Business Case Studies & Business Publications

Martha Stewart: Whipping Up a Storm (A)

James, Erika Hayes...

Case

Martha Stewart: Whipping Up a Storm (A)

James, Erika Hayes; Wooten, Lynn; Yemen, Gerry

OB-0793 | Published January 20, 2004 | 9 pages Case

Collection: Darden School of Business

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Sixty-year-old Martha Stewart, founder and former CEO of Martha Stewart Living Omnimedia Inc., was charged with four legal actions alleging she breached her fiduciary duties to MSO when she made "materially false and misleading statements" about her involvement in trading ImClone stock. Although Stewart's firm was not accused of any crime, she and her company were being likened to corporate villains such as Enron and WorldCom. The A case outlines events and Stewart's initial reactions, providing students an opportunity to examine issues of crisis containment and communication. Through the disaster, what might she anticipate for herself, for her role at MSO, and for the survival of the company she created? How should Stewart deal with unwanted media attention and negative attacks? And what audience was Stewart speaking to when she finally did appear publicly?