Ethical Issues

Emery Manufacturing Company produces component parts for the farm equipment industry

and has recently undergone a major computer system conversion. Samson Achebe, the

controller, has established a troubleshooting team to alleviate accounting problems that have

occurred since the conversion. Samson has chosen Gus Swanson, assistant controller, to hea

the team that will include Linda Wheeler, cost accountant; Cindy Lopez, financial analyst;

Randy Lewis, general accounting supervisor; and Max Crandall, financial accountant.

The team has been meeting weekly for the last month. Gus 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 Samson. He has also use

this team as a forum to discuss issues and disputes about him and other members of Emery'

top management team. At last week's meeting, Gus told the team that he thought a

competitor might purchase the common stock of Emery, because he had overheard Samson

talking about this on the telephone. As a result, most of Emery's employees now informally

discuss the sale of Emery's common stock and how it will affect their jobs.

Required: $$

Is Gus Swanson's discussion with the team about the prospective sale of Emery unethical?

Discuss, citing specific standards from the code of ethical conduct to support your position.

$($CMA adapted$)$

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instructor.