What is the term for a situation where a person has divided loyalty due to personal interests?

The correct term for a situation where a person has divided loyalty due to personal interests is "conflict of interest." This concept arises when an individual's personal interests—such as financial interests, family relationships, or friendships—may influence their professional actions or decisions, potentially undermining their objectivity and integrity.

In professional settings, conflicts of interest can lead to ethical issues, as individuals might be tempted to make decisions that serve their personal interests over the best interests of their organization or clients. Recognizing and appropriately managing these conflicts is critical in maintaining trust and professionalism in various fields, including business, law, healthcare, and finance.

While dual loyalty might also seem relevant, it typically refers to situations where a person has loyalties to two parties simultaneously, which can create conflicts but is not a formal term used in professional ethics. An ethical dilemma refers to a situation in which there are conflicting moral principles, and professional misconduct pertains to unethical or illegal actions in a professional context. Thus, "conflict of interest" is the most accurate term to describe divided loyalty due to personal interests.