Under the PMI Code of Ethics you disclose any real or potential conflict of interest to the appropriate stakeholders, then stay out of the decision until there is an approved mitigation plan and their consent to proceed. You treat even the appearance of a conflict as a conflict, however impartial you believe you are.
What counts as a conflict
The Code's glossary defines a conflict of interest as a decision or action that would benefit you or someone you owe loyalty to while harming another party you owe a similar duty of loyalty. The Code says research with practitioners found conflicts of interest are among the situations they face most often, and that a common problem is not recognizing one.
Example: you sit on a panel scoring supplier bids and one bidder is owned by your sibling. You owe loyalty to your employer and you have a family tie to a bidder. That is a conflict, even if you are sure you would score fairly.
The three conditions before you take part
The mandatory Fairness standard says that once you realize you have a real or potential conflict, you refrain from the decision and from trying to influence it unless or until three things are in place: full disclosure to the appropriate stakeholders, an approved mitigation plan, and the stakeholders' consent to proceed.
Disclosure alone is not enough. If you told the sponsor your spouse works for a vendor under evaluation and the sponsor only acknowledged it, you stay out of the evaluation until a mitigation plan is approved and consent is given. The glossary adds that the only way to resolve conflicting duties is to disclose and let those affected decide how you proceed.
Fairness in bidding and hiring
The Code asks you to give equal access to information to those authorized to have it, and its comment applies this to bidding. If one prospective supplier phones with a question that exposes an ambiguity in the requirements, the clarification goes to every bidder, not just the caller.
The same chapter forbids hiring, firing, rewarding or awarding contracts on favoritism, nepotism or bribery, and asks you to give equal consideration to all qualified candidates.
Where the exam catches people
Believing confidence in your own impartiality settles it: the Code says to treat the appearance of a conflict as a conflict.
Believing disclosure lets you carry on: you also need an approved mitigation plan and the stakeholders' consent.
Believing you should decide the fix yourself, such as excluding the relative's firm: those affected decide how you proceed after you disclose.
Believing you can answer one bidder's question privately: bidders must have equal access to information.