A conflict of interest generally arises when:

A conflict of interest typically arises when an individual has the potential to benefit personally at the expense of another party, such as an employer or a client. In a business context, this could occur when the personal interests of an employee or decision-maker diverge from the best interests of the organization they represent.

For instance, if a manager could gain financially from recommending a supplier who may not offer the best value to the company, this creates a conflict. Their personal benefit could lead to decisions that compromise the integrity of the organization, harm relationships with other stakeholders, or impact the overall fairness in business dealings.

Understanding this concept is crucial for maintaining ethical standards and trust within any organization, as it underscores the importance of transparency and integrity in decision-making processes. In contrast, aligning interests or making group consensus decisions typically does not lead to conflicts of interest, as they do not inherently involve self-serving motivations that could detract from a fair and equitable outcome.