Understanding Conflicts of Interest

What is a conflict of interest in a business context?

• When stakeholders have shared goals

• When a person’s personal interests clash with their professional duties

• When businesses work together to achieve the same outcome

• When customers and businesses communicate effectively

Which of the following is an example of a conflict of interest?

• A manager promoting a friend over a more qualified candidate

• An employee following company policies

• A supplier offering discounts to a loyal customer

• A business reducing its environmental impact

Why is a conflict of interest problematic in business?

• It can damage relationships with stakeholders

• It strengthens employee loyalty

• It leads to better decision-making

• It improves profit margins

Who can be affected by a conflict of interest?

• Only employees

• Only shareholders

• Only customers

• Employees, customers, shareholders, and other stakeholders

What should be done when a conflict of interest is identified?

• Ignore it and continue with the task

• Make decisions that benefit personal interests

• Disclose it and seek a resolution

• Avoid making any decisions