Cronyism is a practice where friends or associates of those in power are given preferential treatment, often in business or politics. This can lead to unfair advantages, such as government contracts or job opportunities, being awarded not based on merit but on personal relationships. As a result, it can undermine trust in institutions and create a sense of inequality among those who are not part of the favored group. This behavior can be seen in various sectors, including government, corporate environments, and even non-profit organizations. When cronyism is prevalent, it can stifle competition and innovation, as decisions are made based on loyalty rather than capability. Ultimately, this can harm the overall economy and society.