Just want to comment on this, because I think think favoring unknown candidates is a mistake we make too often, and in fact the "normal" process is a disaster on both sides for this reason. Nepotism or Cronyism is granting resources, patronage, jobs to someone you know instead of a qualified candidate. In many industries this is how they function because qualifications and skill provide little to no differentiation (Think knowing Microsoft word and having a comms degree with no work experience).
In high skill industries where experience is hard fought... people know the who the "people" are because they stick out like sore thumbs. If your hiring process at work is throw up a job on indeed and see what resumes come through, your company likely isn't worth working at anyway because the best candidates aren't randos.
Think of it this way if you were putting together the Manhattan project again would you recruit the people with a stellar reputation in physics, engineering, manufacturing, etc OR would you throw up a job on a job board or your corporate site and see what comes back? The difference is active vs passive, good reputation vs no reputation (or a bad reputation).
Not trying to make a big semantic argument... I just want to say that things like reputation and network matter... and thats not really "nepotism"