alleryStart learning →A conflict of interest arises when what happens?
ATwo departments compete for the same budget
BA firm sells to a customer who also supplies it
COfficial responsibilities are swayed by personal gain
DAn employee resigns and joins a competing firm
Answer & Solution
Correct answer: C. Official responsibilities are swayed by personal gain
1. A conflict of interest occurs when the official responsibilities of an employee or official are influenced by the potential for personal gain.
2. The test is whether personal gain could shape the outcome of an official duty.
3. Budget competition and ordinary trading relationships involve no such private gain.
4. Resigning to join a competitor raises a different issue, namely divulging proprietary information.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 2 "Making Ethical Decisions and Managing a Socially Responsible Business", section 2.1 Recognizing Unethical Business Activities_
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