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Nepotism is the favoring of an employer's relatives and friends in the workplace. The relative or friend is hired solely on the basis of kinship, regardless of any regard for the ability to do the job. The word nepotism is derived from the Latin word nepos, which means “nephew” or “grandchild.” The term came into use in the late Middle Ages from a practice of popes and bishops. Since they had taken a vow of chastity they normally had no children of their own, but they often had nephews to whom preferment was given in ecclesiastical employment. Some nephews preferred became cardinals. At least one, Rodrigo Borgia (1431–1503) became a pope (Pope Alexander VI). The general practice was outlawed in canon law by the papal bull, Romanun decet Pontificem (1692), issued by Pope Innocent XII.

Hiring family members is an expected aspect of many cultures around the world. The ties of blood create responsibilities for the welfare of family members, and giving them a job becomes very important to the solidarity of kinship relations. In societies where extended families, which may be clans or tribal, are the primary social structure, the practice of nepotism is either common or an expected practice. The practice in the Third World by locals can have a negative effect because it creates a dead weight of incompetence among job holders who have demonstrated no merit. Globally it is a not unusual for smaller companies and many nonprofit organizations to hire family members. Children may learn the family business by doing paid jobs.

Managers from Western countries where nepotism is not the standard practice have at times had to yield to local practices and hire numerous family members. When commercial employers hire people who are related to each other, though not to the employer, it can have the benefit of making leading family members responsible for other family members. The steel industry in the United States long practiced hiring members of families recruited from eastern and southern Europe because these families had close ties and would discipline their relatives if their jobs were put in jeopardy by the misbehavior of junior family members.

The opposite of nepotism is the creation of a meritocracy, where those with the most abilities are hired because it can be demonstrated by examinations or by their performance records. It is often the case that talent in high-performing individuals is found in their offspring, so that the practice of hiring the children of high achievers is sometimes simply allowing merit to have an opportunity. Among Protestant ministers there have been families that have produced excellent ministers for generations.

Nepotism in Government

In the United States some states and some federal practices limit nepotism. It is commonly denounced for political reasons, as happened when President John E Kennedy appointed his brother Robert Kennedy to be Attorney General. Elsewhere in the world there has always been a tendency toward dynastic succession. The succession in North Korea, Syria, Azerbaijan, and elsewhere has been that of father following son as his successor.

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