Family Corruption: Relatives in Corrupt Transactions

Although corruption is commonly portrayed as a socially harmful and unethical behavior, and family is often regarded as the building block of society, this article argues that the two often intersect in real life. Kinship ties frequently serve not only as sources of emotional support but also as conduits for illicit transactions and for resource misallocation. From minor nepotism to large‐scale state capture, family relationships frequently shape how corruption is organized, justified, and sustained. Drawing on interdisciplinary theories, this article develops a five‐part typology of family corruption—family for corruption, corruption for family, corruption for survival through family, corruption for the family firm, and dynastic state capture. Each reflects different positions, motivations, and coordination mechanisms, ranging from micro‐level kin‐based trust to a macro‐level neopatrimonial system. Challenging the idealized separation of family from formal institutions, the article shows how familial obligations can override universalistic norms, embedding corruption within the everyday practices and moral orders. The article contributes a new conceptual framework for understanding how formal systems of government and business are shaped by kinship logics—often beneath the surface of legality and bureaucracy.