Ethical Decision-Making: Insider Information and Market Integrity

As a portfolio manager at a well-known investment firm, you are approached by a hedge fund manager who offers to share privileged non-public information regarding a pending merger between two public companies. The hedge fund manager believes that this information will provide a significant advantage in trading the stock of the firms involved. While such an opportunity could enhance your firm's performance and lead to substantial profits, you are aware of the ethical implications of utilizing insider information.

Discuss the ethical considerations surrounding the decision to accept or reject this offer. In your answer, be sure to reference the Integrity of Capital Markets standard, and analyze the consequences of your decision on both your personal ethics and the reputation of your firm.