Source : Webster's Revised Unabridged Dictionary (1913)

Nepotism \Nep"o*tism\ (?; 277), n. [L. nepus, nepotus, nephew:
   cf. F. n['e]potisme. See {Nephew}.]
   Undue attachment to relations; favoritism shown to members of
   one's family; bestowal of patronage in consideration of
   relationship, rather than of merit or of legal claim.

         From nepotism Alexander V. was safe; for he was without
         kindred or relatives. But there was another perhaps
         more fatal nepotism, which turned the tide of
         popularity against him -- the nepotism of his order.
                                                  --Milman.

Source : WordNet®

nepotism
     n : favoritism shown to relatives or close friends by those in
         power (as by giving them jobs)