Define "conflict of interest."

A conflict of interest arises when an individual's personal interests—such as financial, familial, or social considerations—could potentially interfere with their professional responsibilities or obligations. In the context of business ethics and compliance, recognizing and managing conflicts of interest is crucial, as it ensures that decisions made in a professional capacity are free from undue influence or bias caused by unrelated personal interests. This perspective helps maintain the integrity of the decision-making process within an organization.

The other options touch upon aspects related to ethics and transparency but do not accurately capture the essence of a conflict of interest. Prioritizing company interests over personal benefits suggests a focus on loyalty but lacks the nuance of personal interference. Transparency policies or ethical guidelines are important for governance and decision-making but do not define the specific situation where personal interests clash with professional duties.