Running Head: NEPOTISM 1

Nepotism

Roel Mata

South Texas College

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A nagging problem for organizations, usually small to medium sized businesses, is the

unethical problem of nepotism. Nepotism has it roots back to the 17th century Catholic popes and

bishops who had taken vows of chastity. Chastity prevented popes and bishops from transferring

powers to their own children, so they would transfer power to their nepos or nephews. This sort

of favoritism exists in all situations; business, entertainment and politics.

In small to medium businesses, nepotism exist due to the fact that owners usually trust

their own family member with finances, intellectual property and the general vision of where the

business is going. As a business grows, family is usually in place in the higher more important

positions preventing new employees from advancing their careers. Nepotism is not only a small

business problem, larger corporations are also victims of this unfair, unethical problem. A good

example of this is the Walton family and their Walmart empire. Sam Walton is one of the

founders of Walmart. They have had a long history of nepotism by assigning family members the

highest positions in the company. Sam’s oldest son Rob became the Chairman of the Board of

Directors upon Sam’s death. Shareholders objected to the assignment due to the fact that they

wanted an independent to oversee the important position. Our own President Trump also

practiced nepotism when he was elected to the White House. He assigned his son-in-law Jared

Kushner and his daughter Ivanka Trump to senior post in his administration. Kushner has little

foreign policy experience, but he oversees Middle East policy, government reform, managing the

opioid crisis and Ivanka has little experience also. She was sent to the G20 economic summit in

Germany to meet about the global economy. There were probably dozens of well qualified,

seasoned individuals that lost out on these two government positions. The individuals that were
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in line for these positions were certainly discouraged by these assignments and in turn hurts the

morale of the administration.

I personally worked for a local therapy clinic that was family owned and career

advancement was nonexistent for everyone else. Brothers and sisters of the owner oversaw

clinics and rules were unfair and favored themselves. I eventually left the company after

repeatedly being overlooked for promotions and pay raises. Local school districts also have a

tarnished reputation of “who you know” to get employed. Although there are state policies to

prevent nepotism in school districts that draw state funds, proving nepotism is difficult if not

impossible.

Regardless of whether the organization is big or small, the effects of nepotism are the

same. There is resentment and low morale knowing that the promotion you got is viewed by

others as not earned due to the fact of who you know. If you are on the other end of not getting a

promotion due to the fact of who you didn’t know, this can bring down morale and make

employees not try harder or stunt growth and creativity. Loss of productivity is usually a

byproduct of nepotism since less qualified employees will fill positions due to favoritism. An

organization also runs the risk of losing valuable employees. Employees that feel it’s not worth

sticking around a situation that is unfair and hopeless. It might be easier to quit and start looking

for another job where nepotism will not determine their advancement. Businesses also run the

risk of legal implications if nepotism leads to discrimination or a hostile environment. Romantic

relationships which involve a supervisor and a subordinate have a chance of disrupting the

workplace. If he or she is promoted or if there is a breakup, there is sure to be legal ramifications

brought on by other employees.

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Diversity is a powerful characteristic of a healthy company. Ideas are tossed around and

analyzed better if a wide range of people are involved in a team. If nepotism exist in a company,

the pool of diverse employees is narrowed, and thoughts and ideas are the same and ideas

become stagnant. There could also be accusations of racism, religious, or ethnic preferences.

Possible solutions to nepotism range from human resource departments conducting

training seminars or putting together an employee handbook. Getting employees to sign off on

the policies a company has put together is a good first step in preventing future lawsuits. Keep in

mind that not all family member hiring’s are considered favoritism. Some family members might

be rightfully hired or promoted if they meet the qualifications of the job. Making false

accusations might hurt you in the long run if you don’t take a step back and assess the situation.

Just because the “keys” to the company were handed down to a sibling doesn’t necessarily mean

that the person is unqualified. A sibling might have all the knowledge or academic credentials to

run a company and being the son or daughter of the owner is something that is out of their

control. An owner might feel that hiring family members will keep the business in a closed circle

of trust and hiring an outsider will potentially break that circle.

When nepotism happens in a business, it is important to evaluate the situation and

determine if it is hindering your potential career growth and what your plan of action will be. If

it’s just a case where the promotion went to a qualified individual that just happens to be the

sibling or friend of the boss.