When you work for a company and favortism is given to someone not based on merit or hard work but because they are a relative or friend of the boss it’s called nepotism. Many large corporations have policies where relatives cannot work in the same area or report to their relative. Some companies will not even hire a relative to work for them in order to avoid this potential conflict. In small family run companies nepotism can exist and there is really little that can be done about it. After all, they’re family.