shelton Saturday, April 26, 2014 A Master’s paper submitted to the faculty of Touro University California In partial fulfillment of the requirement for the award of Graduate Diploma in Master’s Degree in Business Management Introduction The purpose of this assignment is to provide a critical analysis of the 2002 collapse of Adelphia Communications as seen through the lens of Immanuel Kant deontological ethics. This analysis will be accomplished by providing a brief time lime of the Adelphia, identifying and discussing two key ethical problems raised and describing what is meant by deontological ethics. More specifically this paper will show how Kant’s Categorical Imperative (CI) applies to this scenario. The latter discussion will apply the deontological framework of business ethics to the two key ethical problems by constructing CI to the Adelphia scenario. The supporting material for this discussion can be found at Harvard University’s 2011 lecture: Justice, What’s the right thing to do? as presented by Professor Michael Sandel8. To examine the elements of the case, we will inspect the unethical behavior of five key figures culpable in the “rise and fall of the small town saga of epic dimensions8”. John J. Rigas (Founder), his two sons; Timothy J. Riga’s (CFO), Michael J. Riga’s (VP of Operations), James R. Brown (VP of Finance) and Michael...
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...Module 1 Case Assignment ETH501: Business Ethics Saturday, April 26, 2014 A Master’s paper submitted to the faculty of University of California In partial fulfillment of the requirement for the award of Graduate Diploma in Master’s Degree in Business Management Introduction The purpose of this assignment is to provide a critical analysis of the 2002 collapse of Adelphia Communications as seen through the lens of Immanuel Kant deontological ethics. This analysis will be accomplished by providing a brief time lime of the Adelphia, identifying and discussing two key ethical problems raised and describing what is meant by deontological ethics. More specifically this paper will show how Kant’s Categorical Imperative (CI) applies to this scenario. The latter discussion will apply the deontological framework of business ethics to the two key ethical problems by constructing CI to the Adelphia scenario. The supporting material for this discussion can be found at Harvard University’s 2011 lecture: Justice, What’s the right thing to do? as presented by Professor Michael Sandel8. To examine the elements of the case, we will inspect the unethical behavior of five key figures culpable in the “rise and fall of the small town saga of epic dimensions8”. John J. Rigas (Founder), his two sons; Timothy J. Riga’s (CFO), Michael J. Riga’s (VP of Operations), James R. Brown (VP of Finance) and Michael C. Mulcahey (Director of Internal Reporting). By reading the case study we will...
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...7, 2009 Final Assessment Date: August 18, 2009 Instructor Contact Information: Office Location: Room 223 Office Hours: by appointment but I am very flexible with time Phone: 734-943-2858 Fax: 734-943-2848 E-Mail: david.labeau@davenport.edu Instructor Background Information: David is the MBA coordinator at Livonia location for Davenport University. David has a BS degree from Detroit College of Business (now Davenport University), MA from Central Michigan University, and has Ph.D. studies at Wayne State University and North Central University. He has experience in the Under-Graduate and MBA program. In 1990 he was selected Alumnus of the year for Detroit College of Business. Previously, he has represented his employer for assisgnments in Japan, the Netherlands, Germany, and Italy. Through his consulting service, David has developed successful programs in problem resolutions, employee development, team building, leadership dynamics and corporate analysis leading to turn-around activities, and developing learning organization. He has been a featured presenter at seminars and conventions throughout the United States and Canada. DONALD W. MAINE SCHOOL of BUSINESS BUSN210 Professional Ethics Credit Hours: 3 Contact Hours: 45 Prerequisite(s): Co-requisite(s): Course Description This course explores applied ethics, focusing on social and professional situations especially in the fields of business, law, and technology. Students...
