What constitutes a conflict of interest?

A conflict of interest occurs when an individual's personal interests—such as financial, familial, or social affiliations—pose a potential risk of undermining their professional duties and obligations. This situation arises when personal motivations could influence decisions in a professional context, potentially affecting the integrity and impartiality required in their role.

For example, if a decision-maker stands to benefit personally from a business transaction or a hiring decision, this creates a conflict between their personal gain and their professional responsibility to act in the best interest of their organization. Recognizing and properly managing these conflicts is critical to maintaining ethical standards and trust in professional settings.

Understanding this concept is essential, as it helps define the boundaries of acceptable behavior in the workplace and ensures that professionals remain focused on their duties without the detrimental influence of personal interests.