What is a common ethical dilemma faced in business?

Conflicts of interest represent a significant ethical dilemma in business because they occur when an individual's personal interests might interfere with their professional responsibilities. This situation can lead to biased decision-making, potentially harming the interests of the company, its stakeholders, or the public. For example, a manager who has a financial stake in a supplier may favor that supplier over others, even if it is not in the best interest of the organization.

In contrast, while creating innovative product designs, developing new technologies, and finding effective marketing strategies are all important business activities, they do not inherently involve the ethical complexities and potential for negative consequences associated with conflicts of interest. These activities may raise ethical questions but do not directly present the same level of conflict between personal and professional obligations that characterizes an ethical dilemma. Thus, identifying and managing conflicts of interest is crucial for maintaining integrity and trust in business operations.