A conflict of interest occurs when an individual's personal interests—such as family, friendships, financial investments, or social status—could compromise their professional judgment, decisions, or actions in the workplace. These situations can create an appearance of impropriety, even if no unethical act is actually committed. For example, if you are responsible for hiring a new vendor and your cousin owns one of the bidding companies, your personal relationship could, or could appear to, influence your decision, even unconsciously.