What is the difference between nepotism and cronyism?

[Heatman]

Both nepotism and cronyism involve favoritism, the key distinction lies in the nature of the personal relationships that are being exploited. Nepotism centers on familial ties, whereas cronyism extends to friends, associates, or political allies. In practice, the effects of both practices can undermine fairness, transparency, and meritocracy in various domains.

Seriously in the end, it is something that is going to affect your business negatively because you are favouring those that might not actually have the skill that you needed that is going to help your business to function effectively.