If somebody (who has power) is favoring his/her relatives, especially in appointment to desirable positions.
What do you call it?
Favoritism.............??? Yes........But we have another word in English, which is more apt in this context.
In ancient days the Bishops used to show favoritism to their nephews...So the word nepotism (observe this word's similarity with nephew) originated.
 
word:   nepotism
meaning: The favoritism shown to relatives (not necessarily to nephews).
usage: The prime minister is known for his nepotism.
 
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