What defines a conflict of interest?

A conflict of interest is characterized by a situation where a person's personal interests have the potential to interfere with their professional responsibilities and decision-making. This often occurs when individuals prioritize their own financial, personal, or other interests over the best interests of the organization or stakeholders they serve. By allowing personal interests to influence professional actions, the integrity and objectivity of decisions can be compromised.

In a business context, recognizing and disclosing conflicts of interest is vital for maintaining ethical standards and trust within organizations. This helps ensure that decisions are made based on the merits of the business case rather than personal benefit. Other options, such as aligned interests or discrepancies in business metrics, do not accurately represent the essence of a conflict of interest. Similarly, corporate restructuring pertains to organizational changes and does not involve the personal dimensions that define conflicts of interest.