Vice President Jim has a subordinate, Eric, who is dating his daughter, and the two have developed a serious relationship. When it comes time to recommend Eric for a salary increase, Jim will be facing a conflict of interest.

Conflict Of Interest

Judgment or objectivity is compromised because of two competing ends that must be satisfied.

Salary Increase

An upward adjustment in wages or earnings, often reflecting recognition of employee performance, inflation, or changes in market rates.

Subordinate

An individual who is under the authority or control of another within an organizational hierarchy.