Final answer:
A conflict of interest occurs when an individual's or group's opposing interests could impact the fairness of their decision-making. An instance is when a public official's private investments could influence their public duties. These conflicts highlight the tension between personal gains and the public good.
Step-by-step explanation:
A conflict of interest occurs when individuals or groups have opposing interests, and their duties or responsibilities to one party could negatively influence their ability or decision-making regarding another party. An example of conflict of interest could be when a public official has financial investments in a company that is subject to regulation by that official's government agency, potentially influencing decisions that should be made in the public interest rather than personal gain.
Individual interests versus the interests of the group is a classic example of conflict. In one case, an individual's right to smoke tobacco may conflict with society's interest in public health. In another, personal earnings and government taxation come into play, as individuals wish to preserve their earnings while governments tax these earnings to redistribute for the public good.
Understanding conflicts, both on a personal level in emotional and moral dilemmas and within groups or societal frameworks, is crucial to grasping the dynamics of collective dilemmas and decision-making processes.