This report defines workplace nepotism and outlines how favoritism in hiring, promotion, or evaluation can damage morale, reduce productivity, and harm company reputation. While not always illegal, nepotism can lead to ethical issues or discrimination claims. To prevent these risks, organizations should implement clear anti-nepotism policies that define covered relationships, standardize hiring processes, and prohibit supervisory relationships between relatives. Training managers on bias and ethics, documenting employment decisions, and fostering safe reporting channels are also key to maintaining transparency and trust. Ultimately, consistent enforcement and communication reinforce fairness and accountability across the organization.
