Final answer:
The true statement about conflicts of interest is that they involve a person's competing interests which can affect impartial decision-making but are not necessarily outright unethical.
Step-by-step explanation:
The question asks which statement is true about conflicts of interest. The correct answer is C) They involve a person's competing interests. Conflicts of interest can influence a person's ability to make unbiased decisions because they have to choose between their own personal interests and their duty to another person or organization. Such conflicts are not necessarily always unethical, but they become problematic when they unduly influence decision-making and when the person involved does not disclose or manage the conflict appropriately.
Moreover, conflicts of interest can occur in various settings, not only in business but also in personal relationships, government, research, and medicine. They do impact decision-making, which is why ethical guidelines and policies exist to address them.
To handle conflicts effectively, especially in professional settings, it is essential to recognize and manage them before they have an adverse impact. It's vital to consider the interests of both oneself and others when making decisions and to adhere to ethical principles to regulate and resolve conflicts efficiently.