What practice involves favoring family members in hiring?

The correct choice accurately describes the practice of giving preferential treatment to family members in hiring situations. Nepotism specifically refers to the practice where employers favor relatives or friends when making hiring or promotion decisions, often bypassing the merit-based selection process. This practice can lead to ethical concerns and questions about fairness in the workplace since it can disadvantage qualified candidates who are not related to the decision-makers.

When considering the other options, affirmative action refers to policies aimed at increasing opportunities for historically marginalized groups, which does not specifically relate to family connections. Preference hiring generally implies giving priority to certain candidates based on criteria that are not related to familial ties, and discrimination is a broader term that encompasses unfair treatment based on various attributes but does not narrow the focus to familial relationships. These distinctions underline why nepotism is the most appropriate term for the scenario described.