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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.
Nepotism -- securing employment or an employment benefit for a close relative -- constitutes such a critical issue to organizations that it is addressed by legislation in some states. It seems obvious that public officials are required to maintain an appearance of impartiality, and a formal anti-nepotism policy seems a logical choice to address this issue in large government agencies. But managers might wonder if a nepotism policy is really necessary or important for a small business.