Which scenario represents a conflict of interest?

A scenario represents a conflict of interest when an individual's personal interests interfere with their professional responsibilities. In this case, having a personal relationship with a vendor without disclosure creates a situation where the employee might favor that vendor over others, potentially compromising their ability to make objective decisions in the best interest of the employer.

By not disclosing the relationship, there’s a lack of transparency that could lead to favoritism or biased decision-making, which can harm the organization’s integrity and lead to ethical breaches. The importance of disclosure cannot be overstated, as it allows for appropriate measures to be taken to mitigate any potential biases or unethical practices.

In contrast, while other scenarios may raise questions about boundaries or appropriateness, they do not inherently create a conflict of interest. For instance, having a side job or running a business may not directly interfere with an employee's primary duties as long as there’s no overlap or impact on their job performance. Similarly, openly disclosing a family relationship with a vendor allows the employer to evaluate the potential impact without hiding the situation.