Yeah, I didn't draw the distinction I was making clearly enough. I've edited the post, but it's too late to clearly show the edit.

My point being, in the U.S. there is an agreement (implicit or explicit, depending on the context) that hiring will be fair, above board, and based on meritocratic principles. Nepotism undermines this and is, in the distinction I was trying to draw, dishonest from the standpoint that an organization will say one thing ("We hire based on merit") and do another ("We hire based on connections"). Other cultures do not necessarily play this game and make it quite well known that you will be hired based on your network above most else.