Nepotism occurs when someone in a position of power uses their influence to favorably impact the hiring or promotion of a family member. It can damage company morale and result in less qualified candidates being hired over more qualified external applicants. While nepotism may be an accepted practice in some small, family-run businesses, companies should have clear policies against it and evaluate all candidates based on their qualifications alone to avoid potential legal issues. Some argue that nepotism is not always bad if relatives hold each other accountable, but it becomes risky if a less qualified family member is hired over a more qualified external candidate from a protected class.

1. NEPOTISM
Prepared By – Group 6

3. 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

4. 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)

5. 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.

6. 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.

7. Ethical Decision Making Model

8. 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.

9. 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

10. 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)