Question

Team leader Gopal is scheduled to prepare a performance report of Kavita, a team member who also happens to be his wife's closest friend. The ethical temptation Gopal faces is ___________.

• A. sexual harassment
• B. misuse of corporate resources
• C. dealing with confidential information
• D. conflict of interest

Answer 1

Answer: (D)

conflict of interest

A conflict of interest is a situation in which an individual has competing interests or loyalties. Conflicts of interest involve dual relationships; one person in a position in one relationship and a relationship in another situation. A conflict of interest can exist in many different situations. The easiest way to explain the concept of conflict of interest is by using some examples.

• With a public official whose personal interests conflict with his/her professional position.
• With a person who has a position of authority in one organization that conflicts with his or her interests in another organization
• With a person who has conflicting responsibilities.

Types of activities that can create a possible conflict of interest include:

• Nepotism is the practice of giving favors to relatives and close friends, often by hiring them.
• Self-dealing is a situation in which someone in a position of responsibility in an organization has outside conflicting interests and acts in their own interest rather than the interest of the organization.