Nepotism Decoded: 5 Psychosocial Reasons Behind Kinship Favor

“You see your brother and a stranger drowning. If you can save only one, whom will you save?”

This very question leads to one of the most negatively connoted topics—nepotism. As Steven Pinker has said, the word nepotism has fallen victim to cultural prejudice. Nepotism refers to giving opportunities to those you know well rather than to strangers. It divides the pool of workers or potential candidates into insiders and outsiders. Insiders are more favoured, cherished, and granted greater opportunities to succeed, while outsiders must struggle and yearn for the same chances. This appears grossly unfair and amoral, undermining the premise of equity. However, should nepotism be completely discarded from social systems?

---

What is Nepotism?

According to Nicholson (2021), “Nepotism is the favoring of kin over non-kin in resource allocation, nurturing, or attention.”

Nepotism refers to the illegitimate use of influence, power, and position, by an important person in a system, to the advantage of his/her kith and kin. (Roy, 2021)

---

Evolutionary Basis of Nepotism

Though the concept of nepotism may seem unfair, nature itself has perpetuated it. After all, the rule is “survival of the fittest,” not “survival of all.” Every species shares a strong innate drive for survival and reproduction, favouring those who are genetically similar to them (Fields, 2010). To ensure the progression of their genes and characteristics, most organisms strive to nurture, protect, and support their kin. They help “their own kind” to enhance their fitness and thrive in the world. Hence, nepotism is seen as an extension of genetic self-interest (Bellow, 2003).

---

Psychosocial Basis of Nepotism

Cooperation and collaboration are crucial for survival, growth, and progress. Nepotism, while often criticized, can be understood through various psychosocial mechanisms:

1. Asymmetrical Altruism

In social settings like organizations, companies, or businesses, job positions, promotions, or other benefits are often given to relatives or acquaintances as a form of asymmetrical altruism. The giver may not expect anything in return but simply seeks the well-being and advancement of the favoured individual. Since nepotists are naturally biased toward their kin and close acquaintances, this altruism appears asymmetrical.

2. Biased Decision-Making

Privileges are often extended to relatives due to relatedness, affiliation, and warmth toward them. When emotions influence decision-making, the outcomes are less rational (Lerner, 2015).

• Confirmation Bias: The nepotist may only focus on the positive qualities of the favoured person while overlooking their flaws because that is what they want to see.
• Availability Bias: While considering candidates for a particular role, the nepotist may remember the name of an acquaintance or relative more readily than that of a stranger.

3. Familiarity Breeds Comfort

Humans are naturally averse to discomfort and uncertainty. According to Prospect Theory, people are prone to loss aversion and risk minimization (Kahneman, 1979). Unknown situations or individuals can elicit discomfort and anxiety. Nepotism becomes a psychological refuge as it provides a safer, less stressful choice—choosing the “known wolf” over the “unknown rabbit.”

• Familiarity from prior interactions allows nepotists to predict (even inaccurately) the behavior, loyalty, and working style of the favored individual. This predictability reduces anxiety.
• According to Reis et al. (2011), familiarity also increases attraction toward a person, ultimately fostering a stronger desire to interact with them. Positive perceptions make interactions between the nepotist and the favored individual smoother.

4. Tacit Knowledge

Tacit knowledge refers to skills and insights gained through relevant experiences and context. Nepots (favored individuals) are often exposed to the same environment as the nepotist, making them more likely to possess this implicit knowledge (Jaskiewicz et al., 2013).

• Nepotists require less energy and effort to train their favored individuals since the latter often share similar goals, values, and understandings.
• This alignment in goals and values makes the working relationship more efficient and less tiresome.

5. Social Exchange

Nepotism benefits not only the favoured individuals but also the nepotists. Favoured individuals, being aware of their privilege, may feel obligated to justify the trust placed in them.

• According to Social Exchange Theory, social interactions involve reciprocity. Sensitive individuals who benefit from nepotism are likely to work harder to maintain trust and return the favour, ensuring mutual benefit in the relationship.

---

Employing Nepotism Wisely

1. Set Transparent Guidelines : Establish clear, transparent policies for hiring, promotions, and benefits to prevent undue favouritism. Create objective criteria for recruitment or promotions, ensuring nepotism doesn’t undermine merit-based decisions.

2. Focus on Competence and Merit : When favoring a relative or acquaintance, ensure the person meets or exceeds the qualifications required for the role. Assess their skills and experience objectively to ensure they can contribute effectively to the organization.

3. Use Nepotism for Strategic Gains : Employ nepotism in areas where relationships and trust are critical, such as family-run businesses or roles involving high confidentiality. Example: Family businesses often thrive when relatives hold leadership roles because of shared values, long-term commitment, and mutual trust.

4. Use Nepotism to Preserve Institutional Knowledge : Leverage nepotism to retain tacit knowledge within organizations, particularly in family-owned businesses where relatives have been exposed to the organization’s operations for years.

5. Introduce Accountability Mechanisms : Assign unbiased supervisors or third-party evaluators to monitor the performance of favored employees. Periodic reviews can ensure they meet organizational standards and do not exploit their position.

6. Separate Personal and Professional Relationships : Define boundaries between personal and professional rlationships to maintain a balanced work environment.

7. Avoid Creating Resentment : Ensure that employees understand the rationale behind hiring a relative. Communicate openly to reduce perceptions of bias.

Hence, nepotism is not inherently bad—it is context-dependent. Use it in ways that strengthen the organization while respecting meritocracy.

---

References

1. Bellow, A. (2003). In Praise of Nepotism: A Natural History. United States: Doubleday.

2. Fields S, Johnston M., 2010. Genetic Twists of Fate. Cambridge (MA): MIT Press. Chapter 16, The Law of Evolution: Darwin, Wallace, and the Survival of the Fittest. https://www.ncbi.nlm.nih.gov/books/NBK559908/

3. Jaskiewicz, P., Uhlenbruck, K., Balkin, D. B., & Reay, T. (2013). Is Nepotism Good or Bad? Types of Nepotism and Implications for Knowledge Management. Family Business Review, 26(2), 121-139. https://doi.org/10.1177/0894486512470841

4. Kahneman, D., & Tversky, A. (1979). Prospect theory. An analysis of decision making under risk. _Econometrica_, _47_(2), 263-292. https://doi.org/10.21236/ada045771

5. Nicholson, N. (2021). Nepotism. In: Shackelford, T.K., Weekes-Shackelford, V.A. (eds) Encyclopedia of Evolutionary Psychological Science. Springer, Cham. https://doi.org/10.1007/978-3-319-19650-3_3083

6. Neyer, F. J., & Lang, F. R. (2003). Blood is thicker than water: kinship orientation across adulthood. _Journal of personality and social psychology_, _84_(2), 310–321. https://doi.org/10.1037//0022-3514.84.2.310

7. Lerner, J. S., Li, Y., Valdesolo, P., & Kassam, K. S. (2015). Emotion and decision making. _Annual Review of Psychology, 66,_ 799–823. https://psycnet.apa.org/doi/10.1146/annurev-psych-010213-115043

8. Reis, H. T., Maniaci, M. R., Caprariello, P. A., Eastwick, P. W., & Finkel, E. J. (2011). Familiarity does indeed promote attraction in live interaction. _Journal of Personality and Social Psychology, 101_(3), 557–570. https://psycnet.apa.org/doi/10.1037/a0022885

9. Roy, Gitanjali. (2021). Nepotism: History, Politics, Culture, and Ethnicity. 10.1007/978-3-319-71066-2_82-1.