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Nepotism Definition. Simply put, the definition of nepotism is favoring relatives. Nepotism in the workplace occurs when employers favor relatives in making employment decisions, with little to no regard for anything but kinship.
But in many smaller, family-owned businesses, nepotism is viewed in more positive terms. Family members are trained in various aspects of management to ensure the continuity of the company when members of the earlier generation retire or die. In fact, in many small businesses nepotism is considered a synonym for succession.