FACULTY OF ENGINEERING

Name

DEPARTMENT OF CHEMICAL ENGINEERING

: Faadilah

Surname

: Jacobs

Student number

: 215135024

Course

: National Diploma: Chemical Engineering

Subject

: Management Skills: Application

Subject code

: ENM101S

Lecturer

: Dumisani Hlongwane

Due date

: 2 March 2016

Table of Contents
1.

Introduction............................................................................................................ 3
1.1.

Background...................................................................................................... 3

1.2.

Purpose........................................................................................................... 3

2.

Define Nepotism...................................................................................................... 3

3.

Is nepotism a form of discrimination?..........................................................................4

4.

Effects of Nepotism in the workplace..........................................................................5

5.

Law(s) governing nepotism in South Africa workplace...................................................5

6.

Conclusion............................................................................................................. 6

7.

References............................................................................................................. 7

1. Introduction
1.1.

Background

The common phrase that when seeking for employment, forging business partnerships or any
favour in a business are; its not what you know, but who you know. With an increasing

unemployment rate and in an economic climate in which obtaining employment becomes

difficult for even the skilled it seems harmless to recommend a relative or a friend for a position
in your company. Networking and recruitment, for instance, is a great advantage to many
businesses when it comes to word-of mouth by employees. It is more cost effective as the
business relies on its employees to find candidates for the positions open or requested favours.
However, when we seek to benefit our family, friend or have a different agenda to gain
something out of it from them rather than keeping the businesss at first priority, it can become
unethical and corrupt.
Transparency International's (TI) 2013 global Corruption Perception Index (CPI) shows that
South Africa has dropped 34 places since 2001, with half the decline of 17 places occurring
since 2009. South Africa is currently ranked at number 72 out of 175 countries and heading
downwards.(Corruption Watch, 2014). Nepotism goes hand-in-hand with corruption. Being a
form of corruption, this practice allow people to abuse their positions of power in order to
engage in dishing out favours left and right to benefit not the business but themselves.

1.2.

Purpose

The aims of this assignment are inter alia, four-folds namely (a) to define what nepotism is, (b)
to indicate whether nepotism is a form of discrimination and motivate why is or is not, (c) to
discuss the effects nepotism has in the workplace, and (d) state the law(s) governing nepotism
in the South African workplace. The assignment will be concluded by summing up my views.

2. Define Nepotism
Nepotism is the execution of offering jobs and other favours in ones organisation of
employment, on the basis of a family relationship first, to positions for which other candidates
are better qualified. Despite its negative connotations, nepotism (if applied sensibly) is an
important and positive practice in the startup and formative years of a firm where complete trust
and willingness to work hard (for little or no immediate reward) are critical for its survival.
(Business Dictionary.com, n.d.)
The term comes from Italian word nepotismo, which is based on Latin root nepos, meaning
nephew or grandson. Since the Middle Ages and until the late 17th century, some Catholic
popes and bishops, who had taken vows of chastity, and therefore usually had no legitimate
offspring of their own, gave their nephews such positions of preference as were often accorded
by fathers to son. (Wikipedia, n.d.)

There are different types of nepotism, such as:

Political

Organizational

In employment

We will be dealing with nepotism in the workplace/in employment.

3. Is nepotism a form of discrimination?

Discrimination is defined as differential treatment of people depending on their group affiliation.
Employment discrimination is a form of discrimination based on race, gender, religion, etc., by
employers. Discrimination can be intended and involve disparate treatment of a group or be
unintended, yet create disparate impact for a group. (Wikipedia, n.d.).
Unfairness is a core discrimination value and nepotism fly completely in the face of the whole
concept of unfairness. One pledge that having their relative at their organization of employment
will not bring personal issues and favouritism with their them but is human nature to care for
those we love and it becomes difficult to ignore the personal relationship during work hours.
Nepotism does not at first seem like it forms part of discrimination, however, nepotism which, as
previously defined, is a form of favouritism due to the fact that there is a personal relationship
with the relative or friend. This undermines not only staff morale, but also the commitment to the
organizations policies and procedures and values of the company. Nepotism is seen in the grey
areas of discrimination, meaning that if one does employ their relative or friend, for example,
and does not have a professional behavior during working hours (favouritism towards relative) it
may be seen as nepotism but if there is equality, fairness and the individual draws a line
between business and personal, which many individual are not able to, there would be no
reason for accusing discrimination.
So one can then ask, is it a form of discrimination? Due to the uncertainty of whether it is or not
we cannot say it forms part of discrimination or it doesnt. In my opinion, I would say it is both.
Both in the sense of the way you handle the relative in the workplace regarding keeping the
personal relationships out of working hours.

4. Effects of Nepotism in the workplace

A major problem businesses tend to face is that they fail to see how nepotism affects the
business badly. The most important aspects of this problem are for me legitimacy and
competence. (Mystic Madness, n.d.). When recruiting for positions one should ensure that if
they are open to hiring relatives or friends that have the adequate skills and that they ultimately
are the best suit for that position. This show equality while recruiting employees, but equality
does not stop there. Special treatment should not be shown and if it is it can be seen as
discrimination in the workplace and the businesss performance will drop. There are many other
problems that has a domino effect from nepotism such as:

Lose the trust of your employees. Nepotism in the workplace creates a big problem
when your employees feel that you are not putting the business first. When hiring a
relative conspiracies arise and employees may feel that the relative is not the best fit and
only has the job because of the relationship with the individual. This type of thinking
leads employees to feeling unfairness and loses their trust in the business. The business

then gives off an image of corruption.

