Favoritism does not necessary have to happen in the private sector alone. Government probably has favoritism in it too. The president usually hires staff he knows and trusts usually from the same political party. When a new president comes from a different party the staff is let go (although probably they would not want to work with the new president). The same goes for Congress and the House. They hire people they know.
Classrooms can have favoritism too. Ever heard of the "teacher's pet?" A teacher might call on a certain student all the time to answer classroom questions. Either because he raises his hand all the time more than the other students or just because he appears to be smarter than the rest of the class to the teacher. Or it could be because the teacher likes the student more for whatever reason.
Even families have favoritism in them. A parent could have a child because the child has a similar personality as the parent or they share similar likes and dislikes. Then the other siblings start to resent that child.
I could continue with other examples but you get the point. All social groups have some sort favoritism. I kind of got sidetracked from talking about nepotism to favoritism but the two are linked. You cannot understand nepotism without understanding favoritism first.
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