duty of loyalty

The duty of loyalty is a legal obligation that requires individuals in positions of trust—like company executives or board members—to act in the best interests of the organization, not for their own personal gain. This means they should avoid situations where their personal interests conflict with their responsibilities, and they must disclose any potential conflicts. Essentially, they must prioritize the organization’s success and integrity over their own benefit, ensuring their decisions are made honestly and transparently without self-dealing or favoritism.