BrandsMart USA

Why is Nepotism and Cronyism Bad for Business?

It’s basic human nature to want to help out a relative when what they need is a job. Business owners and executives do it as a matter of course, where their children are taken into the business.

Low Employee Morale, Abuse of Power, Management Difficulties and Termination Trouble are symptoms of Nepotism and Cronyism.

Nepotism and Cronyism can have severely negative effects on a company’s performance and employee relations.

Family ties are very strong, and unscrupulous relatives can easily leverage this to receive extra benefits or an unfair advantage. There can be a sharp dip in employee morale around the office. There may even be a sharp decline in company performance as well, as the relative’s orders will be obeyed based on the ties with the boss, and not on merit.

Nepotism in the Ivory Tower

Perlman’s

(Note: ITHS Management, Inc. – Property management company created by Michael Perlman to manage BrandsMart USA properties.)

Johnsons

Viscos

  • Vincent “Vinnie” Visco – Chief Information Officer – Programmer
    • Vinnie Visco Jr. – Programmer

Cronyism in the Ivory Tower

Cronyism is the practice of partiality in awarding jobs and other advantages to friends or trusted colleagues. For instance, this includes appointing”cronies” to positions of authority, regardless of their qualifications.

Cronyism is like nepotism, except the favor is not toward relatives. Instead, it’s the practice of offering favor, such as a position that one is unqualified for, in exchange for ongoing blind loyalty. And it’s a problem in organizations of all types and sizes.

Here’s the thing: Those who lack integrity are the ones more willing to be yes-men. Those who lack skill are the ones more willing to never challenge their boss. Those who have always skated by are the ones more willing to continue to do so. The consequences of cronyism are vast and deep, because the essence is favoritism based on a relationship despite capability or qualification.

  • Michael PerlmanPresident – Landlord
    • Thomas “Tom” Freeman – Vice President Stores and Store Design
    • Rob Lathers – Merchant/Buyer
    • Lara Aronoff – Director of Marketing – No Longer with the company.

Contact

Corporate Address:
3200 SW 42nd Street
Hollywood, FL 33312

Corporate Phone Number:
954-797-4000
Toll Free:
800-432-8579

Freedom of Speech

Once, if a business, business owner did something an employee or member of the public didn’t like or disagreed with, they had little recourse besides protesting in person or to their local Better Business Bureau. Now, with the avenue of the Internet, the average person can easily voice their concerns and open a dialog to come to a compromise and/or lead to a resolution. If that opportunity by the business or business owner neglects to respond, it is up to any of those individuals to voice their response.

The most basic component of freedom of expression is the right of freedom of speech. The Supreme Court requires substantial justification for the interference with the right of free speech where it attempts to regulate the content of the speech. Generally, a person cannot be held liable, either criminally or civilly for anything written or spoken about a person or topic, so long as it is truthful or based on an honest opinion, and such statements.