Is nepotism good for large businesses?

In the businesses world, ethics are important at all times for the development of a company or business, there are standards and codes of ethics that each member of the organization must follow. Many authors have commented that nepotism is a controversial topic in business ethics. Even though it is not unethical to employ family members who are prepared and competent for the job, some employees may feel disadvantaged so nepotism may bring certain disadvantages for the company.

Many people affirm that nepotism is not so bad, in fact there are large and international companies that have been transcending by each one of the members of the family like “Forbes”. Also, if the relative who assumes the position of work either in the directive or another position in the company proves to be prepared and promotes teamwork, the work would be more efficient. However, nepotism sometimes leads to relatives getting jobs when other candidates have better education and work experience.

First, nepotism tends to create envy and resentment among employees. Non-family employees may feel that there is a favoritism towards family employees and feel disadvantaged, so they will feel unmotivated about their job, as well as demotivating external people who are looking for work. In other words, if nepotism exists, many people may be inhibited from seeking work or from performing positively in their work for fear of not being included in the company.

Second, nepotism can create confusion between the family and business system, causing family problems in the company and vice versa. Also, It may be the case that a family member is hired for interest and that they are not prepared enough and doesn’t know how to handle the assigned job. So, if a relative is hired as an executive and proves to be incompetent, he or she may not be dismissed or displaced as easily as others.

In conclusion, there are some cases where nepotism has worked like Forbes, Oil Dri, and some cases that haven't worked like “Family Fued”, in which there was a public scandal between the owner, Sumner Redstone and his daughter Shari. But in some cases hiring family members may be the best option because they are more likely to have a greater sense of responsibility in their work than one who is not relative, but when there are conflicts in a family, the feelings involved can cause negative consequences to the company.