Nepotism may make someone hire a relative at the expense of someone who has work experience as well as stronger education base. However, sometimes the relative is the most qualified but it will still give the impression of nepotism. The ethics of nepotism in business go hand in hand with business structure. The business structure can indicate that the business is family owned. This shows that that its establishment was under sole proprietorship or partnership meaning that the owner owns and controls it. The owners can also combine with their family members who act as partners. In some case however, the partnership is not family owned. This way, nepotism is more questionable when one partner decides to employ his family members yet other partners have an ownership stake interest in the operation.
Many businesses all over the world are family owned businesses. They play an important role in the economic development in their respective countries. Family businesses face one critical problem, which is the issue of nepotism. In developed countries, measures have been taken to curb nepotism whereas in developing countries, it is part of their daily lives (Sidani, Yusuf & Thornberry 69). In today’s business life, nepotism is evidently rampant. Workers in such family businesses compete with the favored personnel; it is hard to for them to be promoted because there are not awarded according to the abilities and knowledge. This environment therefore portrays unfair competition and it will have negative effects on nonfamily personnel. A critical sufficient study that analyzes such an environment is essential in order to understand the topic on family firms, job satisfaction, negative word of mouth, intention of quitting the job and their relationships with nepotism (Sidani, Yusuf & Thornberry 70). Qualification factors that employers should consider include knowledge, ability to success,