Nepotism is a Latin term that originated in Roman times when emperors and powerful generals would appoint their nephews to high positions. In the modern business world, nepotism is showing favoritism toward one’s family or friends in economic practices.

Last week, the Hillcrest Business Improvement Association (HBIA) came face to face with nepotism when the board of directors narrowly avoided a troubling unethical – and potentially illegal – advertising endeavor.

The facts are these: Ann Garwood and Nancy Moors, an established same-sex couple, both serve on HBIA’s board. Garwood serves on behalf of Ad Ink and Moors on behalf of the HillQuest Urban Guide. Moors serves as the board’s vice president, and both Moors and Garwood serve on the marketing committee. Together they comprise 25 percent of the vote.

In February, the marketing committee unanimously voted to approve spending $4,800 to purchase the back cover of the upcoming HillQuest Urban Guide, which the couple owns. The proposal started in committee because it was under $5,000. This, of course, is convenient knowledge a boardmember would know. All expenses exceeding $5,000 require Request for Proposals – necessitating an open-bidding process – from the full board.

Moors and Garwood stood to financially gain from the ad placement as publishers of the HillQuest Urban Guide, and when fellow board members raised conflict-of-interest concerns, the two abstained during the full board vote.

HBIA Executive Director Benjamin Nichols noted that Garwood and Moors had formally pulled the ad at last Tuesday’s board meeting. However, the couple, who had initially declined to comment to the Gay & Lesbian Times, quickly changed their tune when they realized we were looking into the matter. They confirmed they’d pulled the ad under pressure.

According to Meredith Dibden-Brown, the City of San Diego’s Office of Small Business manager, the couple’s actions did not put HBIA at risk from a legal standpoint, but the clear appearance of conflict of interest can be troubling.

While Garwood founded Ad Ink in 1984, according to the Ad Ink/HillQuest Web site, “in 2003, Ad Ink became the parent company to HillQuest Urban Guide to 92103…and beyond.” In 2005, HBIA honored Ad Ink as Hillcrest’s Best Small Business.

In other words, Garwood and Moors are not only life partners but business partners. As such, their continued co-presence on HBIA’s board, as well as the steering committee of Hillcrest’s Town Council, is problematic.

Make no mistake: We admire Garwood’s and Moors’ commitment to the HBIA, which is precisely why we believe they will accept our proposal to donate the back-cover space to the HBIA. This isn’t a radical idea by any means. All socially responsible publications donate advertising space to nonprofit organizations – especially ones near and dear to their hearts. Here at the GLT, we donate thousands of dollars of advertising space each week to organizations that might not otherwise be able to afford to get their message to the community. Pick up a copy of Rage Monthly or CityBeat and you will see the same.

If Garwood and Moors believe it is vital that the HBIA has such a strong presence in the HillQuest Urban Guide – as they must if they were willing to guide $4,800 of the organization’s money toward the publication – then the reasonable action is to donate the space. Many people who sit on nonprofit boards and steering committees give generously for projects they feel are vital to the organization’s mission.

Further, we believe that Moors and Garwood should each choose an organization to serve. As it stands, there is an appearance of fiduciary irresponsibility to the community that they both endeavor to serve.

The fact is that there were plenty of ethical options available. It is unfortunate that they chose the one path that appears most unethical.

When paid services are required, most organizations would welcome open bidding to community-friendly businesses, allowing a fully informed board several options to decide upon. To that extent, not only do we call upon Garwood and Moors to donate the intended ad space, but we also ask the board to open the bidding process and explore alternatives, such as the ones mentioned above.

Calling for someone’s resignation is a serious matter. And while the process of procuring a $4,800 back-cover advertisement for the HillQuest Urban Guide wasn’t illegal, it does raise enough questions of conflict of interest that Moors and Garwood – as well as HBIA and other organizations like it – should consider putting in place both personal and formal policies that hold same-sex couples to the same standard to which we hold heterosexual couples.

Nepotism, by any other name – or sexual orientation – is still nepotism.