In business it is called conflict of interest, and can get you fired or possibly in a civil or criminal legal scrape, depending on what type of business you are in and the laws regulating it. In government is is called corruption. In those arenas it is formally recognized that bad things happen when people put themselves in a compromising position and the compass for the "right thing to do" gets a little off balance.
The old adage, that power corrupts hold true across history in little ways and tiny ways. And people with lots of power can get to thinking, hey I have a track record of success or results or profit, so the rules don't appply to me. Power corrupts ethics and morals, it repeats itself in history over and over again. That's one of the reasons in the U.S. we have three branches of government.
In sports it's called business as usual. Some sports are worse than others, but doubtful it is going away any time soon, we all gotta slog through the best we can.
For example, the gym that hires a judge to score kids out to a next level. The gym is paying the judge. The judge knows what they want. They judge wants to be invited back. The gym is big with a track record of successful options, so they don't feel the rules apply to them, they want to move kids up as they see fit. See? Teeny little slippages in ethics.... Happens all the time in sport. Some problems are worse than others. Let's see, judges given the benefit of the doubt to gyms that hire them and hammering another gym. Getting judged by your own family members or coaches, that has conflict of interest painted all over it. But so does a brother being a ref at their sibling's soccer game, etc. Bribery and murder in foreign governments, some of which have nuclear weapons or have terrible human rights records. Some problems are bigger than others, but yes it's frustrating when it impacts your team or kid.