May 27, 2024

Law

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Nepotism and Alma Mater Favoritism Needs To Stop

Nepotism seems to be a wrong way to run a business, and yet there are so many closely held private companies which have withstood the test of time, and remained in the family and under the control of a select few in the bloodline. In the US we have an aversion to this due to our disdain for Monarchies, and yet, sometimes it works. When it comes to public companies, or the crony capitalist style of those who wish to influence elected government leaders – well, our regulations and laws concerning business don’t take too kindly to that here in the US. What about in other nations? Yes, let’s talk.

You see, in many nations that’s how things run, the royal extended family runs everything and rules over the people. Not so great if you are born outside the clan, but that’s what they do. In walks Western business interests trying to trade or do business in or with that country, now what? Yes, now what?

On August 21, 2013 there was an interesting article about the JP Morgan being called onto the mat by the SEC for hiring offspring of the Chinese Communist leadership in hopes of attaining preferential treatment there – the article was titled; “Nepotism: When Is It a Crime?” by Joe Palazzolo, Christopher M. Matthews, and Serena Ng. Of course, everyone knows that this is how things are done in other countries. And we do it here all the time, but let’s look at a quote from that article:

“The difference between buying influence and committing a crime: Intent to deceive, often by awarding no-show jobs to family members.”

Yes, nice example of nepotism gone wrong – but I would submit to you there is more to it than that. In FierceFinance there was another take on the whole thing. On August 21, 2013 there was an article titled; “Should Wall Street fear nepotism probe?” by Jim Kim. Let’s talk about ethics in corporations, government leadership, and non-profits for a moment, specifically:

1. Nepotism
2. Alma Mater Favoritism

Nepotism cannot always be avoided, and even when it can’t that doesn’t mean there isn’t just a tad of favoritism – there always is, something that cannot be avoided either. The same is true when it comes to Alma Mater favoritism – consider all the appointees to high-level government positions, or political leaders who are elevated by their handlers, or those invited to join boards of large non-profits, just because they attended Harvard or Yale? In California just because they went to Beverly Hills High School. Think about it.