Which is a conflict of interest?

A conflict of interest occurs when an individual’s personal interests or relationships may potentially interfere with their professional duties or responsibilities. The scenario where a banker approves a loan to a company while being a shareholder illustrates this concept clearly. In this case, the banker has a vested interest in the company's success due to their stake in it, leading to potential bias in their decision-making regarding the loan approval process. This dual relationship could compromise the objectivity required in the banking role and therefore creates a significant conflict of interest.

The other scenarios, although they may involve ethical considerations, do not have the same direct impact on the professional's judgment in the way that the banker’s situation does. For example, while employees receiving gifts might raise ethical issues regarding favoritism, it doesn’t inherently compromise a decision-making process like a financial approval does.