Which term describes the obligation to act with loyalty and avoid conflicts of interest?

• A. Duty of loyalty
• B. Duty of care
• C. Transparency
• D. Fairness

Answer: (A)

The obligation to act with loyalty and avoid conflicts of interest is the duty of loyalty. This fiduciary standard requires putting the organization’s interests ahead of personal gain, avoiding self-dealing, and disclosing any conflicts so you can recuse yourself from related decisions. When someone serves in a governance or leadership role, they must not use confidential information for personal advantage or pursue opportunities that compete with the organization. The other terms reflect related ideas but not this specific duty: a duty of care focuses on the reasonable diligence and prudence exercised, transparency centers on openness and disclosure of information, and fairness concerns impartial and just treatment.