The "meritocratic process" is laughable. Legacy admissions have always been a critical component of those systems, especially once wealth was no longer an adequate filter; allowing a few newbies through the sieve in order to conceal the real purpose of the ivies—perpetuation of an elite caste—has been the game for a long time. As universities are pressured from the left (getting rid of standardized testing) and right (getting rid of any sort of racial consideration in admissions), legacy will only become more important as an attribute. That a few people beat the odds doesn't at all imply that the system is fair or that that solution is scalable.
"Culture fit" is realistically both important and historically has been a really problematic thing to conflate with or consider alongside "merit." It is a tough problem and I don't have a great answer to it.
By that token, if your company tends to hire a certain sort of person, that is by no means an indication of corruption. I certainly don't see what's inherently corrupt about submitting a job application, going through interviews, and ultimately being hired, mostly by strangers.
When you say you want the solution to be "fair", what do you mean exactly? If a Chinese restaurant staffed entirely by Chinese people hires only additional Chinese people, with the intent of maintaining the efficiency of a culturally homogenous environment, is it fair? Does it matter? It certainly isn't corrupt. Doesn't this apply to every business and any culturally discriminatory hiring criteria?
1. This does a pretty good job of describing cronyism https://meltingasphalt.com/crony-beliefs/
There’s no reason sticker price tuition at Brown needs to be almost $60k a year, and it is scandalous that Harvard, Princeton, and Yale charge tuition at all.
You seem to be discounting the meritocratic process by which people end up graduating from high-ranking schools. Prestigious law firms for instance will only consider graduates from specific institutions, specifically because they act as a filter for talent and ability.
You also seem to be conflating the hiring of people who are culturally similar to corruption. In fact there are many benefits in collaborating in a culturally homogenous environment. Maintaining such an environment in order to reap those benefits has merit too.