Which statement about ethics and disclosure is correct?

• A. Disclosure before harm occurs is optional.
• B. Disclosure before harm occurs is essential to protect independence and inform stakeholders.
• C. Disclosure should be avoided to protect client privacy.
• D. Disclosure is required only after litigation.

Answer: (B)

Timely disclosure of conflicts of interest and any information that could influence professional judgment is essential to maintain independence and trust. If potential issues are shared before harm could occur, stakeholders can assess the risk, decide how to proceed, and put appropriate mitigations in place. This transparency helps ensure decisions are made with full awareness of influences, protecting both the client and the professional from hidden biases and later disputes. It also supports accountability and reduces the chance of claims or litigation by showing a commitment to integrity.

Disclosing only after problems arise or avoiding disclosure to protect privacy would undermine trust and the ability to manage risk. The ethical duty is to be open about relevant relationships or conditions that could affect independence, so all parties can address them proactively.