Cronyism involves the appointment of friends and associates to positions of authority without proper regard to their qualifications. This term encapsulates practices that undermine meritocracy and can lead to the inefficiency and corruption of institutions.
Crony capitalism refers to the favoritism that develops in free-market economies due to close personal relationships between government officials and industry leaders or other interest groups.
Nepotism refers to the practice of favoritism toward one's family in employment and economic policies, where firms give favored employment positions to family members and encourage business transactions with other family members. Though common in some areas, many U.S. businesses discourage nepotism in personnel practices.