Employees might start undermining the new person. Prejudice can be very impressive
in some people and it might even go so far as trying to ruin someone elses work. If
some people of your team feel that the person you hired is unfit for the job they might
actively try to bring him or her down by sabotaging his or her work. (Mystic Madness,
n.d.)

Nepotism- favouritism, undeniably stirs up negative feeling and generally when it happens in the
workplace people feel that their jobs are in jeopardy and threatened by the relative. This can
wreak havoc in a business and amongst its employees.

5. Law(s) governing nepotism in South Africa workplace

South Africa does have direct laws that prevent hiring the family members in the organisation of
employment of ones self, simply because it would be unfair for the law to ban the hiring of
people because of their relationship when they would fit the job perfectly. However, when a
person is hired to reserve any favours and not because he or she is the best for the job, then a
line has been crossed and the company that hired them is guilty of corruption.

The Prevention and Combating of Corrupt Activities Act stipulates that if you give someone a
gift so that he or she or their family member secures you a favour from the organisation, you are
committing the crime of corruption. Section 12 of the act specifically criminalises giving (or
receiving) any gratification to improperly influence the procurement of a contract with a public
body or a company. (Corruption Watch, 2014).
This corrupt acts are seen in the workplace as unfair labour practices as the equality of the
employees are questioned. The Labour relations Act stipulates that everyone has the right to
fair labour practices. It is when the family relative or friend is also being treated differently to
other employees, favours the relative, unfairness arises with the other employees. Equality is a
very important law in the constitution that should be applied in the country, thus including the
workplace. Nepotism is a contravention of the right to equality. The favouritism of a family or
friend is discrimination on your social standing and birth. Everyone should be treated equal in
front of the law. Laws governing equality is also stated in the constitution under equality. The
EEA, in section 6 also contains detailed provisions to counteract and eliminate unfair
discrimination in the workplace.
The BCEA also protects the employee from unfair discrimination. One of the purposes of this
Act is to advance economic development and social justice by fulfilling the primary objects of
this Act which are to give effect to and regulate the right to fair labour practices conferred by
section 23 (1) of the Constitution.

6. Conclusion
All in all nepotism is a very controversial subject and many in South Africa abuse this unfair
practice because it cannot be banned or not banned, thus leaving it in a grey area. Nepotism,
like many practices are not solely bad, it can help start-up businesses to great extents, but in
most cases the cons out measures the pros. In my opinion, it is all about intention. Employees
will pick up what your intentions are and they would see down the line whether the family
member is a good fit or not for the job position. Nepotism should thus be judged based on the
intention of the recruiter.

7. References

Biz Community. 2013. HR News: Nepotism, Cronyism and unethical networking by Kay Vittee.
http://www.bizcommunity.com/Article/196/362/93639.html [20 May 2013].
Corruption Watch. 2014. Corruption News: Why is corruption getting worse in South Africa by
Gareth Newham. http://www.corruptionwatch.org.za/why-is-corruption-getting-worse-in-southafrica/ [17 January 2014].
Ethics Monitor. 2014. Its not what you know, but by Janine Erasmus posted on Corruption
Watch. http://www.ethicsmonitor.co.za/Nepotism.aspx [30 September 2014]
BusinessDictionary.com.n.d.Nepotism.
http://www.businessdictionary.com/definition/nepotism.html
Wikipedia. n.d. Nepotism. https://en.wikipedia.org/wiki/Nepotism.
Wikipedia. n.d. Discrimination. https://en.wikipedia.org/wiki/Discrimination
Wikipedia. n.d. Employment Discrimination.
https://en.wikipedia.org/wiki/Employment_discrimination

Ehow. n.d. Business: Business & Society: Business Ethics: Is neopotism discrimination? By
Dan Ketchum. http://www.ehow.com/info_8681645_nepotism-considered-discrimination.html
Mystic Madness. n.d. How can nepotism in the workplace ruin your business.
http://www.mysticmadness.com/how-can-nepotism-in-the-workplace-ruin-your-business.html
Corruption Watch. 2014. Dear corruption watch: Nepotism must be tackled. Available from:
http://www.corruptionwatch.org.za/nepotism-must-be-tackled/ [30 June 2014]
Just Answer. South African Law. n.d. What is the SA constitution stance against nepotism.
Available from: http://www.justanswer.com/south-africa-law/6k5n5-sa-constitution-s-stanceagainst-nepotism.html#ixzz41ZGDwxN1
Wikipedia. n.d. South African Labour Law: Unfair Labour Practices. Available from:
https://en.wikipedia.org/wiki/South_African_labour_law#Unfair_labour_practices
Wikipedia. n.d. South African Labour Law: Discrimination Law. Available from:
https://en.wikipedia.org/wiki/South_African_labour_law#Discrimination_law
Labour Protect. n.d. Extracts from the Basic Condition of Employment Act, 75 of 1997. Available
from: http://www.labourprotect.co.za/basic_conditions_of_employment_act,_bcea.htm
South African Constitution, n.d. Chapter 2: Bill of Rights. Available from:
http://www.justice.gov.za/legislation/constitution/SAConstitution-web-eng-02.pdf