Webson Manufacturing Company produces component parts for the airline industry and has recently undergone a major computersystem conversion. Michael Darwin, the controller, has established a trouble-shooting team to alleviate accounting problems that have occurred since the conversion. Michael has chosen Maureen Hughes, assistant controller, to head the team that will include Bob Randolph, cost accountant; Cynthia Wells, financial analyst; Mar¬

jorie Park, general accounting supervisor; and George Crandall, financial accountant.

The team has been meeting weekly for the last month. Maureen insists on being part of all the team conversations in order to gather information, to make the final decision on any ideas or actions that the team develops, and to prepare a weekly report for Michael. She has also used this team as a forum to discuss issues and disputes about him and other mem¬

bers of Webson's top management team. At last week's meeting, Maureen told the team that she thought a competitor might purchase the common stock of Webson, because she had overheard Michael talking about this on the telephone. As a result, most of Webson's employees now informally discuss the sale of Webson's common stock and how it will affect their jobs.

Required:

Is Maureen Hughes' discussion with the team about the prospective sale of Webson uneth¬

ical? Discuss, citing specific standards from the code of ethical conduct to support your po¬

sition. (CMA adapted)