A company or person has a conflict of interest and loses credibility when their professional duties or responsibilities conflict with their personal (or self-serving) interests.
Such a conflict arises when an organization or individual has a vested interest which questions their ability to act, judge, or make decisions objectively. Vested interests include money, position, knowledge, relationships, and reputation.
Which of the following is true about conflicts of interest?
A) A financial dimension is required for there to be a conflict of interest.
B) Conflicts of interest increase the likelihood of bias.
C) Any conflict of interest must be present for a project to be supported by an outside source.
D) Researchers are not permitted to have any conflicts of interest.
The right answer is (B): Conflicts of interest increase the likelihood of bias.
Explanation
Which of the following is true about conflict of interest?
A financial dimension is required for there to be a conflict of interest. Conflicts of interest enhance the possibility of partiality. Any dispute of interest must be present for a project to be supported by an outside source. Conflicts of interest are not allowed for researchers.
Understanding Conflict of Interest
In the business world, a conflict of interest typically refers to when a person’s interests collide with their obligations to their employer or the organization they work for. When someone puts their interests ahead of their responsibilities to an organization in which they have a stake, or when they, in any other manner, take advantage of their position for personal gain, they are in a conflict of interest.
Every corporate board member owes the corporations they manage a duty of loyalty and fiduciary duties. A conflict of interest damages the company when one of the directors decides to act in a way that serves their interests at the company’s expense.
FAQs
What is true about conflicts of interest?
A conflict of interest arises when a person’s claims, such as those related to family, friends, finances, or social issues, may influence their decisions, actions, or judgment at work.
Which of the following assertions regarding conflicts of interest is correct?
True is The statement that a situation must have a financial component to be considered a conflict of interest.
Which of the following is true about the management of conflicts of interest?
The truth is that management plans are often created to reduce the impact of conflicts of interest.
Which of the following best describes a conflict of interest quizlet?
A person’s actions could profit them at their employer’s expense.
