Final answer:
Conflict of interest occurs when a person or organization may benefit from undue influence due to involvement in outside activities, relationships, or investments that conflict with or have an impact on the employment relationship or its outcomes.
Step-by-step explanation:
The subject of this question is Conflict of Interest.
Conflict of interest occurs when a person or organization has outside activities, relationships, or investments that may unduly influence their decision-making in their employment. In such situations, there is a conflict between the person's personal interests and their responsibility to their employer or organization.
For example, if a bank employee also invests in stocks and shares, they may be tempted to provide insider information or biased advice to benefit their personal investments, which is known as insider trading.