Nepotism Revisited

Nepotism: The word continues to stick to family businesses like the proverbial tar baby, stigmatizing them in the view of outsiders as somehow inbred, unprofessional, second-rate. Questions about nepotism often perplex the family business owner, too, who is concerned that the hiring of relatives can affect the company's reputation, its ability to attract top executives, and the morale of its employees.

Almost 30 years ago the Harvard Business Review studied corporate attitudes toward nepotism in one of the most comprehensive, in-depth explorations ever done of the topic. The results were surprising. The nationwide survey of 2,700 business leaders showed that many recognized, and appreciated, the value of having capable, loyal family members working in a business, despite some potentially strong drawbacks.

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