What does the term "fiduciary duty" mean?

The term "fiduciary duty" refers to the legal obligation of one party to act in the best interests of another. This duty is most commonly found in relationships where one party, often called the fiduciary, has a position of trust and confidence, such as in the cases of attorneys to their clients, trustees to their beneficiaries, and agents to their principals. The fiduciary is expected to prioritize the well-being and interests of the other party over their own personal interests and to manage any potential conflicts that may arise during the relationship.

In this context, the other options do not fully encapsulate the essence of fiduciary duty. While acting honestly in business transactions is important, it does not encompass the broader obligation of prioritizing another's interests. Confidentiality is also a vital aspect of many fiduciary relationships but is a subset of the larger duty to act in the best interest of the person being served. Upholding a company’s values pertains more to corporate ethics and governance than to the specific responsibilities inherent in a fiduciary relationship. Thus, the obligation to act in the best interest of another party is the most accurate representation of what fiduciary duty entails.