Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.


Business Ethics

  • Login to see the comments


  1. 1. NEPOTISM Prepared By – Group 6
  2. 2. What is NEPOTISM? Nepotism is Playing professional favorites with family members in business or politics or Corporate. In our case -: Nepotism exists when one uses a position of power or authority to influence the hiring or promotion process of spouse, partner, sibling, child or other relative
  3. 3. Case Summary  Effie – Account Manager (Nepotistic) (Sr. to Sherry and wants Sherry to hire his daughter)  Trish – Applicant and Effie’s Daughter (applied through normal procedure)  Sherry – Hiring Decision Maker (Reporting to Effie  Raul - External Applicant (has clear edge on Trish in terms of Quality of Education)
  4. 4. Issues in Hiring Effie  If successful, Effie’s actions will result in the hiring of a less qualified employee. Hiring Raul would be best for the company.  If Trish is hired, department-wide perceptions of favoritism that will hurt morale will likely occur.  If Trish is hired, Sherry will be in an awkward position. Effie will effectively supervise and evaluate Trish. Trish and Effie will both also be in awkward positions.
  5. 5. Case Guidelines to check nepotism.  Review your company’s policies on nepotism to maintain your currency. Most companies have employment guidelines specifically stating that employees are not permitted to take part in activities that could be construed as nepotistic.  Require all your subordinates to periodically review your company’s guidelines and resolution procedures involving nepotism to assure familiarity.  Direct your human resources department to resolve any nepotistic issues which might be unresolved in a timely manner.  Direct your employees who have a conflict of interest concern to describe the situation to a Human Resources Department contact and ask for guidance.
  6. 6. Ethical Decision Making Model
  7. 7. Is Nepotism So Bad? Forbes(6/20/2009) article Manufacturing plants supplied with workers from a local town will almost always have relatives working together. Johnson says that in those cases, nepotism has to be an acknowledged and hard- wired part of the business. Relatives should be encouraged to hold one another accountable for doing a good job. That can produce better workers and even make firing dead weight a little easier–though letting go of anyone who has relatives at a company will always be awkward.
  8. 8. In Black and White Trouble can arise if a company advertises a vacant job and then fills it with an employee’s relative who clearly is less qualified than, say, a female or minority applicant. That can run up against the Civil Rights Act of 1964, which outlaws discrimination on the basis of race, color, sex, religion or national origin. Even if discrimination is not the intent, this can be dangerous territory, but the solution is easy. If the job opening is never publicly advertised, it’s almost impossible for anyone to cry foul over nepotism. In India there is no such law to fight NEPOTISM, It is Breeding in our political system at large. NEPOTISM, CASTISM and CORRUPTION are the basic issues in our System
  9. 9. Best Examples of NEPOTISM  Kaycee Krysty, CEO of Laird Norton Tyee  Robert (Robin) C. Loudermilk Jr., CEO of Aaron’s (investment company)  Lew Wolff, CEO of Wolff Urban (inspired by Oil-Dri)  Dick Jaffee, Former CEO of Oil-Dri  Kathy Wiseman, founder of Working Systems (Favours Nepotism)