Define: Nepotism

Nepotism is the practice of favouring relatives or close associates, especially in employment or granting of favours or privileges, often without regard for their qualifications, skills, or merit. It involves showing preferential treatment to family members or friends in hiring, promotion, or other decision-making processes, typically at the expense of fairness, equal opportunity, and organisational effectiveness. Nepotism can lead to inefficiency, demoralisation of employees, and erosion of trust in institutions. It is generally considered unethical and can undermine the principles of meritocracy and equal opportunity in both public and private sectors. Organisations often implement anti-nepotism policies to prevent conflicts of interest and ensure fair and transparent practices in personnel decisions.

Nepotism is the practise of appointing relatives and friends in one’s organisation to positions for which outsiders might be better qualified. Despite its negative connotations, supporters argue that nepotism (if applied sensibly) may act as an important and positive practice in the startup and formative years of a firm as complete trust and a willingness to work hard (for little or no immediate reward) may be critical to its survival.

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This glossary post was last updated: 29th March, 2024.