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A manager uses his position to award an unfair contract to a relative. What does this illustrate?

Answer and explanation

Correct answer: Conflict of interest and unprofessional conduct

The governing concept is professional ethics in management. A manager is expected to make decisions impartially, use organisational resources responsibly and separate personal relationships from official duties. Giving a relative an unfair contract allows private interest to influence a business decision; it can harm the organisation, disadvantage other suppliers and reduce stakeholder trust. Hence option A is correct: the situation represents a conflict of interest and unprofessional conduct. Option B would require service to the organisation and stakeholders, while option C concerns competent use of knowledge. Option D refers to improving professional capability, not favouritism.

Related tags

ManagementProfessionConflict-Of-InterestEthicsManagement As A ProfessionNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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