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...responsibility of the accountant while serving its clients business. Giving two examples where a forensic accountant played an important role in aiding attorneys in presenting fraudulent bookkeeping records of company’s who ultimately committed white-collar crimes. Have you ever heard the figure of speech a “needle in a haystack” when referring to finding a small object in a large setting? The task of performing a very detailed search seems impossible. Leaving no stone unturned and demanding hours and hours of mental and manual labor. This is what a forensic accountant faces. By definition, a forensic investigation of any kind is conducted with the purpose of obtaining evidence that will be used in a court case. Forensic accounting is simply the analysis of financial documents use as tax returns, bank statements, canceled checks and the like, in search of proof of a criminal act, be it tax evasion, running numbers, embezzlement, money laundering, fraud by wire or securities fraud (DiGabriele, 2009). These crimes exists for the sole purpose of illegally making money. Leaving a paper trail pointing to criminal activity producing money coming into and leaving the organization. This is one reason the demand for forensic accountants or becoming more mainstream. Once used only by governmental agencies only like the IRS and the CIA to investigate and exposed the most unmoral crimes. More and more corporations are hiring forensic accountants. Some are even developing departments...
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...The foundation of a successful organization is defined by a strong leader. Regardless of the type, size, or financial performance, the foundation of the organization still lies in the hands of a leader. The success or failure of an organization is often linked to the leadership style and ability of the leader. There is no “one size fits all” leadership style and it is essential that each leader develop his or her own style to successfully lead the organization. There has also been a link found between the personality of an individual and their leadership capabilities as it relates to the overall leadership style of the formal or informal leader. “Leadership style is the manner and approach of providing direction, implementing plans, and motivating people.” (Clark, 2013) In order to provide direction and implement plans, the four decision making styles that have been identified are autocratic, consultative, group, and delegated. These four styles have been derived from the Vroom and Yetton Model. Leaders of an organization are not limited to those individuals who hold a managerial or official title or those who are highest on the hierarchy of an organization. “While too often we can find powerful people who do not hold genuine positions of authority, we frequently find people who are in a position of authority, but are powerless to influence the behavior of others.” (Goncalves, 2013) Formal leaders are those who have been given or have earned their place at the top...
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...Review: Incorporating Ethics Training in Business Abstract As the need for showing the importance of ethical behavior standards has become more prominent of the past decade, this review intends to show the need for standards of ethics in businesses based on previous research. Ethical training within a business is a topic that has been debated on importance. It has been discussed as a benefit and as more of a cosmetic topic. There are many articles written that discuss what business ethics is, and then there are articles that talk about the need for or against training of business ethics by businesses. This review is aimed towards showing the pros and cons of ethics training by businesses as discussed in current or recent surveys, studies, and articles. Introduction Business ethics has been a controversial topic for many years. It is said to be a double-edged sword and is seen as both an evil and as a proactive approach to preventing lies and motive good behavior (Bayley, 2012). There have been many surveys and articles that have been written on the subject matter. Many of these show the importance of ethical standards and training within a business. There seems to be controversy on whether training on ethics in a business is a benefit or just a cosmetic cover. It has been shown through several surveys and discussed in many articles of the benefits of providing ethics training within a business. However, some still believe that it is a short-lived benefit...
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...Click here to download the solutions manual / test bank INSTANTLY!! http://testbanksolutionsmanual.blogspot.com/2011/02/accounting-information-systems-romney.html ------------------------------------------------------------------------------------------------------------------------ Accounting Information Systems Romney 11th Edition Solutions Manual Accounting Information Systems Romney 11th Edition Solutions Manual Accounting Information Systems Romney 11th Edition Solutions Manual Accounting Information Systems Romney Steinbart 11th Edition Solutions Manual Accounting Information Systems Romney Steinbart 11th Edition Solutions Manual ------------------------------------------------------------------------------------------------------------------------ ***THIS IS NOT THE ACTUAL BOOK. YOU ARE BUYING the Solution Manual in e-version of the following book*** Name: Accounting Information Systems Author: Romney Steinbart Edition: 11th ISBN-10: 0136015182 Type: Solutions Manual - The file contains solutions and questions to all chapters and all questions. All the files are carefully checked and accuracy is ensured. - The file is either in .doc, .pdf, excel, or zipped in the package and can easily be read on PCs and Macs. - Delivery is INSTANT. You can download the files IMMEDIATELY once payment is done. If you have any questions, please feel free to contact us. Our response is the fastest. All questions will always be answered in 6...
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