Licchavi Lyceum

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Licchavi Lyceum

“Conflict of interest affects ethical decision-making”. What is your view? Illustrate with examples. What are the different kinds of conflict of interest? Discuss.

Q. “Conflict of interest affects ethical decision-making”. What is your view? Illustrate with examples. What are the different kinds of conflict of interest? Discuss.

Ans: Conflict of interest refers to a situation where an individual’s personal interests clash with professional responsibilities, potentially compromising impartiality and ethical judgment. It undermines public trust, distorts decision-making, and can lead to corruption, favoritism, or misuse of authority.

Impact on Ethical Decision-Making

  • When personal gain influences official duties, decisions may favor private benefit over public interest.
  • It creates bias, reduces transparency, and erodes institutional integrity.
  • Ethical dilemmas arise when officials must choose between loyalty to duty and personal relationships or benefits.

Example: A procurement officer awarding a contract to a relative’s firm despite better bids from others reflects a clear conflict, compromising fairness and public resources.

Types of Conflict of Interest

  1. Financial Conflict
    • Personal financial gain influences decisions.
    • Example: Owning shares in a company being regulated.
  2. Personal/Relational Conflict
    • Decisions influenced by family or close relationships.
    • Example: Hiring a spouse or friend in a government role.
  3. Professional Conflict
    • Dual roles or obligations create divided loyalties.
    • Example: A lawyer representing two opposing clients.
  4. Organizational Conflict
    • Institutional interests clash with stakeholder duties.
    • Example: A board member favoring a vendor linked to their own business.
  5. Ideological Conflict
    • Personal beliefs interfere with objective governance.
    • Example: A policymaker opposing scientific consensus due to religious views.

In conclusion, conflict of interest is a critical ethical challenge in governance. Addressing it requires transparency, disclosure norms, and institutional safeguards to ensure decisions remain fair, impartial, and accountable.

Read: OPSC Notes