In common with other users of the term I have noticed that you employ ‘nepotism’ only at its most negative.
I believe this demonstrates the short sightedness of political correctness.
In the absence of any pre-existing proof of competence, selection for a position must seek to assess both the underlying knowledge needed and the likely application of the candidate to its practice.
The former can only be made by objective means (qualifications, formal tests etc.) but the latter is inevitably more subjective. Better, surely, to base this assessment on a lifetime’s personal knowledge of the candidate than on a short interview?
I know exactly what my nephew is good for and I would neither employ him myself nor recommend him to others in a capacity for which he was not fit. To do so would certainly impact negatively on either my purse or my reputation.