Practice of appointing relatives and friends in one's organization to positions for which outsiders might be better qualified. Despite its negative connotations, nepotism (if applied sensibly) is an important and positive practice in the startup and formative years of a firm where complete trust and willingness to work hard (for little or no immediate reward) are critical for its survival. Read more
USAGE EXAMPLE
Jack was rightly accused of nepotism when he only interviewed his two best friends for the new position with the company.