Michael Zhang is employed in the accounting department of Sunshine Build Group Ltd which is one of Australia’s largest suspension bridge builders. He lives in a large architect designed house in an expensive suburb in Brisbane. He has a $700,000 housing loan and is having difficulty meeting the monthly repayments. Michael was expecting to receive a pay rise and bonus that would assist him cover his living expenses and home loan repayments. However, the cancellation of several large contracts due to COVID 19 meant that this pay rise and bonus did not occur.
He meets a stockbroker named Mary Simons at a football match in the private box of his employer. This stockbroker rings him several days later and says “I will be grateful if you provide any information about Sunshine Build – nothing confidential. One of their fellow football followers points out that the stockbroker is a nice person that has been helpful to the football club.
Six months later Michael Zhang’s financial position is dangerous, and he cannot meet the repayments on his house. It appears that he might have to sell the house.
The stockbroker (Mary Simons) calls again and offers to pay Zhang $700 a week for regular information about Sunshine Build Group operations. She states, “nothing specific, but anything that is interesting including profit trends”. The stockbroker explains that she is not paying for information but is helping Zhang because of their friendship.
Zhang feels he needs the money and judges that as he does not have access to strictly confidential information, any information he gives the stockbroker is available from many sources. It also means that it is unlikely that Zhang will be identified as the source of information. His fellow football mates urge Zhang to accept the deal. He feels little loyalty to Sunshine Build Group which has not been the generous employer he had hoped.

REQUIRED:
Apply the AAA model of ethical decision making to this case. Refer to the Code of Ethics for Professional Accountants where appropriate.