What is self-dealing?

Self-dealing refers to a situation where an individual in a position of authority exploits their role for personal benefit, typically at the expense of the organization they serve. This can occur when a decision-maker uses their position to benefit themselves financially or to gain personal advantages that are not aligned with the interests of the community or organization.

In this context, the correct choice highlights the act of exploiting community assets for personal gain, clearly illustrating a violation of ethical standards expected of individuals involved in community management. Such actions can undermine trust, create conflicts of interest, and lead to significant legal and reputational repercussions for both the individual and the organization.

The other choices outline scenarios that, while potentially problematic, do not encapsulate the essence of self-dealing as effectively. For instance, using company funds for community events may be a legitimate use of resources if done transparently and with proper authority. Similarly, investing community funds in personal businesses or hiring personal friends could lead to conflicts of interest, but they are more specific situations that may not necessarily reflect the broad concept of self-dealing in the same way as exploiting community assets purely for personal gain.