Cronyism is supporting and supporting people from the same circles, or families. At the same time, his actions are not guided by the actual value of these people, but only knowledge. Usually, we also talk about cronyism in the case of institutions, or state-owned companies at various levels - both local, and governmental. It can also take place in workplaces. An example is hiring a close friend for a job vacancy, despite those willing for this position and meeting all the requirements.
Cronyism is very similar and is often confused with nepotism. Cronyism, however, is a broader concept, than nepotism. Nepotism is about favoring members of your own family. Cronyism is about friends, or people related to one organization, np.: party.
Both cronyism, and nepotism in democratic countries are controversial. In some cases, this activity is illegal, be inconsistent with the work ethic, or politics. Sometimes, however, especially in the case of cronyism, intentional action is hard to prove
Cronyism can also be linked to corruption. Means, that e.g.: job seeker propose benefits to decision maker, most often material and financial.