Definition
Nepotism is giving jobs or advantages to relatives or friends regardless of merit, while favoritism is any biased preference that undermines fairness at work.

Introduction
Organizations thrive on merit. When promotions are decided by relationships rather than performance, honest employees disengage and talent walks away. Ethical management demands impartial systems that reward capability, not closeness.

Explanation
1️⃣ Moral Hazard – Personal bias clouds professional judgment.
2️⃣ Transparency in Hiring – Clear criteria and documented evaluations reduce manipulation.
3️⃣ Disclosure of Relationships – Managers must recuse themselves from decisions involving family or close friends.
4️⃣ Culture of Fair Feedback – Recognition should follow measurable contribution.
5️⃣ Leadership Example – Executives set the tone; when they model fairness, others follow.

Key Takeaways

Meritocracy sustains motivation.

Hidden favoritism poisons teamwork.

Ethics requires equal opportunity for all.

Real-World Case
Infosys introduced internal job-posting systems where all qualified employees can apply for roles before external hiring. This open process minimized favoritism claims and demonstrated that fairness could coexist with speed in tech hiring.
Reference: https://www.infosys.com